Looking to boost retirement income and to do so in a consistent manner? Think dividend-yielding stocks — but beware dividend traps. Shares that pay out dividends have a good probability of beating inflation, which is the biggest threat to fixed pools of money. They also allow clients to rely less on random capital gains as a way to pull income in retirement, said Charles Farrell, chief executive of Northstar Investment Advisors LLC. Mr. Farrell spoke on Monday at InvestmentNews' Retirement Income Summit in Chicago.
When assessing companies, Mr. Farrell referred to his dividend power ratio formula, which divides earnings growth by dividend growth. He aims for a ratio that's close to 1, signifying that earnings and dividends at a firm are growing at approximately at the same pace. A earnings/dividend ratio that's well above 1 suggests that the company isn't committed to paying out dividends that are commensurate to earnings.
Source: Investment News
Related Articles:
- Love People, Use Dividend Stocks
- The 2012 Dividend Achievers
- Why Dividends Matter
- 2011 Was A Great Year For Dividend Stocks
- Utilities Stock Funds Were 2011's Bright Star
Dividend Growth Stocks News
- Unlocking High-Yield Opportunities in the Middle East: Energy and Infrastructure Dividend Stocks for 2025 - AInvest - 7/18/2025
- The 10 best US dividend stocks - Morningstar - 7/18/2025
- Build Your Retirement Nest Egg: 4 Singapore Stocks for Growth and Income - Yahoo - 7/18/2025
- How to Invest $250,000 in Canadian Dividend Stocks for $12,027 Each Year - Yahoo - 7/18/2025
- Top Asian Dividend Stocks For Your Portfolio - Yahoo Finance - 7/17/2025
- Chevron Corporation (CVX) Dividend Stock Analysis - 7/18/2025
- Emerson Electric Co. (EMR) Dividend Stock Analysis - 7/11/2025
- Amgen, Inc. (AMGN) Dividend Stock Analysis - 6/27/2025
- W.W. Grainger, Inc. (GWW) Dividend Stock Analysis - 6/20/2025
- Abbvie Inc. (ABBV) Dividend Stock Analysis - 6/13/2025
The Secret To Picking Dividend Stocks
Posted by D4L | Wednesday, May 02, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.