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.
Diana Shipping Stock: 16.73%-Yielder for Contrarians
This Compelling Opportunity at 52-Week Low There’s a pretty compelling opportunity in the dry bulk shipping industry right now: Diana Shipping stock. The world’s shipping lanes transport dry bulk commodities across vast oceans. There is simply no other way to.
Omega Healthcare Stock: Interest-Rate Cuts Make This 7.2%-Yielder a Compelling Play
OHI Stock Hits New Record High Interest-rate cuts are coming. Granted, the Federal Reserve probably won’t start cutting interest rates when it meets at the end of July, but Wall Street is 100% certain the Fed will announce its first.
Alexander’s Stock: Market-Crushing Ultra-High-Yielder Up 19% in 2024
NYC Landlord, Alexander’s, Inc., Has Reliable Dividend For those who want to invest in real estate but don’t want the hassle, there are opportunities like Alexander’s stock. Most real estate investment trusts (REITs) have taken a beating in the high-interest-rate.
Gladstone Commercial Stock: 8.22%-Yielder Up 12% in 2024
Geared to Monthly Income Investors Have you ever considered a real estate investment trust (REIT), like Gladstone Commercial stock? The recent years of high interest rates proved difficult for companies buying and operating high-cost, fixed assets. High financing costs cut.
FS KKR Stock: Bullish 13.7%-Yielder Trading at Record Levels
FS KKR Capital Corp Poised to Announce Another Special Dividend? Growing, cash-strapped companies like business development companies (BDCs), because they are a source of much-needed capital to expand their businesses. A lot of well-known companies or web platforms have.
Ramaco Resources Stock: 8.62%-Yielder with Great Upside
A Contrarian Opportunity for Income Investors There’s some significant potential with Ramaco Resources stock. High-quality metallurgical coal is a critical input used to produce steel-based critical materials. With the expected build-up of the country’s crumbling infrastructure, I expect the demand.
Postal Realty Trust Inc: Ultra-High-Yielding REIT Increases Dividend
PSTL Stock Has 6 Years of Increasing Dividends Rising interest rates are not great for real estate investment trusts (REITs) because they increase the cost of borrowing and eat into profit margins. And REITs borrow a lot of money to.
TXO Partners Stock: 10.6%-Yielder Has 25% Upside Potential
TXO Partners LP Reports Q1 Earnings & Revenue Beat TXO Partners stock is a potential opportunity that shouldn’t be overlooked. The world is transitioning to green energy, but the fact remains that we still need oil and gas, with the.
Altria Stock: 8.12%-Yielder Outperforming the Nasdaq
Altria Stock Paying Dividends for 54 Years There’s a dividend-yielding sin stock I’d like you to take a look at: Altria stock. The world has taken a tough stance against tobacco companies, citing the health risk. From added taxes on.
Horizon Technology Stock: Get Paid Monthly From This Bullish 10.6%-Yielder
Horizon Technology Finance Corp Pays Special Dividends Today’s focus pick is Horizon Technology stock. We like business development companies (BDCs) like Horizon Technology Finance Corp (NASDAQ:HRZN), because they provide financing for exciting and often-overlooked small- and mid-sized companies. And for.