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.
Gaming and Leisure Properties Inc: 5.7% Yielding Stock Resumes Dividend Hikes
GLPI Stock Raises Its High-Yield Dividend On Wall Street, there are periods of fallow and fruitful. For income investors, it’s been the former—for a long time. During the 2008 financial crisis, the Federal Reserve sent short-term interest rates to near-zero..
Fear Rising Interest Rates? Check Out This 8.3%-Yielding Stock
This High-Yield Finance Stock Looks Interesting If you’ve been following the markets lately, you’d know that investors have been paying a lot more attention to the U.S. Federal Reserve than before. The reason is simple: with the economy entering the.
Icahn Enterprises LP: 14.4%-Yielding Dividend Stock Poised for Big Gains
Icahn Enterprises Stock Dividend to Rise on Strong U.S. Growth? Investors love to follow the smart money. Invest like Warren Buffett and maybe you’ll get rich like him. The big complaint about Buffett and his company Berkshire Hathaway Inc. (NYSE:BRK.B).
Prospect Capital Corporation: Reliable 8.1% Dividend Paid Monthly
Prospect Capital Stock: Stable, High-Yield Dividend & Rising Share Price With interest rates still hovering near zero, the best thing income-starved investors can do is hunt down reliable, high-yield dividends. Getting quarterly dividends is a great way to supplement your.
Royal Bank of Canada: 3.5% to 5.9% Yield From This Top Foreign Bank
Looking for Reliable Dividends? Read This Long-time readers of Income Investors would know that the big Canadian banks are some of the best-kept income secrets in today’s stock market. They have a track record of paying reliable dividends through thick.
Mobil’nye Telesistemy PAO: 8.5%-Yielding Telecom Stock to Pay Next Dividend in July
Mobil’nye Telesistemy Holds Leading Positions in All of Its Markets To find frothy dividends, sometimes investors have to look outside their own borders. For example, there are many great Canadian oil and gas companies that provide reliable, high dividend yields..
MPLX LP: The Best 9% Yielder on the Market?
This High-Yield Energy Stock Could Be Special Every income investor wants to earn a high dividend yield. But the blunt reality is, the higher up you go on the yield ladder, the less safe the payout generally becomes. After all,.
Ellington Residential Mortgage REIT: 8.7%-Yielding Stock Raises Dividend
EARN Stock Is in Record Territory Despite rising long-term interest rates, a steepening yield curve, and increased interest-rate volatility, Ellington Residential Mortgage REIT (NYSE:EARN) has performed well since the start of 2021. As of this writing, Ellington Residential Mortgage stock.
MV Oil Trust: 12.8%-Yielding Energy Play Up 132% in 2021; Raises Dividend
MVO Stock Could Be Worth the Risk/Reward Trade-Off You can’t judge a book by its cover. You also can’t judge a stock by its company’s web site. Take, for instance, Berkshire Hathaway Inc. (NYSE:BRK.B). The $660.0-billion multinational run by Warren.
Hercules Capital Inc Up 67% Year-Over-Year; Still Yields 7.4% (& Perhaps More!)
This High-Yield Stock Could Be Special As income investors, we know that, at any given cash payout, a company’s dividend yield moves inversely to its stock price. So after seeing Hercules Capital Inc (NYSE:HTGC) enjoying a 67% increase in share.
