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.
ARI Stock Is Offering a High Dividend Yield of 10.3%
Is This High-Dividend-Yielding Stock Worth an Investment? Inflation is a concern for any long-term investor, since it decreases the purchasing power of a currency. The best method for protecting capital from inflation is to own an investment which grows as.
FSIC Stock: Shareholder-Friendly and Offering a High Divined Yield of 10.8%
FSIC is a Top Dividend-Yielding Stock One method of beating the average return seen on the markets is with companies which are largely underowned. One such business will be the focus of today’s article: it trades at a cheap valuation,.
Earn a 12.5% Yield From America’s Next Commodity Boom
These Dividend Stocks Yield Up to 12.5% If you want to earn lucrative dividend income over the next few years, then you need to know about these two numbers. First, look at natural gas prices in the U.S., where you.
NCMI Stock: A Little-Known Dividend Stock with a 15.5% Yield
Should Investors Consider This High-Yield Stock? Today’s highlight is a high-dividend stock that’s currently offering a 15.5% yield. The company is National CineMedia, Inc. (NASDAQ:NCMI), which may not be a familiar name to most income investors. However, if you went.
MMP Stock: The Best Energy Play That You’ve Never Heard of
Earn a 5.1% Yield from This Top Dividend Stock Today’s column highlights a top dividend stock from the energy sector. While headlines in the oil and gas industry are yet to become cheerful, this company has been churning out returns.
Collect a 11.8% High Dividend Yield from WPG Stock
Earn a 11.8% High Dividend Yield In the current low-interest-rate environment, it can be very difficult to find an income-oriented investment providing a high rate of return. I have found a high-quality investment that is offering an 11.8% yield. With.
CTL Stock Is Offering a High Dividend Yield of 11.9%
CTL Rewards Its Shareholders With a High Dividend Yield In order to achieve capital preservation and steady income from an investment, a high-quality company with very predictable earnings is best. One segment that is great at fulfilling this need is.
KIM Stock: 2 Reasons to Own This High-Dividend Stock
A Top High-Dividend Growth Stock Have you always wanted to invest in commercial real estate, but never had the funds to do so? Well, there is a stock that will provide exposure to the sector without needing a large sum.
NLY Stock: 3 Reasons to Be Bullish on This 9.7% High Dividend Yield
Collect a 9.7% High Dividend Yield From NLY Stock With any high-dividend-paying stock, there are three important areas to look at before deploying any capital: its dividend payout, its profitability, and the company`s valuation. This is no different for Annaly.
GOV Stock: A 9.3% Income Stream From “Uncle Sam”
Tax Loophole Yields 9.3% “Rob, low interest rates destroyed my retirement,” my friend Patrick complained. “For most of my life, you could always find a good yield somewhere. If the wife and I could earn a safe five percent, we’d.
