Dividend yields and price-to-earnings multiples are often used as initial starting points when creating a portfolio. Because current market conditions are unstable, as everything from the price of oil to the valuation of the financial sector is constantly contradicted by prominent research reports, investing in cheap, high dividend-paying stocks may be an ideal approach until the future becomes clearer.
High dividend yields are typically achieved by investing in closed-end funds, real estate investment trusts, utility companies and royalty trusts, while pharmaceuticals and technology corporations, for example, usually pay only a modest dividend as they use most of their earnings to fund expansion. Yet, the pharmaceutical PDLI BioPharma maintains their dividend policy to yield 16.1%. Although this is largely due to the decreased share price resulting from continued revenue shrinkage, managements' refusal to cut dividends indicates their belief of prosperity in upcoming periods.
Source: Investopedia
Related Articles:
Finding Value With Cheap Dividends
Posted by D4L | Tuesday, April 27, 2010 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
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...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.