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.
This Safe 7.9% Dividend Yield Is Well-Positioned to Grow
A High-Yield Dividend Growth Stock You Likely Haven’t Considered In a market where most stocks pay less than four percent, a safe and growing 7.9% dividend yield deserves income investors’ attention. The company in question is Medical Properties Trust, Inc..
Monroe Capital Corp: Beaten-Down Stock Offers a 10.5% Annual Yield
Should Income Investors Consider This High-Yield Stock? Today I highlight one of my favorite places to find high-yield opportunities: out-of-favor stocks. When an investor purchases a dividend stock, the yield they lock in is calculated by dividing the company’s annual.
This 6.6% Yielder Has Been Raising Its Payout for 54 Consecutive Quarters
The Best Income Play in the Energy Sector? If you want to find high-yield stocks in today’s market, the energy sector would be a good place to start looking. Because of the downturn in commodity prices, quite a few beaten-down.
BB&T Corporation Raises Cash Payment to Shareholders
BBT Stock Delivers Good News to Income Investors President Donald Trump’s tax reform has brought quite a few dividend increases, with BB&T Corporation (NYSE:BBT) being the latest example. BB&T Corporation is a bank holding company with over 2,000 branches. On.
Canadian Imperial Bank of Commerce Reports Earnings and Increases Dividend
CM Stock Returning Value to Investors American consumers may not be familiar with Canadian Imperial Bank of Commerce (NYSE:CM, TSE:CM), but this Toronto, Ontario-based financial institution is one of the few banks that can pay an increasing stream of dividends.
Williams Companies Inc Raises Cash Payout to Shareholders
Williams Companies Inc Announces 13.3% Dividend Increase Oil and gas prices are yet to make a full recovery, but quite a few energy companies have started raising their dividends again. Williams Companies Inc (NYSE:WMB) is the latest example. On February.
Garmin Ltd. Reports Earnings, Proposes Dividend Increase
GRMN Stock Returning Cash to Investors It’s not easy for consumer electronics companies to pay an increasing dividend, but Garmin Ltd. (NASDAQ:GRMN) has been doing just that. On February 21, Garmin announced that its board of directors plans to increase.
Earn a Monthly Income with a 13.1% Annual Yield
Monthly Dividend Stock with a Huge Payout In the current stock market, most dividend-paying companies distribute on a quarterly basis. But for investors who rely on dividend income to cover their day-to-day expenses, getting a dividend check in the mail.
This One Minute Test Could Dramatically Boost Your Investment Returns
One Question Reveals Top Dividend Stocks For over a decade, I’ve used a quick test to guide all of my investment decisions. This quiz has helped my Automated Income readers earn a profit on 50 out of 69 recommendations. It.
This Income Stream Yields 7.9%
Little-Known Fund Yields 7.9% “Rob, low interest rates squashed my retirement plans,” my neighbor Crystal explained. “We’re going to have to work a lot longer than originally planned. If we could find a safe five percent yield, my husband and.
