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.
Steady Dividends From This Rare 12% Yielder
A 12% Yield with an “A” Rating I rate the majority of the high-yield names that cross my desk below junk. You don’t find too many safe double-digit payouts. But today’s stock should inspire confidence, at least as far as.
Collect Monthly Dividends with a 9.2% Annual Yield
This Is One Monthly Dividend Stock to Consider Today’s chart highlights one of the best monthly income opportunities in the current stock market, American Hotel Income Properties REIT LP (OTCMKTS:AHOTF, TSE:HOT.UN). Income investors love monthly dividend stocks. Because of their.
Kimberly-Clark Corporation: This “Boring” Business Could Deliver Exciting Returns
Today’s feature proves to keep things simple works once again. Many of my best investment ideas adhere to the “grandparent test.” In the same way, you shouldn’t eat something your grandmother wouldn’t recognize as food, you shouldn’t invest in something.
Why Investors Should Consider This 8.1% Yielding Monthly Dividend Stock
If You Want to Earn a Passive Monthly Income, Read this In today’s market, certain businesses make more cash than others. And many of those businesses come from the infrastructure sector. Whether it’s a natural gas utility or an airport.
L3 Technologies Inc Announces 14th Consecutive Annual Dividend Hike
LLL Stock Raises Dividend by Seven Percent L3 Technologies Inc (NYSE:LLL) might not be a familiar name to most income investors. But over the years, the company has been consistently raising its payout. L3 Technologies is in the defense industry..
CSX Corporation Raises Dividend, Increases Share Buybacks
CSX Corporation Returning Cash to Investors In today’s stock market, most companies return cash to investors in two ways: paying dividends and repurchasing shares. And now, one company has some good news on both fronts. On Monday February 12, CSX.
Lock in a Safe Dividend Yield of 10.3%
A High-Yield Opportunity You Likely Haven’t Considered In today’s market, one of the best places to find high-yield stocks is the energy sector. Of course, I’m not talking about the drillers. Because of the volatility in commodity prices, the exploration.
Apollo Investment Corp.: This 11.3% Yield Looks Compelling
This Stock Now Yields 11.3% To earn bigger yields, investors have to be willing to take bigger risks. You won’t find many safe double-digit payouts just sitting around. Yield hunters have to venture out into lesser-known industries, like master limited.
Enbridge Inc: This “Forever Asset” Yields 6.2%
1 “Forever Asset” for the Next 100 Years Today’s chart once again highlights some of my favorite dividend stocks around, “forever assets.” I termed the phrase “forever assets” to describe a group of businesses that have paid out dividends for.
PepsiCo, Inc. Earnings: Will PEP Stock Increase Its Dividend?
PEP Stock Dividend Forecast When it comes to returning cash to investors, few companies have done a better job than PepsiCo, Inc. (NASDAQ:PEP). Now, the Purchase, New York-based food and beverage giant is reporting earnings again. Let’s see what the.
