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.
PennantPark Stock: 12%-Yielder Hikes Monthly Payout 14%
PNNT Stock at Record Levels Now is a fantastic time to take a look at PennantPark stock. Let me explain… At the start of the year, analysts thought the Federal Reserve could announce as many as six interest-rate cuts in.
FLEX LNG Stock Yielding 11.28%
Maritime LNG Shipper Generating Strong FCF Today, my dividend-loving readers, I’m going to take a good look at FLEX LNG stock. Liquefied natural gas (LNG) is natural gas that undergoes a process where it’s cooled down to liquid form for.
Outfront Media Inc: Shares of 8.3%-Yielder Have 20%+ Upside
Outfront Media Inc Outlook Bullish on Strong Results Many industries took a massive hit during the 2020 health crisis. Some were more obvious than others. Because of quarantine orders, stores were shuttered and the need for billboards and other out-of-home.
Mach Natural Resources Stock: 15.20%-Yielder Beating S&P 500
A Small Oil & Gas Play to Watch Mach Natural Resources stock is a dividend pick you’ll want to keep an eye on. The Nasdaq and S&P 500 continue to set fresh new highs, powered largely by a small group.
Western Midstream Stock: Bullish 8.4%-Yielder Up 45% in 2024
Western Midstream Stock Hits Record High There are a few reasons to like Western Midstream stock…but, first, let me provide a little background. There are three stages of oil and gas operations: upstream, downstream, and midstream. “Upstream” refers to oil.
International Seaways Stock: 9.84%-Yielder Up 55%
Great Yield & Capital Appreciation Let’s talk about International Seaways stock. Countries around the world are constantly sourcing energy and chemicals, so this means transportation is key. There are four major avenues for moving energy sources and chemicals: pipes, rail,.
Westlake Chemical Partners Stock: 8.3%-Yielder Has Paid 39 Straight Quarterly Dividends
Wall Street Remains Bullish on Westlake Chemical Partners Today’s top income pick is Westlake Chemical Partners stock. Westlake Chemical Partners LP (NYSE:WLKP) is a limited partnership formed by Westlake Corp (NYSE:WLK) to operate, acquire, and develop production facilities for ethylene,.
Hafnia Stock: 16.69%-Yielder Up 74%
Hafnia Ltd Focused on Returning Capital Dividend stocks that offer high yields and return significant price appreciation are rare, but they do exist. Take Hafnia stock, for instance. Hafnia Ltd (NYSE:HAFN) operates the largest fleet of product and chemical tankers.
United Maritime Stock: 11.5%-Yielder Has 132% Upside Potential
Outlook for United Maritime Corp Bullish on Industry Tailwinds There’s a dry bulk shipping stock I think you should take a look at: United Maritime stock. The broader shipping industry has been on fire in 2024, energized by tensions in.
Natural Health Trends Stock: Shares of Overlooked 11.5%-Yielder Up 26% in 2024
Outlook for Natural Health Trends Stock Remains Robust Multi-level marketing companies (MLMs) might get a bad rap, but they’re as American as apple pie. Some are touted as nothing more than a pyramid scheme, but hundreds of millions of people.