Cyclical dividend stocks are like the snacks and soft drink aisle in the grocery store. Sure you might toss the odd item into your cart, but you know there’s healthier eating elsewhere. Companies in sectors like energy, materials and industrials are subject to the ups and downs of the economy, and that adds an element of risk to their dividends.
Whereas a utility or telecom company can usually be relied on to maintain or grow dividends, an oil producer or heavy equipment dealer might have to reduce or even eliminate cash payouts in tough times. We’ve seen some tough times in the global economy lately, and there could be more to come. But when growth returns, cyclical dividend stocks will offer a little more nutrition than usual in comparison to the traditional dividend stocks. Let’s be clear about something upfront – cyclical stocks can be solid long-term dividend growers.
Source: The Globe and Mail
Related Articles:
- 5 Dividend Stocks In Need Of A Market Correction
- 9 High-Yield Dividend Achievers With 25 Years of Increases
- 7 Dividend Stocks For A Confident And Secure Future
- Cash Just May Be Your Riskiest Investment
- 7 High Yielders With A Low Free Cash Flow Payout
________________________________________________________________
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...
-
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 looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
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.