Dividend investing is all the rage. And what's not to love? Getting those four (typically) payments each year feels great for investors. It gives you a tangible affirmation that you're actually getting something out of owning those little pieces of paper sitting in your brokerage or retirement accounts. And beyond the positive affirmation those payments provide, research indicates that companies that pay dividends outperform the market. All in all, dividend investing seems likes an ironclad road to riches.
A high yielder can become deadly when its payout is so high, the company can't afford it anymore. When a company's payout ratio begins to rise about 75%, it's worth taking note. Such a high payout ratio means that the company in question pays more than three-quarters of its income out to owners. While this might sounds like an investor's dream (and not always a negative), such practices can also give companies very little breathing room in running their businesses, especially since evidence indicates firms will often go to destructive lengths to avoid cutting their dividends.
Source: Motley Fool
Related Articles:
- Finding Low Risk Dividend Stocks
- Why We Are Dividend Growth Investors
- What Determines A Dividend Stock's Yield
- Managing Risk With Dividend Stocks
- 9 Stocks With a Sustainable Dividend
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.