The powerful tailwind of lower interest rates is history. Corporate profits as a percentage of the gross domestic product (GDP) are at historic peak levels and most likely have little headroom on the upside. All this means that you are going to find dividends even more important in upcoming years.Corporate staff reductions have been made, and the tremendous value of low interest payments for bond-issuing corporations is over. And companies with weak pricing power are going to find sledding tough as inflation cycles up.
The investment environment remains extremely challenging, necessitating a more defensive stance than you might normally adopt. Many of the names on our list of blue-chip dividend stocks look ready to increase their payouts this year. When you are happy with the dividend a company pays, and enthusiastic about an increase in your dividend in the year ahead, you have done as good a job as you can do in ensuring consistently positive long-term total returns. The value of high-yielding stocks is less sensitive to interest-rate changes than the value of non-dividend-paying stocks.
Source: Investor Place
Related Articles:
High payout stocks don't lag wth rising interest rates
Posted by D4L | Thursday, March 03, 2011 | 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...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
These investments take advantage of the potential for growth in the share price and dividend yield. Yet, when it comes to undervalued compan...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.