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.
Spire: Little-Known Company Has Been Paying Rock-Solid Dividends for 73 Consecutive Years
Collect Rising Income That’s Also Recession-Proof Most people have never heard of this company, yet it offers one of the safest income streams in the stock market. I’m talking about Spire Inc (NYSE:SR), a natural gas utility company headquartered in.
QTS Stock: This Top Dividend Stock Has Returned 211% in Four Years
Consider QTS Stock for Both Income and Growth It was October 2013. The momentum in the U.S. stock market was going strong. The Dow, the S&P 500, and the NASDAQ were on their way to surpass their previous all-time highs..
3 Mid-Cap Dividend Stocks Yielding Up to 10.45%
A Sweet Spot for Income Investors? In today’s market, the most well-known dividend payers tend to be large-cap stocks, such as Johnson & Johnson (NYSE:JNJ) and Procter & Gamble Co (NYSE:PG). This shouldn’t come as a surprise; if a company.
Little-Known Partnership Pays Out 8.7% Cash Stream
This Dividend Stock Yields 8.7% Over the coming decades, few businesses will likely pay out faster-growing dividends than green energy. Aside from our leaders at home, most countries have pledged to cut their carbon emissions. That has set off a.
ARLP Stock: Out-of-Favor Stock Pays Big Yield of 10.83%
Consider This Down-and-Out Stock for Its Generous Yield In today’s market, the hottest sectors generally don’t provide much in terms of dividends. So, if you want to find stocks that pay big yields, it might be worthwhile to check out.
Limited Time to Lock In This 11% Yield
Turnaround Situation Yields 11% If you’re looking for big yields, one area of the market provides a rich hunting ground: turnarounds. Regular readers have heard us mention these before. Turnarounds involve buying companies that have fallen on hard times, identifying.
NGL Stock: This 13.11% Yielder Could Be a Turnaround Opportunity
Why Income Investors Should Consider This High-Yield Stock If you have been following the markets at all, you would know that the energy sector isn’t in the best of shape. With oil prices plunging more than 40% from where they.
OHI Stock: This Landlord’s 9.5% Yield Is Growing
A 9.5% Yield With Upside Over the next couple of decades, few businesses will likely mint more money than senior homes. Each year, four million baby boomers turn 65. That will push up demand for everything from doctor’s offices and.
This Might Be the Most Interesting 10% Yielder in Today’s Market
1 High-Yield Stock You Likely Haven’t Considered The blunt reality is that if you put all your money into stocks with double-digit yields, you are taking way too much risk. The reason is simple: if a high-quality stock with great.
CLNS Stock: This 8.73% Yielder Is a Bargain at Today’s Price
Finding Value in a Bloated Market With the stock market soaring past its all-time high, bargains are getting harder and harder to find. And that’s why Colony NorthStar Inc (NYSE:CLNS) is special. The company not only pays rock-solid dividends with.
