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.
MPLX Stock: Inflation-Trouncing 9.5%-Yielder Raises Payout Again
MPLX Stock Has Been Soaring Since March 2020 2022 was one of the worst years for the S&P 500, which ended the year flirting with a bear market. That wasn’t the case with energy stocks, though. They rallied by approximately.
Enterprise Products Stock: 7.8%-Yielder Has Raised Payout for 24 Consecutive Years
Why EPD Stock Is Worthy of Investors’ Attention Enterprise Products Partners LP (NYSE:EPD) might have a nondescript name, but it was one of the best-performing, ultra-high-yielding energy stocks of 2022. The company is a leading North American provider of midstream.
2023 Dividend Aristocrat List
These S&P 500 Stocks Are Dividend Aristocrats The year 2022 was miserable for stock investors, with the S&P 500 having one of its worst years and the Nasdaq falling deep into bear-market territory. Even the stable, boring Dow Jones Industrial.
Plains All American Pipeline Stock: Outlook for 7.5%-Yielder Bullish in 2023
Why PAA Stock Could Keep Rewarding Investors Energy stocks have been the biggest winners over the last two years, and they could outperform the broader market again in 2023. In 2022, the energy component of the S&P 500 rallied by.
Cross Timbers Royalty Stock: Bullish 8.8%-Yielder Went Up 120% in 2022
CRT Stock Pays Monthly Distributions In the current economic climate, with decades-high inflation and rising interest rates weighing down stocks, it’s tough to find equities that are worth investing in. And with the odds of a recession shaping up, it.
Star Bulk Carriers Stock: Shares of 33.3%-Yielder Up 20% Year-Over-Year
SBLK Stock Should Be on Investors’ Radar Star Bulk Carriers Corp. (NASDAQ:SBLK) is a marine shipping company I’ve been following closely all year—for good reason. The company makes a lot of money and has a low payout ratio. Star Bulk.
New Fortress Energy Stock Gives Dividend Hogs a Big Pay Raise
NFE Stock’s Quarterly Payout Hiked to $3.00/Share It’s nice when companies with high-yield dividend stocks make their shares even more attractive. New Fortress Energy Inc (NASDAQ:NFE), a regulated natural gas company, has been having a great year. Thanks to high.
2023 Monthly Dividend Stock List
These Dividend Stocks Pay Investors Each Month Dividend stocks are a great way to juice your bank account with regular income. This was especially true in 2022, with inflation at decades-high levels and rising interest rates sending stocks significantly lower..
5 Top Health-Care Dividend Stocks for 2023
Why Health-Care Dividend Stocks Are Appealing Right Now When it comes to finding excellent stocks that pay reliable dividends, one of the best places to look is the health-care sector. Health-care stocks are usually found in a diverse investment portfolio.
Camping World Stock: 10.3%-Yielder Reports Strong Q3 Results
Why Investors Should Pay Attention to CWH Stock Consumer cyclical stocks are economic bellwethers. If the economy is doing well, people are more than happy to spend their discretionary income or take on debt to buy things. When the economy.