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.
Warren Buffett Loaded Up on STORE Capital Stock. Should You, Too?
A Dividend-Paying Gem Hidden in Warren Buffett’s Portfolio If you follow Warren Buffett, you would know that he has a fondness for large-cap, blue-chip companies such as financial institutions, multinational food and beverage companies, and airlines. Today, however, we are.
How to Collect Monthly Income Payments of 12% to 17%
Where to Find 12%+ Yields… Right Now Bonds yield next to nothing right now. But imagine what it’d be like to earn safe, double-digit payouts. If you could find 10% to 15% yield, how much more money would you collect.
CHY Stock: Unique Monthly Income Investment Yielding 10.1%
A High-Yield Stock You Likely Haven’t Considered When it comes to earning a monthly income from the stock market, investors usually think of real estate investment trusts and business development companies. Today, I’m going to show you a high-yield investment.
BKEP Stock: This “Storage Depot” Stock Pays a Big Yield of 9.8%
A High-Yield Stock That’s Actually Worth Considering The mainstream media rarely mentions this “storage depot” stock. But, for income investors, the company’s generous payout could go a long way toward boosting the return of a dividend portfolio. I’m talking about.
WPG Stock: Is This 11.5% Yield Safe?
This 11.5% Yield Looks Tempting Struggling to find a decent yield after a 10-year bull market? How about searching through the 52-week low list? You can sometimes find great investment ideas from the stock market discount rack. No doubt, some.
ADP Stock: Top Dividend Growth Stock with 42 Consecutive Years of Payout Increases
Earn an Increasing Stream of Income from ADP Stock As a consumer, you may not be familiar with the company Automatic Data Processing (NASDAQ:ADP). But as an income investor, you should take notice of this company, because it represents one.
GLP Stock: Earn a Double-Digit Yield from This Energy Partnership
GLP Stock: 1 Unique Energy Play You Likely Haven’t Considered Today’s chart shows why a particular energy partnership deserves the attention of income investors. Unless you’ve been living under a rock, you would have heard about the downturn in the.
OAK Stock: This 11.3% Yield Could Be Recession-Proof
A Hedging Strategy That Pays Investors 11.32% Every Year? The U.S. economy has been doing great. Jobs are growing and profits are rising. But income investors should watch out for the next downturn because as history has shown, our economy.
SNH Stock: Little-Known Landlord Yields 8.1%
The Safest 8.1% Yield Around Over the next few decades, few businesses will be more lucrative than senior housing. Analysts predict that, by 2030, the number of people aged 65 and over will double. A great many will need some.
Dividend Stocks: Should Investors Consider This Undervalued Stock Yielding 11.8%?
This Company Pays Oversized Dividends Markets can be highly efficient, which means it’s not easy to find bargains in the world of dividend stocks. If a company pays shareholders oversized distributions, chances are that investors will notice and bid up.
