Dividends4Life: Dividend Stocks For A Regular Return

Dividend Stocks For A Regular Return

Posted by D4L | Wednesday, February 15, 2012 | | 0 comments »

Looking for a stock that regularly pays you money? Then a dividend stock may be for you. You may think dividend-paying companies are slow-growth firms that don't have anything better to do with their cash. But history has shown that investors get a better return when investing in dividend stocks."There are a lot of statistical studies showing dividend-paying stocks outperform nondividend stocks," says Josh Peters, director of equity-income strategy at Chicago-based Morningstar Inc., which provides investment research. "Companies that pay dividends have better established competitive positions and a better return on their capital."

Breiter says when it comes to dividend investing, there are two camps: those who invest for the high yield and those who buy stocks that pay a lower dividend today, betting it will increase down the road. No matter which way you choose to invest in dividend stocks, financial pros say to look for those companies that have enough cash flow to sustain their dividends, have a long history of paying a dividend and have shown a propensity to raise it on a regular basis.

Source: Fox Business

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