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.
Medical Properties Trust Inc. Yields 7.1% Over the next few decades, few businesses will mint more money than healthcare. Each year, more than 3.7-million baby boomers turn 65. That means more tests, more prescriptions, and more doctor visits. Medical Properties.
Earn a Double-Digit Yield from MCC Stock There’s no other way to put it: the U.S. stock market is bloated. Over the past 12 months, all three major indices have soared past their all-time highs. Consider this: the S&P 500.
Should Investors Consider This High-Yield Stock? In an era when a four-percent payout can be considered impressive, finding stocks with double-digit dividend yields often involves looking into the out-of-favor sectors of the market. CBL & Associates Properties, Inc. (NYSE:CBL) is.
T. Boone Pickens Earning a 7.7% Yield Billionaire T. Boone Pickens tops the list of the world’s greatest energy investors. The tycoon made a fortune through his oil business, Mesa Petroleum, through the 1960s. In the following decades, he expanded.
STAG Industrial Inc (NYSE:STAG): Alternative E-Commerce Investment Paying Monthly Dividends with a 5.0% Yield
This Company is Selling Shovels in the New Gold Rush In recent years, e-commerce has been one of the fastest-growing industries not just in America, but around the world. With many online shopping platforms posting dramatic increases in sales and.
A Top High-Yield Stock You Likely Haven’t Considered The hottest industries are not known for producing the highest-yielding stocks. The reason is simple: when people go after the most popular tickers, prices get bid up, causing their dividend yields to.
If You Were Born Before 1967, Read This How do I make decent yield on my savings? For thousands of Americans approaching retirement, this question keeps them wide awake at night. And you can’t blame people for worrying. After all,.
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Can You Trust This 14.8% Yield? About 25% of Wall Street analysts take medication for mental illness. That keeps me up at night. It means the other 75% go walking around untreated. For that reason, I always approach the latest.
Earn a Reliable Monthly Income For investors relying on portfolio returns to cover day-to-day expenses, few things are better than a steady stream of monthly dividends. Today, I’m going to show you a company that provides exactly that. The company.