Some see this golden age of dividend investing ending. Companies are taking on debt—and using it to reward shareholders rather than invest in their business and expand it further. But we’re talking about the market as a whole—some companies have done well and some haven’t. Many companies in the energy sector slashed or eliminated dividends entirely during the oil bear market of the past two years. But, if you know where to look, there’s still plenty of opportunity to invest in quality, income-producing stocks. While the average S&P 500 stock trades at 24 times earnings, closing in on bubble territory, there are still many individual oversold opportunities.
What do I like in the dividend space? Income growth. A company that can consistently raise dividends year over year is likely to be the kind of company that has other characteristics that make it worth owning for the long haul for growth prospects as well. What’s more, dividend growth is easy for investors to understand. It means an increasing amount of cash coming your way every year. It’s not like a company’s earnings growth or share price growth, which can fluctuate wildly. It’s a more consistent growth, provided you’re willing to buy for the long haul. It’s a golden age of investing. And while it might be under pressure from rising interest rates, if you’re investing in the right space, regulatory and tax reform could lead to substantial increases in payouts over the next few years.
Source: Newsmax
Related Articles:
- 4 High Yield, High Risk Dividend Stocks
- 5 Dividend Stocks To Buy And Hold, Not Buy And Forget
- All Investments Carry Risk
- Warren Buffett's Two Investing Rules For Dividend Investors
- Dividend Stocks vs. Dividend ETFs
It's Still a Golden Age of Dividend Investing
Posted by D4L | Tuesday, February 14, 2017 | 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.