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.
Iron Mountain Stock: Market-Crushing 4.5%-Yielder Reports Record Revenue
Why IRM Stock Is Trading at Record Levels Iron Mountain Inc (NYSE:IRM) is a great stock I’ve been following for a number of years now. It’s one of those dividend stocks that most people don’t seem to really talk about,.
Easterly Government Properties Stock: Uncle Sam’s Landlord Pays 7.7% Dividend
Why DEA Stock Is Attractive Right Now Equity real estate investment trusts (REITs) are only as strong as their tenants. When times are good, REITs have no problem collecting rent, but when their tenants are slammed by a recession, pandemic,.
VICI Properties Stock: Bullish Sin Stock’s Dividend Hiked for 6 Straight Years
Why VICI Stock’s Outlook Is Bright It never hurts to look at industry statistics when considering a stock. The last thing you want to do is invest in a company that operates in an industry that’s taking a beating or.
Realty Income Corp Stock: 634th Consecutive Monthly Dividend
Why O Stock Should Be on Investors’ Radar Whether you’re new to dividend investing or a seasoned pro, it’s always good to familiarize yourself with different types of dividend stocks. For example, there are companies that pay ultra-high-yield dividends that.
Big 5 Sporting Goods Stock: Debt-Free 12.4%-Yielder Has 35%+ Upside
BGFV Stock Up 180%+ From Pre-Pandemic Level Big 5 Sporting Goods Corp (NASDAQ:BGFV) is an undervalued specialty realtor that has a great amount of long-term potential. The company has a rock-solid balance sheet, it plans to open new stores, and—despite.
Undervalued, 5.4%-Yielding Hasbro Stock Has 75% Upside
HAS Stock Is a Great Contrarian Play for Patient Investors There are opportunities on Wall Street that stock investors take advantage of because the underlying companies are doing exceptionally well. As the old adage goes, don’t fight the trend. But.
Global Partners LP Stock: 8%-Yielder Hikes Payout for 5 Straight Quarters
Why Investors Should Watch GLP Stock Global Partners LP (NYSE:GLP) has everything going for it right now. The midstream energy company is enjoying high oil and gas prices, it reported record 2022 results, it’s expanding its operations, it has increased.
Camping World Stock: Undervalued 11.6%-Yielder Has 58% Upside
Why Wall Street Is Bullish on CWH Stock Camping World Holdings Inc (NYSE:CWH) is a consumer cyclical company whose stock is being held back by perceived economic headwinds, fears of a recession, rising interest rates, and pessimistic investor sentiment. That.
Pembina Pipeline Stock: Growing, High-Yield Dividend Stock Reports Record Results
Undervalued PBA Stock Has 25.5% Upside & Pays High-Yield Dividends Oil and natural gas stocks may not be as exciting as technology stocks, but when it comes to industries that are operating in their sweet spot, few can compete with.
5.6%-Yielding Gaming and Leisure Properties Stock: Special Dividends & Record Q4 Results
GLPI Stock Up 18.6% Year-Over-Year While the tourism industry took a hit during the COVID-19 pandemic, the gaming industry held up pretty well—in spite of quarantine orders. That doesn’t mean gaming stocks like Gaming and Leisure Properties Inc (NASDAQ:GLPI) weren’t.