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.
SPLS Stock: Is Staples Inc.’s 6.58% Dividend Yield Safe?
Staples Stock Offers Top Dividend In Retail Space Staples, Inc. (NASDAQ:SPLS) is one of few specialty retail players offering a high dividend yield. But before you decide to invest in Staples stock, you need to be convinced that this company.
TC Pipelines LP: This High-Dividend Stock Now Yields 7%
TCP Stock Should Be Taken Seriously TC Pipelines LP (NYSE:TCP) stock is a stock that pays a high dividend and continues to grow it over time. The company operates in the energy pipeline sector in North America, with its main.
OHI Stock: A High-Dividend Stock Yielding 7.93%
OHI Stock Is a Rock-Solid Healthcare REIT Chasing high-dividend stocks might not always be a rewarding experience. Sometimes a company’s yield is high simply because investors don’t believe those payouts will be sustainable. But this real estate investment trust (REIT).
MMM Stock: Why 3M Co’s Dividend Growth Matters to Investors
3M Stock: A Successful Dividend Growth Stock 3M Co (NYSE:MMM) is a company that invents products for the industrial, safety and graphics, electronics and energy, health care, and consumer industries. Founded in 1902, 3M has paid out its first dividend.
KO Stock: Is The Coca-Cola Co a Top Dividend Pick?
KO Stock: New Strategy Brightening Dividend Outlook The Coca-Cola Co (NYSE:KO) stock is one of those investments which has rarely gone wrong for investors seeking a stable dividend income. When I say this, I point to the company’s remarkable history.
Royalty Income: 5 Monthly Dividend Stocks Paying Up to 7%
Today, I’m going to explain how to earn royalty income from some of my top monthly dividend stocks. These yields are safe. You can get started today if you want to. Most people, though, don’t even know these opportunities exist..
Here’s Why Intel Corporation (INTC) Is Still a Top Dividend Stock
Intel Stock Is Surviving PC Industry’s Downturn In today’s bloated stock market, value is hard to find. That’s why when something as solid as Intel Corporation (NASDAQ:INTC) stock is having a pullback, income investors should pay attention. Okay, you might.
CenturyLink Inc: Is CTL Stock’s Dividend Yield Threatened?
CenturyLink Stock: Level 3 Deal Provides More Cash Centurylink Inc (NYSE:CTL) stock has been in hot water for long time, despite paying a market-beating dividend yield. Income investors have been questioning how long this telecom giant will be able to.
Is Senior Housing Properties Trust a Great High-Dividend Stock?
Earn More Than 7% from This High-Dividend Stock Time and time again, the real estate sector is one that pops up on investors’ radars. Real estate has many different ways of earning returns on one’s money; investors should focus on.
AAPL Stock: Is Apple Inc. About to Make a Huge Comeback?
Here’s Why You Should Take a Look at Apple Stock Right Now Consumers love Apple Inc.’s (NASDAQ:AAPL) products, but Apple stock doesn’t always get the same response from investors. Since last week’s earnings report, AAPL stock has slipped nearly four.
