Dividends4Life: Wal-Mart's Dividends May Not Last Forever

Dividend Growth Stocks News

Wal-Mart's Dividends May Not Last Forever

Posted by D4L | Friday, August 27, 2010 | | 0 comments »

Whether you're a beginning investor or a near-retiree, the importance of purchasing stocks that pay dividends cannot be overstated. Not only do companies that have quarterly or annual payouts provide you with a steady stream of income, they also have the potential for capital appreciation. Simply put, dividend stocks can give your portfolio what almost no other investment can -- both income and growth.

Wal-Mart Stores' payout ratio seems to be above the peer average, which means if you're a prudent investor, you may want to look elsewhere for the most secure payment possible. Of course, this entire group of companies looks very attractive from a sustainability perspective, so I don't foresee any problems for any of the stocks. The bottom line, however, is to make sure that with anything -- whether it be a dividend, a share repurchase, or an ordinary earnings report -- you do your own due diligence. Looking at all of the numbers in the best context possible is just the best place to start.

Source: MSNBC

Related Articles:



Post a Comment

Note: Only a member of this blog may post a comment.