Dividends are enormously valuable to overall stockholder returns. Some studies suggest that the overall long-term U.S. market return - as measured by the S&P 500 - comes from both share price appreciation and a dividend yields at a 50/50 split over the long run. Of course, this only counts when you find companies not only capable of maintaining the dividend, but with the potential to increase the dividend payout over time.
The value in dividends to investors is first and foremost regularity. Investors looking at dividend stocks want to know that they can be counted on for many years. Secondly, the hope is that as a company's operations prosper over time, so will the dividend payout. Regularity of a dividend requires a similar regularity in cash flows. Thus businesses with stable sources of revenues occurring from the sale of essential or recurring product sales makes for a perfect dividend candidate. I can't think of a more perfect union than food stocks that pay dividends.
Source: Investopedia
Related Articles:
________________________________________________________________
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...
-
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...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
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...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Today we'll talk dividend deals. Big payers. Stocks yielding up to 10.3% and trading for as little as three-times free cash flow (FCF). ...
-
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 ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.