Dividend investing is changing. Over the past decade, many dividend-paying companies have slowly trended away from paying traditional dividends. Don't get me wrong, many long-time dividend payers will keep paying and growing their dividends into the future. But certain ones are starting to reward shareholders in two other, more tax-friendly ways. Fortunately for investors, these two hidden, "extra payments" could be much more valuable than traditional dividends alone.
It's the single best way I know to get market-beating returns from your dividend stocks. It's called Total Yield investing. I call it that because it looks at all the ways a company rewards shareholders. This not only includes dividends, but also accounts for two other "extra payment" metrics: stock buybacks and debt paydown. You're familiar with how dividends work. If you invest $100 into a stock with a 10% dividend yield, you can expect to receive $10 in dividends (or 10%) a year from that investment. The other two "yields" are a bit more complex. The data to calculate these yields isn't posted blatantly like a dividend yield is on a stock ticker page. Instead, we must find this data deep with a company's financials.
Source: NASDAQ
Related Articles:
- 6 Dividend Stocks To Beat The Wall Street Giants
- First Quarter 2013: Top And Bottom Performing Dividend Stocks
- A Disciplined Approach To Dividend Stocks
- 3 Higher-Quality, High-Yield Dividend Stocks
- 13 Dividend Growth Stocks With A Good Yield/Growth Mix
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
REITs don’t just pay out attractive yields; many of these companies are terrific operators too. So not only do investors get to collect a so...
-
The company reported solid results for its fourth fiscal quarter. The business development company once again covered its dividend payout wi...
-
It’s in volatility like this that the value of dividends truly shines through. The market could be having a massive sell-off, but when a com...
-
If you are interested in high-yield dividend stocks, it’s better to focus on a company’s history of growing its dividend rather than just lo...
-
When the average S&P 500 company pays less than two percent, a 6.5%-yielding stock certainly deserves income investors’ attention. A Top...
-
While conventional wisdom holds that you reach for yield, my strategy has been to look first for capital gains, then to management teams tha...
-
I screened for cheap dividend stocks that are showing some upward movement, trading above their 50-day moving average, with a 3% or higher d...
-
Buying and holding high-quality dividend stocks is arguably the best way for investors to predictably achieve outsized returns over the long...
-
There are hundreds of high-yield dividend stocks on the market. At least, that's the case if your definition of high dividend yield isn&...
-
If you are a longtime yield seeker, you’ve probably noticed one thing: most of the double-digit yielders also happen to be beaten-down stock...
Will you explain more about Total Yield investing and how we can find this data?