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.
CVR Partners Stock: Come for 16% Yield, Stay for Market-Trouncing Gains
UAN Stock’s Outlook Bullish on Strong Industry Tailwinds Some companies’ names make you want to take a look under the hood, but CVR Partners LP (NYSE:UAN) isn’t one of them. Don’t be turned off by its boring name, though. The.
Outlook for Necessity Retail REIT Stock Robust After $1.3-Billion Acquisition
RTL Stock Has 80%+ Upside For the U.S., consumer spending accounts for about 70% of its gross domestic product (GDP). So, it’s fair to say that shopping is necessary for juicing the U.S. economy. When it comes to having a.
Black Stone Minerals Stock: Market-Crushing 7.8% Yielder Up 78% in 2022
BSM Stock’s Dividend Hiked 68% Year-Over-Year Thanks to a surge in commodity prices, oil and natural gas stocks have been a no-brainer over the last two years. It would be tough to find someone who actually lost money on oil.
CTO Realty Growth Stock’s Dividend Hiked for 10 Straight Years
Why Investors Should Take a Look at CTO Stock Interest rates will be on the rise for the foreseeable future as the Federal Reserve takes aggressive moves to combat stubbornly high inflation (sitting at 8.2% as of this writing). Investors.
Dorian LPG Stock Pays a Massive 35.7% Dividend Yield
Why LPG Stock Is Worth Watching Investing in ultra-high-yield dividend stocks is often about taking advantage of an ongoing opportunity—that is, investing in a bullish company that’s making lots of money and returning much of that money to its shareholders..
Bullish Case for 14.8%-Yielding MV Oil Trust Stock—Even During a Recession
MV Oil Trust Is Dependable at Rewarding Shareholders Investors love reliable, growing, ultra-high-yield dividends. What’s even better is a high-yield dividend stock with a bullish share price. It’s really the only time it’s OK to see a dividend yield go.
Enviva Stock Up 27% Year-Over-Year; Dividend Up 11%
Why EVA Stock Is Worth Considering There’s more to energy than oil, natural gas, coal, wind, and solar. In fact, the future of sustainable energy production may rest with woody biomass, a renewable energy source. Industrial wood pellets can be.
9.2%-Yielding Cross Timbers Royalty Stock Up 95% in 2022
Investors Should Take a Look at Cross Timbers Royalty Trust Interest rates continue to go up, inflation is still out of control, and the world is teetering on the brink of a global recession. Despite these macroeconomic headwinds, some stocks.
23%-Yielding VOC Energy Stock Hikes Dividend 137%
VOC Energy Trust Inc’s Outlook Bullish on Industry Tailwinds It’s often a good idea for investors to strike while the iron is hot. That’s certainly been the case with VOC Energy Trust (NYSE:VOC) and other energy stocks. Energy was the.
Eagle Bulk Shipping Stock: Undervalued 20.4%-Yielder Hikes Quarterly Dividend
EGLE Stock Could More Than Double Stocks have been cratering recently—even below their June lows, a level that Jim Cramer said would hold. And with the Federal Reserve determined to use additional interest rate hikes to get inflation under control,.
