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.
AMID Stock: AMID Offers a 11.7% Dividend Yield
A Solid Dividend from AMID Stock The energy industry is known for its low of market volatility. And within the energy market, the midstream sector produces a steady stream of income and preserves capital at the same time. One company.
BRG Stock: Earn a Monthly Income with a 10.7% Yield
1 Monthly Dividend Stock for Income Investors Apartment buildings can be great income investments. Because people always need a place to live, apartment buildings in populated areas can provide investors with a steady stream of income. However, those things aren’t.
GPC Stock: 61 Years of Dividend Increases from an Auto Stock?
This Auto Stock Deserves Income Investors’ Attention In this article, we are going to take a look at a company with one of the longest dividend increase streaks in America: Genuine Parts Company (NYSE:GPC). Headquartered Atlanta, Georgia, Genuine Parts Company.
GNL Stock: Rewards Its Investors with a 9.7% High Dividend Yield
GNL Stock: Top High-Dividend-Yielding Stock A common practice by companies that pay out a dividend is to do so quarterly. However, there is a small group of stocks that don’t follow this tradition, rewarding investors on a monthly basis. Today’s.
WMC Stock: Don’t Ignore This 11.8% High-Dividend-Yielding Stock
WMC Stock is a Top High-Dividend Stock Western Asset Mortgage Capital Corp (NYSE:WMC) stock features a high dividend yield of 11.8%. Is that enough to warrant an investment? Or is there more to this stock than meets the eye? One.
MMLP Stock: Overlooked Dividend Stock with a Huge Yield of 12.5%
Why Investors Should Consider This High-Yield Stock In today’s bloated stock market, the most well-known companies rarely offer a yield of more than five percent. But if you are willing to dig into the not-so-popular sectors, you just might find.
GMLP Stock: The Safest 10.1% Yield Available Today
Who Else Wants a Safe 10.1% Yield? Generally, big yields come with big risk. Some stocks grab your attention with their double-digit payouts. But the second you dig into their financials, you see why the smart money unloaded their shares..
Dividend Stocks: 3 Communications Infrastructure Stocks Yielding Up to 16.7%
These Dividend Stocks Yield Up to 16.7% If you are looking for reliable dividend stocks with oversized yields, then you need to check out one industry: communications infrastructure. Today’s wireless carriers make a lot of money. Just take a look.
Welltower Inc (NYSE:HCN): The Best Real Estate Play for the Next 50 Years?
HCN Stock: Income Investment with Huge Upside Potential We’ve all heard of someone getting rich from real estate. However, most of these stories involved an investor owning some land or properties to begin with. And those things aren’t cheap. Today,.
GAIN Stock: Collect Monthly Dividends with an 8.2% Annual Yield
A High-Yield Monthly Dividend Company Today’s chart highlights a monthly dividend stock with an 8.2% annual yield. I’m looking at Gladstone Investment Corporation (NASDAQ:GAIN), a business development company (BDC) headquartered in McLean, Virginia. Gladstone invests in lower-middle-market businesses in the.
