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.
High-Dividend-Yielding 3M Co Lifts Payout for 64th Consecutive Year
3M Stock Ideal for Long-Term, High-Yield Dividend Growth For the most part, the stock market sell-off has been broad-based. Even so-called recession-proof stocks, such as consumer discretionary stocks, have been taking a beating. The big plunge has many bottom-feeders looking.
10.8%-Yielding BP Prudhoe Bay Royalty Trust Hikes Dividend 86%
BP Prudhoe Bay Royalty Stock’s Dividend & Price Have Been Soaring BP Prudhoe Bay Royalty Trust (NYSE:BPT) might be a contender as one of the best stocks when it comes to income and growth. BP Prudhoe Bay Royalty is the.
Campbell Soup Company Stock: Consumer Defensive Stock Up 23% After Strong Q2
Campbell Soup Company’s Outlook Is Bullish Even with inflation soaring to 40+ year highs, some investors would rather trade an ultra-high-yielding dividend stock for a wide-moat business stock that provides both reliable dividends and high capital appreciation. That’s not a.
Falcon Minerals Stock: Oil & Gas Stock Up 52% YTD; Dividend Up 80%
FLMN Stock Is Bullish on Record Oil Prices As the old investing adage goes, don’t fight the trend. If the market wants to go higher, don’t bet that it will fall (and vice versa). It’s not foolproof—some contrarian investors have.
British American Tobacco PLC: 7.2%-Yielding Sin Stock Up 11% YTD
Kick Inflation to the Curb With British American Tobacco Stock If you love investing in socially conscious stocks, British American Tobacco PLC (NYSE:BTI) might not be up your alley. But if you like stocks that have been doing well during.
EPD Stock: 6.9%-Yielding Energy Play Up 20% YTD; Raises Dividend for 23 Straight Years
Why Enterprise Products Partners L.P. Is Compelling Energy stocks tend to fluctuate in relation to where we are in the economic cycle. When we’re in a recession, the demand for oil and natural gas falls, and often, so do the.
Green Plains Partners Stock: Reliable 12.2%-Yielder Hikes Dividend for 3rd Straight Quarter
Green Plains Partners LP Diversifying Its Operations The yield on a U.S. 10-year Treasury Note is at three percent, slightly higher than it was a year ago but still pretty miserly. It’s especially low when you consider that inflation is.
IIPR Stock: Undervalued 4.8%-Yielding Pot Stock Hikes Dividend 33%
Wall Street Says Innovative Industrial Properties Stock Can Double Again For investors who missed out on the spring 2020 stock market rally—or those who want to take advantage of a pullback— now might be the perfect time. For cannabis investors.
What Sell-Off? 4.9%-Yielding VICI Properties Stock Near Record Price
Why VICI Properties Inc Is Bullish The lower a dividend stock falls in price, the higher it rises in dividend yield. These days, finding a high-yield dividend stock isn’t difficult. What’s getting tougher to find, though, are bullish, high-yield dividend.
NexPoint Real Estate Finance Inc: 8.8%-Yielder Reports Q1 Earnings Beat
NREF Stock Price Up 24% & Dividend Up 5.3% Year-Over-Year Inflation is on pretty much everyone’s mind these days—and for good reason. U.S. inflation hit 8.5% in March, its highest level since 1981. (Source: “Consumer Price Index Summary,” U.S. Bureau.
