I’ve written before about the power of fat dividends to crush the market, and I’ve discussed five special dividend stocks that are poised to rapidly increase their payouts. But it not only feels good to invest in high-yielding dividend stocks for current income -- it’s a viable long-term strategy, too. And the situation is even better if you can find stocks that are mispriced because investors do not fully understand them, so that their yields are even higher than they otherwise would be.
Ask the good folks at Tweedy, Browne. They reviewed the academic and professional research and concluded that high yields lead to attractive returns over long periods. Dividend stocks also provide decreased volatility and more downside protection. Good news for those of us (like me) who invest in such stocks. I’ve shown elsewhere that if you’re investing for yield, it makes a lot of sense go with a higher yield over faster-growing but lower-yielding dividend payers. That high yield gives you a great head start. In fact, it can take a decade or two for even the fastest-growing dividend stalwarts to catch just a reasonably growing high yielder.
Source: Motley Fool
Related Articles:
- 13 Dividend Stocks With A Good Yield/Growth Mix
- 11 Higher-Quality, High-Yield Dividend Stocks
- 6 Dividend Stocks That Will Make You Smile
- Dividend Stocks vs. Dividend ETFs
- 13 Dividend Stocks and 3 ETFs To Balance Your Asset Allocation
________________________________________________________________
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...
-
Boring stocks to buy and hold almost always align with deeply established businesses. While they won’t offer the outstanding growth potentia...
-
The quick rise in interest rates over the past year turned investor sentiment toward REITs negative. Higher interest rates make it harder fo...
-
Indeed, with recession on the horizon, investors are increasingly emphasizing quality, safety and dividends in their portfolio selections. W...
-
Linked here is a detailed quantitative analysis of Texas Instruments Inc. (TXN). Below are some highlights from the above linked analysis: C...
-
Verizon (VZ -1.75%) pays one of the biggest dividends in the S&P 500. The telecom giant currently yields 6.5%. That's one of the top...
-
Countless people dream of being able to pay their bills with the cash they receive from their investments. But it doesn't have to be jus...
-
A great year for dividend growth stocks is one in which there are few dividend cuts and fewer companies that failed to raise their dividends...
-
Cash is king when you’re looking to add dividend stocks to your portfolio There’s ample reason for caution. In case you haven’t noticed, a l...
-
Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to re...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.