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 Hard Asset Yields Up to 7%
Wealthy Investors Buying This I think you’ll argee with me when I say: The government has printed too much money. Years of deficits have propped up the economy, which has finally resulted in soaring inflation across the county. As a.
Earn an 8.5% Yield with a Payment Increase Every Quarter
This Overlooked Dividend Growth Stock Provides a Generous Payout Today’s article highlights one of the highest yielding dividend growth stocks in the market, Holly Energy Partners, L.P. (NYSE:HEP). In an era where the average S&P 500 company pays less than.
Is This Stock With a 14.3% Dividend Yield Worth Considering?
Can a 14.3% Yield Possibly Be Safe? For yield-seeking investors, few things are better than a 14.3% annual payout. But in an era when a four percent dividend can be considered high-yield, a double-digit yield just seems too good to.
3 Dividend-Paying Stocks to Help Income Investors Survive the Next Recession
If You Want to Collect Recession-Proof Dividends, Read This Things look pretty good for income investors at the moment. The economy is booming, corporate profits are soaring, and the new tax reform has led to quite a few dividend increases..
This Large-Cap Stock Pays Investors a Generous Dividend Yield of 11.8%
1 Large-Cap High Yielder to Consider Large-cap stocks have been the bread and butter of many income investors’ portfolios. The reason is simple: for companies to command huge market capitalizations, they often need entrenched positions in their operating markets. And.
McCormick & Company, Incorporated: This “Boring” Stock Has Soared 1,110%
Today’s post drives home a theme we repeat over and over on Income Investors: You can make exciting returns in boring stocks. Longtime readers know we love simple businesses. Companies that “sell the basics” often make great long-term investments, given.
Washington Prime Group Inc: This 15.7% Yield Looks Interesting
Is This 15.7% Yield Safe? Let me start by stating the obvious: you have to dig really hard to find a decent yield nowadays. After a 10-year bull market, most stocks look pretty expensive. You can, however, still find value.
Buckeye Partners, L.P.: This 10.4% Dividend Yield Is Worth a Look
Is This Beaten-Down Stock About to Make a Turnaround? Because dividend yield moves inversely to share price, it shouldn’t come as a surprise that beaten-down stocks can offer some of the highest payouts. Take Buckeye Partners, L.P. (NYSE:BPL), for instance..
A Rock-Solid 7.5% Dividend Yield You Likely Haven’t Considered
This is a Top High-Yield Stock for Income Investors When it comes to finding high-yield stocks, real estate investment trusts (REITs) and energy partnerships are arguably the two most common places to look. However, that doesn’t mean investors should ignore.
Senior Housing Properties Trust: A Safe 10.1% Yield
A Rock-Solid 10.1% Yield Today’s chart highlights another winner from an aging America. Regular readers have heard our bullish argument on healthcare before. As baby boomers get older, they’ll need more drugs, more testing, and more medical facilities. This trend.
