I love fat payouts from dividend stalwarts. In fact, I've recommended a couple that I called "dividend plays for a lifetime" for their strong competitive positions and hidden assets. Those two stocks -- Microsoft and McDonald's -- are solid long-term dividend plays. But often, it can be more valuable to find higher-yielding stocks that are slower- growing, rather than a Microsoft that is fattening dividends at a prodigious clip.
For example, take a stock with a 6% yield growing at just 5% per year, and a stock like McDonald's paying 3% and growing around 10% per year. It will take almost 15 years for the low-yielder's payout to catch up with the high-yielder's, even though the low-yielder's growing faster. To be fair, that doesn't include capital gains, which would likely be better for a McDonald's-type stock. Still, if you need current cash flow, you don't want to wait for capital gains. So today, I want to take a look at some high-yielding stocks that could be great plays for 2011.
Source: Motley Fool
Related Articles:
Best Dividend Stocks of 2011
Posted by D4L | Saturday, January 01, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
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...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
Dividend Aristocrats and Kings tend to snag most income investors’ eyes with their consistent dividend payouts, proven-and-tested business o...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.