Dividend investing is changing. Over the past decade, many dividend-paying companies have slowly trended away from paying traditional dividends. Don't get me wrong, many long-time dividend payers will keep paying and growing their dividends into the future. But certain ones are starting to reward shareholders in two other, more tax-friendly ways. Fortunately for investors, these two hidden, "extra payments" could be much more valuable than traditional dividends alone.

It's the single best way I know to get market-beating returns from your dividend stocks. It's called Total Yield investing. I call it that because it looks at all the ways a company rewards shareholders. This not only includes dividends, but also accounts for two other "extra payment" metrics: stock buybacks and debt paydown. You're familiar with how dividends work. If you invest $100 into a stock with a 10% dividend yield, you can expect to receive $10 in dividends (or 10%) a year from that investment. The other two "yields" are a bit more complex. The data to calculate these yields isn't posted blatantly like a dividend yield is on a stock ticker page. Instead, we must find this data deep with a company's financials.

Source: NASDAQ

Related Articles:
- 6 Dividend Stocks To Beat The Wall Street Giants
- First Quarter 2013: Top And Bottom Performing Dividend Stocks
- A Disciplined Approach To Dividend Stocks
- 3 Higher-Quality, High-Yield Dividend Stocks
- 13 Dividend Growth Stocks With A Good Yield/Growth Mix

Click here to have future posts delivered to you for free!

_____________________________________________________________________

1 comments

  1. DivHut // May 21, 2014 at 2:38 AM

    Will you explain more about Total Yield investing and how we can find this data?

Post a Comment

~

Latest From Dividend Growth Stocks

Popular Posts Last 30 Days