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.
The 5 Best Retirement Stock Opportunities for 2017
Retirement Stocks to Watch in 2017 Owning the right dividend stocks with a great profile has proven to be a successful venture when working towards retirement. That’s why today’s article is focused on my favorite dividend growth stocks, many of.
AmeriGas Partners: Top Dividend Stock Now Yields 8.4%
An 8.4% Yield From This Top Dividend Stock Today’s chart highlights a group of top dividend stocks that have quietly paid out big yields: propane distributors. These firms deliver propane fuel to households. Because you’re looking at a mature business,.
5 Safe Dividend Stocks to Watch in May 2017
Safe Dividend Stocks for May 2017 Dividend-paying stocks are a great way to generate an income without selling your shares of a company. Based on time, patience, stock price gain, and income, dividend investing can add greatly to your overall.
Top 5 Retirement Stocks to Consider for 2017 and Beyond
Best Dividend Stocks to Own for Retirement Saving for retirement is not easy. A report last year showed that, in the U.S., people between the ages of 65 and 69 were more likely to be working than teenagers were, except.
1 Dividend Stock to Retire On
This Dividend Stock Hasn’t Missed a Payment Since 1925 Today’s article highlights one of my favorite “forever assets,” Kellogg Company (NYSE:K). I coined the term “forever asset” to describe a group of top dividend stocks that have rewarded shareholders for.
The Surprising Reason to Be Bullish on McDonald’s Stock
This Could Send McDonald’s Stock Soaring Today’s chart highlights my favorite way to identify top dividend stocks… shrinkage. Many investors want to invest in growing businesses. The best income stocks, however, often get smaller. Case in point: McDonald’s Corporation (NYSE:MCD)..
5 Best Dividend Stocks to Watch in May 2017
Top Dividend Stocks for May 2017 Finding dividend stocks for an income portfolio can be tough job in today’s market. Prices of the most solid dividend payers seem to have already been bid up. Moreover, interest rates have been increasing..
5 High-Dividend-Growth Stocks to Consider for May 2017
Dividend Growth Stocks Today’s piece will focus on high-dividend-growth stocks that are yielding up to eight percent. Before we begin, be aware that just because a stock is a high-dividend-yielding stock does not make it a dividend growth stock. Rather,.
Earn 10%+ Yields From Donald Trump’s Tax Holiday
Donald Trump’s Dividend Gold Rush President Donald Trump has kicked off the next dividend gold rush, and investors who stake their claims now could earn yields of 10% or more. On Wednesday, the White House gave us our first peek.
5 Cheap High Dividend Stocks for 2017
Cheap High-Dividend Stocks for 2017 The focus of this article will be companies that offer a high dividend yield and could see stock price appreciation in 2017. There are stocks that are mentioned that are yielding more than seven percent .