You’ve probably heard the argument before: Dividend stocks are living on borrowed time. As soon as interest rates rise, investors will pull their money out of dividend-paying companies and plow it into bonds, causing stock prices to plunge. Kinda scary, isn’t it? Well, relax. It’s not going to happen. Here’s why.
Dividends will keep rising. Cash-rich U.S. companies boosted dividends by a net $24.2-billion (U.S.) in the first quarter, up from a net increase of $19-billion in the first quarter of 2011. The number of companies hiking dividends rose to 677, up from 510. Yet, the average payout ratio – dividends as a percentage of profits – is at a historic low of about 30 per cent. That’s less than the long-term average payout ratio of about 52 per cent, indicating that dividends have plenty of room to rise.
Source: Globe and Mail
Related Articles:
- Bonds Look Morbid When Compared To These Dividend Stocks
- The 2012 Dividend Aristocrats
- Best Stocks for 2012
- 4 of my 5 Largest Dividend Stock Positions Have Double-Digit Lifetime Returns
- The Best Dividend Stocks In The World Are Found Here
Reasons Why Dividend Stocks Are Here To Stay
Posted by D4L | Wednesday, June 27, 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...
-
In short, dividend-bearing stocks are one of the smartest approaches stock investors have available currently. The same is true in strong ec...
-
If your growth-investing days are over (or nearly so) and you're more interested in steady income, start your search with all-weather st...
-
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...
-
Many companies make very predictable fixed dividend payments each quarter. When they do, their investors have a pretty good idea of how much...
-
As 2022 wraps up, many investors are likely looking for ways to position their portfolio for more macroeconomic uncertainty next year. After...
-
With inflation appearing to have peaked and fears of a recession dimming somewhat, investors have some positive catalysts to look forward to...
-
Dividends drive significant returns for Berkshire Hathaway's portfolio. One common theme of Warren Buffett's Berkshire Hathaway is d...
-
Linked here is a detailed quantitative analysis of Southern Company (SO). Below are some highlights from the above linked analysis: Company ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.