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.
United Maritime Corp: 12.4%-Yielder Up 17.7% Year Over Year
Could United Maritime Stock Have 149% Upside Potential? There are a lot of reasons for investors to be bullish on the dry bulk shipping company United Maritime Corp (NASDAQ:USEA). The global shipping industry has performed well in 2024, fueled by.
Main Street Capital Corp: High-Yielding Alternative Bank Crushing Broader Market
Main Street Declares 12th Consecutive Special Quarterly Dividend There are a lot of reasons why investors should keep Main Street Capital Corp (NYSE:MAIN) on their radar. Traditional financial institutions, like the big banks, and other lenders, like business development companies.
Oaktree Specialty Lending Stock: An Aggressive 13.37%-Yielder
A Contrarian Opportunity with 17 Years of Dividends Today’s focus pick is Oaktree Specialty Lending stock. Tight lending restrictions often make it difficult for many companies and consumers to have access to capital. Add in the current period of higher.
NHTC Stock: 14%-Yielder Up 18.2% Over Last Year
Why I’m Bullish on Natural Health Trends Corp. Multi-level marketing companies (MLMs) are often frowned upon by some as an outdated pyramid scheme that only benefits those at the top. But the appeal of making passive income is not lost.
Torm PLC: Shares of 18.7%-Yielder Trumping Broader Market
Bullish TRMD Stock Has 50% Upside There are a lot of reasons to be bullish on today’s top income pick, Torm PLC (NASDAQ:TRMD). Despite the inherent volatility of oil and gas prices and the move toward greener, more renewable energy.
CRT Stock: This Bullish 10.8%-Yielder Pays Monthly
Cross Timbers Royalty Trust Stock Up 20% Over Last Month Recent volatility has been bullish for energy stocks like CRT stock, with the sector turning bullish almost overnight. In September, energy had the worst one-year performance (-4.59%), hampered by weakening.
Ardagh Metal Stock: 10%-Yielder Reports Strong Q2
AMBP Outlook Bullish on Industry Tailwinds There’s good reason to take a look at Ardagh Metal stock today. One of the most important parts of selling any product is the packaging. Not only does it help protect and preserve, but.
Dorchester Minerals Stock Yielding 10.58%
DMLP Stock Up 80.2% Over Last 5 Years Domestic oil prices broke above $70.00 a barrel on the escalation in the Middle East. Add in the hurricane impact on Florida’s gulf coast and you have supportive factors. The spot price.
FLEX LNG Stock: An 11.27%-Yielder for Contrarians
Maritime LNG Shipper Up 167% Over Last 5 Years Today’s we’re taking another look at FLEX LNG stock. Liquefied natural gas (LNG) is natural gas that is cooled down to liquid form for easier transportation. The benefit is that LNG.
Kimbell Royalty Partners LP: 10.4%-Yielder Closing in on Record High
Kimbell Royalty Has Never Missed a Quarterly Payout The sentiment surrounding the energy sector and oil and natural gas exploration and production (E&P) companies like Kimbell Royalty Partners LP (NYSE:KRP) has turned bullish overnight. Energy has been one of the.
