When investing in dividend stocks, it might make more sense to look at potential dividend growth than actual payouts. Myles Zyblock, chief institutional strategist at RBC Dominion Securities, looked at Canadian stocks within the S&P/TSX 60 index that have payout ratios below 70 per cent, implying that there is considerable room for companies to raise their payouts. He then narrowed the list down to 20 names.
You might think that dividend-seeking investors would turn away from such a strategy because the dividends simply aren’t robust enough. Yet, according to Mr. Zyblock, this dividend strategy has a compound annual growth rate of 15.1 per cent. That beats a general dividend strategy by 2 percentage points a year, and it beats the index by more than 10 percentage points a year.
Source: Globe and Mail
Related Articles:
- How To Build A Sustainable High Yield Portfolio
- 10 Stocks That Have Paid Dividends Since The 1800s
- 7 Exceptional Dividend Growth Stocks With Quality Financials
- Are You Patient Enough To Be Wealthy? These 12 Dividend Stocks Will Help You Wait
- 10 Dividend Stocks For Healthy and Wealthy Retirement
How To Look At Dividend Stocks
Posted by D4L | Thursday, February 02, 2012 | 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...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.