I much prefer dividend-paying stocks to fixed income instruments such as CDs and bonds. I have a portfolio of 25 dividend-paying stocks designed for income-oriented investors. The yield on that portfolio is around 3.1%, which is higher than the CD rate and the 10-year treasury rate. In addition to the income component of the portfolio, investors also have a chance to participate in capital appreciation.
One name in my income portfolio of dividend-paying stocks is Wells Fargo (NYSE:WFC). Not only has Wells Fargo stock beat the 6.8% return of the bond market over the last 5 years, it has also beat the S&P 500 Index, gaining more than 20.1% over that time period. Over the last 3 years, its outperformance has been even better, posting a 3-year average return of 25.6% relative to the S&P 500 Index return of 13.5%. Over the last 12 months, Wells Fargo stock is up 26.6% and its year-to-date return is almost 16%. It has been a top performer in the market.
Source: Seeking Alpha
Related Articles:
- 6 High-Yield Dividend Achievers With 25 Years of Increases
- Investments That Pay Monthly Dividends
- 12 Higher Yielding Stocks With A Low Dividend Payout Ratio
- Early Warning Signs of a Dividend Cut
- Income Annuities vs. Dividend Stocks
Why I Prefer Dividend-Paying Stocks
Posted by D4L | Thursday, July 31, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
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 ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.