Looking for high dividend ideas with bullish upside potential? Stocks that pay out dividends can be wise investment decisions, especially if you plan to hold the stock for a long period of time. But using dividends to supplement income requires some thought as to what dividend yield might be suitable, and what levels of risk are acceptable. It’s important to remember dividends are not future guarantees.
Yields above 7% may verge on unsustainable. Consider a rapidly growing stock price. If the price escalates from $15 to $50, a 12% dividend may become too much money for a company to pay out and the company is apt to change its yield. But if the yield stayed close to a healthy 2%, there would be less risk of unsustainable payouts or the company adjusting to lower yields. The higher the share price, the greater the returns. The same is true of the opposite. For that reason investors who appreciate a high yield stock also consider the company’s value and growth potential.
Source: NASDAQ
Related Articles:
- Dividend Stocks: A Disciplined Approach
- 3 High-Yield Telecom Dividend Stocks
- 8 Dividend Stocks With The Right Stuff
- International Diversification Begins At Home
- Dividend Payout vs. Free Cash Flow Payout
Bullish on High Yield Dividend Stocks
Posted by D4L | Wednesday, November 16, 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...
-
In short, dividend-bearing stocks are one of the smartest approaches stock investors have available currently. The same is true in strong ec...
-
Finding cheap dividend stocks is critical for another reason. By the time the Federal Reserve meets for the second time in 2023, the central...
-
Investing in passive income can allow you to make money with minimal portfolio management. There are many types of investments to make passi...
-
As 2022 wraps up, many investors are likely looking for ways to position their portfolio for more macroeconomic uncertainty next year. After...
-
Last year was brutal for the real estate investment trust (REIT) sector. Rising interest rates created two headwinds for the industry. They ...
-
For most investors, the new year brings with it new opportunity. With all three major U.S. stock indexes falling into a bear market last yea...
-
With inflation appearing to have peaked and fears of a recession dimming somewhat, investors have some positive catalysts to look forward to...
-
Most income-oriented investors focus almost exclusively on the current dividend yield of stocks to decide whether to purchase them. However,...
-
Dividends drive significant returns for Berkshire Hathaway's portfolio. One common theme of Warren Buffett's Berkshire Hathaway is d...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.