Dividend Stocks
Stocks that provide dividends are an excellent way to build long-term wealth. Not only do dividends provide investors with regular income, but dividend stocks can also help investors weather market volatility. How? Whether the markets are going up, down, or sideways, dividends provide investors with a steady income stream.
Having said that, while dividends are usually paid out quarterly, at the discretion of the company’s board of directors, they can be raised, cut, or eliminated.
Not all dividend stocks are created equal. As a result, there are a number of factors investors need to consider when looking at dividend stocks.
Dividend yield is one of the most important factors to consider when investing in dividend stocks. It might be tempting to just invest in a stock with the highest dividend yield, but there is a risk/reward trade off when it comes to dividend-yielding stocks—the higher the yield, the greater the risk.
Stocks that provide an annual dividend of 10% or more tend to be very risky. Because they are risky, there is a greater chance the dividend could be cut—or worse, the share price could plummet. This means investors lose out on dividend growth and capital appreciation.
History is another important factor to consider. Look for stable companies that have a long history (five, 10, or even 25+ years) of both paying an annual dividend and increasing that dividend annually. Those stocks that offer annual dividend growth as part of their corporate culture are more likely to continue that trend.
The best way to determine whether or not a company can continue to provide an annual dividend and raise its yield is to look at the company’s free cash flow. Free cash flow is the amount of free cash, or money left over after it pays for operations and necessary capital expenditures. The more money a company has in the bank, the greater the chances are that it can sustain or increase its high dividend yield.
Walt Disney Co: Future Dividend Giant on the Rise
Top Dividend Growth Stock You Likely Haven’t Considered With an annual yield of 1.6%, Walt Disney Co (NYSE:DIS) doesn’t seem to be an income investor’s favorite. However, if you decide to cross Disney stock off your list, you could be.
Annaly Capital Management Inc: Top Dividend Stock Yields 11.6%
NLY Stock: A High-Yield Stock for Income Investors Today’s chart highlights one of the most generous dividend payers in the current stock market, Annaly Capital Management Inc. (NYSE:NLY). Headquartered in New York City, Annaly Capital Management is a mortgage real.
Dividend News: S&P 500 Stocks Paid Out Record Total in Dividends Last Quarter
Dividends Hit All-Time High Stocks started high on Tuesday, at the beginning of a shortened trading session. This was despite heightened fears of a growing trade war between the United States and several of the country’s largest allies. The Dow.
AmeriGas Partners, L.P.: A 10.7% Yield with an “A” Rating
Safe Income From This 10.7% Yielder I rate most of the double-digit payouts that cross my desk as junk. You don’t see too many safe, high yields out there. But today’s company might inspire confidence, at least as far as.
Vodafone Group Plc: A Telecom Giant That Pays More Than 7%
Consider VOD Stock for Reliable Dividends To income investors, few things are better than a solid telecommunications stock. Think about it. The industry is known for having high barriers to entry. The infrastructure needed to provide voice, messaging, and data.
Where to Find “Hidden” Dividend Yields of 10%+
The Secret Source of Big Yields The other day, I tore up my place looking for my wallet. It took me over 20 minutes to find it. Turns out I left it sitting right out in the open, on the.
CEQP Stock: This 7.5% Yielder Is an Insider Favorite
A High-Yield Stock You Likely Haven’t Considered There are many reasons why investors should consider a particular company. In my opinion, though, one reason significantly outweighs the others—insider ownership. You see, no matter how brilliant Wall Street analysts are, they.
Walmart Inc: Should Investors Pick Up WMT Stock on the Cheap?
Walmart Stock Could Be an Opportunity Large-cap, blue-chip companies have always been popular among income investors. Because these companies are highly sought after, investors usually have to pay a premium to add them to their portfolio. Therefore, when something as.
CBL Stock: Up 52% Already, But Still Offering a 13% Yield
High-Yield Stock Making a Turnaround “…with a well-covered dividend, CBL & Associates Properties’ 19.9% yield deserves a look.” That’s what I told Income Investors readers on April 24. In that piece, I explained why dividend investors should consider this high-yield.
How to Collect an 18.1% Yield in Oil Royalties
This Fund Pays Out 18.1% In 2017, each resident of Alaska received a check for $1,200. Why? It all comes down to one commodity: oil. Each day, the state produces about 500,000 barrels of crude. And residents are entitled to.
