Six weeks of dropping stock-market indices and dimming prospects for the global economy have investors looking for a safe harbor. That may very well be summed up in one word: dividends. More than in many years, especially since the Great Recession, dividend-yielding stocks are a crucial consideration for investors.
Dan Newhall, a principal in Vanguard's Portfolo Review Department, is among the overseers of the Vanguard Dividend Growth Fund(VDIGX), which has $5.7 billion in assets. He says there has been "an incredible amount of interest in anything that is income-oriented. ... It is not too far in the past where people didn't pay much attention to dividends," he says. "Frankly, companies and their management weren't very incentivized to pay dividends, especially with stock-option plans that were based entirely upon stock price appreciation and that is how they were getting compensated. They didn't really see the benefit. They'd rather plow everything back into growth projects that may or may not deliver the kinds of returns that they should deliver, or buy back stock."
Source: Business Insider
Related Articles:
- Finding Low Risk Dividend Stocks
- Why We Are Dividend Growth Investors
- What Determines A Dividend Stock's Yield
- Managing Risk With Dividend Stocks
- 9 Stocks With a Sustainable Dividend
________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
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...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.