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.
Where I’m Finding Dividend Yields Up to 24.9%
This Sector Pays Out 7%+ Yields It’s tough to find a decent yield nowadays. We’re at the tail end of a nine-year boom, and most of those gains have come from higher valuations, not necessarily real profits. But you can’t.
Walgreens Boots Alliance Inc: Time to Consider This Recession-Proof Dividend Stream
If You Want to Earn a Recession-Proof Passive Income, Read This Markets are having a sell-off. But for investors of this recession-proof dividend stock, there’s really not much to worry about. I’m talking about Walgreens Boots Alliance Inc (NASDAQ:WBA), a.
Annaly Capital Management: This REIT Yields 11.8%
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CMS Energy Corporation Raises Cash Payment to Shareholders
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Church & Dwight Co., Inc. Hikes Dividend as Profit Rises
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Lock in This Safe 13.3% Dividend Yield
A High Dividend Yield That’s Surprisingly Safe In today’s market, the number-one reason why investors tend to stay away from ultra-high yielders is the concern about their dividend safety. Think about it: when most companies pay less than four percent,.
Select Income REIT Offers a Rock-Solid Yield of 9.4%
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How I Collect Monthly Rental Income (Without Dealing with Tenants)
Where I’m Finding 7%+ Yields Each month, I receive a rent check for a couple hundred bucks. I’ve collected these payments for years. And each month, they get a little bigger. In fact, these rent checks have become quite the.
General Motors Company Earnings: Will GM Stock Increase Its Dividend?
GM Stock Dividend Forecast Due to the cyclical nature of the business, automakers aren’t known as the most solid dividend payers. But since General Motors Company’s (NYSE:GM) restructuring, the company has made a strong comeback and has started returning cash.
Summit Midstream Partners LP: This 10.2% Dividend Yield Is No Joke
If You Want to Earn a Double-Digit Yield, Read This Today’s chart highlights one of the highest-yielding stocks in the current market, Summit Midstream Partners LP (NYSE:SMLP). Headquartered in The Woodlands, Texas, Summit Midstream Partners is a master limited partnership.
