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.
TJX Stock is Up 3% TJX Companies Inc (NYSE:TJX) stock is up just over three percent. Shares for the discount retailer space are currently trading at $75.77, which is a rise of $2.28. This can be attributed to the earnings.
TGT Stock is Up 8% After reporting earnings, Target Corporation (NYSE:TGT) stock popped eight percent. The shares are currently trading at $77.22, which is an increase of $5.79. Target reported earnings of $1.06, which were on the top end of.
Procter & Gamble Stock Delivering 126 Years of Uninterrupted Dividends Dividend investors love Procter & Gamble Co (NYSE:PG) stock. It’s a great “set-and-forget” type of investment. And right now might just be the best time to own it. For the.
Upside for BAC Stock? Over the last month, shares of Bank of America Corp (NYSE:BAC) stock have risen 20%. The question to ask going forward is: “Will there more upside going forward, or are all the positive catalysts built into.
Upside For KMI Stock? Kinder Morgan Inc (NYSE:KMI) stock has many shareholders, some of which would be considered “smart money.” By that, I am referring to billionaires that are money managers, including the smartest investor of all time: the “Oracle.
Intel Stock Is Delivering Big Returns I don’t usually talk about tech companies in my dividend column, but there are a few exceptions. One of them is Intel Corporation (NASDAQ:INTC) stock. Intel is far from being the hottest name in.
Top Dividend: This Stock Provides a Market-Beating Return The space for investors seeking a top dividend yield is very limited. The majority of high-dividend stocks are either risky bets either in the energy space or real estate income trusts (REITs)..
George Soros Bought 1.78 Million Shares of Barrick Gold Stock Barrick Gold Corp. (NYSE:ABX) stock hasn’t exactly been a hot commodity in recent months. But it could get some attention now, as billionaire investor George Soros more than doubled his.
Yesterday, after the market closed, the 13F filings were released by the U.S. Securities and Exchange Commission. This form is completed by investment managers in the U.S. that have over $100.0 million in qualifying assets. The information on the 13F.
Buffett’s Berkshire Buys 4.53 Million Shares of United Airlines Stock Billionaire investor Warren Buffett is not known for being an investor in the airline industry. But now, his company has just disclosed a sizable stake in United Continental Holdings Inc.