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.
Bullish, 4.6%-Yielding Iron Mountain Stock Up 19.5% Year-Over-Year
IRM Stock Up in Price & Still Has Room to Run Iron Mountain Inc (NYSE:IRM) is an excellent high-yield dividend stock that’s often derided by online talking heads as being overpriced and ripe for a pullback. But frankly, the pessimism.
These 5 Blue-Chip Stocks Pay the Best Dividends
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Inflation-Busting, 16.1%-Yielding VOC Energy Stock Up 116% in 2022
VOC Energy Trust Hikes Q3 Dividend 82% Year-Over-Year The only time I’m okay seeing a stock’s growing, ultra-high dividend yield slip is when the stock’s underlying share price is rising at an even faster clip. That’s what’s been going on.
AFC Gamma Stock: Pot REIT Smokes Inflation With 13.2%-Yielding Dividend
AFCG Stock’s Dividend Jumps 30% Year-Over-Year Since marijuana is still illegal in the U.S. at the federal level, it’s tough for American cannabis companies to access traditional banking services. Most U.S. banks won’t touch marijuana companies because of the risks.
Investors Can Enjoy the Ride With 27.3%-Yielding BP Prudhoe Bay Royalty Stock
BPT Stock Up by 343% in 2022 Oil prices have fallen from their June highs around $120.00 per barrel, but they’re still holding near $80.00, their lowest level since January. Despite a looming recession and conflicting information about whether the.
These 7 Stocks Pay the Highest, Most Reliable Monthly Dividends
Investors Can Put a Dent in Inflation With Stocks That Pay Monthly Dividends Inflation remains near 40-year highs and Americans are struggling with rising costs. As of September, a whopping 63% of Americans were living paycheck to paycheck. It’s not.
Global Net Lease Stock Is a Reliable 12.4%-Yielding Global REIT Stock
Why GNL Stock Should Be on Investors’ Radar With interest rates on the rise, many investors are spooked by real estate investment trusts (REITs) right now. While rising interest rates can certainly be bad for some mortgage-backed REITs, many commercial.
San Juan Basin Royalty Stock: Investors Come for the Share-Price Gains, Stay for the 14.4% Yield
SJT Stock Pays Ultra-High-Yield Dividends Monthly Everyone knows the energy sector is one of the best places to be right now (unless you’re Al Gore or Robert Kennedy Jr.). And when it comes to outsized stock market gains and ultra-high-yield.
3 Overlooked High-Yield Consumer Defensive Stocks to Help Tackle Inflation
Consumer Defensive Stocks Are Resilient As recession fears grow and Americans look to reign in their spending, consumer defensive stocks have come back in focus. These are the stocks of companies that sell products and services that are considered essential..
Office Properties Income Trust Stock Pays Reliable, Inflation-Crushing 14.1% Yield
Why OPI Stock Is Attractive Real estate investment trusts (REITs) can provide lucrative dividends to investors. The key is to find REITs that have the best tenants. When it comes to having tenants with deep pockets, few REITS could do.
