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.
DKL Stock: Bullish, Ultra-High-Yielder Hikes Payout Again
Outlook for Delek Logistics Bullish on Record Results Despite the energy sector facing recent headwinds, one great way for income-starved investors to play the industry is with Delek Logistics Partners LP (NYSE:DKL), a midstream master limited partnership (MLP) with growing.
Mach Natural Resources Stock: New Dividend-Payer Yielding 22.47%
Weak Oil Prices Presenting Opportunity The most volatile area of the energy business is the upstream segment, because revenues depend largely on the price of oil. When oil prices fall or are weak, upstream producers face more uncertainties given their.
LPG Stock: Outlook for 11.5%-Yielder Bullish on Industry Tailwinds
Dorian LPG Stock Has 46% Upside Potential Dorian LPG Ltd (NYSE:LPG) has been having a solid year, with its stock rising approximately 30% over the last year. LPG stock actually hit a new record high of $50.29 in late May,.
International Seaways Stock: A 11.7%-Yielder with Good Upside
A Juicy Yield for This Maritime Shipper Today’s focus pick is International Seaways stock. Countries around the world are always on the prowl for energy and chemicals. The transport of these key commodities is carried out via pipes, railways, and.
Brandywine Realty Stock: Outlook for 11%-Yielder Bullish on Interest Rate Cuts
BDN Stock’s on the Move It’s a good time to look at Brandywine Realty stock. With interest rates starting to decline, investors are starting to turn their attention to real estate investment trusts (REITs) like Brandywine Realty Trust (NYSE:BDN). High.
Cherry Hill Mortgage Stock: 16.9%-Yielder Has 40% Upside
Lower Interest Rates Should Benefit Cherry Hill Mortgage After holding its key lending rate at a two-decade high of between 5.25% and 5.5% for the last 14 months, the Federal Reserve just announced its first interest rate cut in more.
Hafnia Stock: Projected Forward Yield of 20.9%
Nice Dividend, Plus One Year Gain of 23.8% What’s to love about Hafnia stock? It’s always exciting when dividend stocks deliver dividend growth and capital appreciation. This is the ultimate goal of income investors—and it can be found in.
Saratoga Investment Stock: 12.4%-Yielding BDC Increases Quarterly Payout
Saratoga Investment Has Increased Dividend for 4 Years Some investments are designed specifically for income investors. I’m talking about stocks that exist primarily to reward investors with big dividends, which includes business development companies (BDCs). BDCs, or what we like.
Sixth Street Specialty Stock Yielding 10.12%?
Lower Rates to Benefit Sixth Street Specialty Lending The Federal Reserve is expected to cut interest rates well into 2025 as the central bank looks to achieve a soft landing for the economy. The push to reduce interest rates should.
BSM Stock: Outlook for 10%-Yielding Energy Play Remains Robust
Reasons to Be Bullish on Black Stone Minerals Stock What a difference a few months can make. Earlier this year, energy was one of the better performing sectors. Fast forward to the middle of September, and energy has the second.
