In the boom days before the credit crisis, recession and general market uncertainty, many claimed the dividend was dead. After all, who cares about a 6% annual dividend when your stocks are making 25% to 50% gains a year? That changed, and an extra 6% in reliable cash became a necessity, but companies were cutting dividends to make up for lost revenues. We’ve now come full circle, and with the indexes up 70% from their 2009 lows, the question has become: What place does a dividend have in your portfolio?
A high yield can be a sign that the company is in trouble and won’t be able to keep its dividend intact, which means it will likely cut its payments. More than yield, you want to look at the company as a whole and the history of dividend payments. If a company has consistently made its dividend payments for years and has steadily raised those payments, you have a better bet of finding a strong company with a dividend you can bank on.
Source: InvestorPlace
Related Articles:
Dividend Stocks Can Work for You
Posted by D4L | Monday, November 01, 2010 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
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...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A select group of monthly dividend stocks pays dividends at a rate of 10% or higher. Those are the ones on this list. Investors should be aw...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
While there’s nothing quite as exciting as betting everything on a hot growth enterprise, prudent investors may want to consider the best di...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.