These are trying times for investors who rely on dividends from share portfolios for income. Yet income investing can be an attractive strategy. "In volatile markets the most guaranteed part of your total return is not capital gains - it is dividend income,'' says the director of research at Bell Potter Securities, Peter Quinton. ''So we are seeing [it] become a lot more important than is normally the case."
Classic dividend-investing theory teaches the importance of buying shares in companies that are growing and boosting their dividend yearly. Quinton advises investors to seek stocks paying above-average yields and aim for companies unlikely to report a profit decline over the next two years. He stresses the need to check that the company offers adequate dividend cover - a ratio that tells how much after-tax profit is being used to finance dividends: a ratio of two times means half the profit is being paid in dividends.
Source: stuff.co.nz
Related Articles:
________________________________________________________________
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.