Income investors have had to work especially hard in the current low-interest rate environment to get dependable payouts from their portfolios, and high-yield dividend stocks have, therefore, become more popular than ever. One of the highest yielding stocks in the market is Windstream Holdings , which currently boasts a dividend that pays out almost 9% of its stock price annually. Yet, even though the stock has an impressive track record of sustaining its rich payout, Windstream has some investors questioning whether its dividend is too good to be true.
Windstream made a big move recently that promises to shift the playing field for the company and its income-focused investors. The company announced in July that it would break itself into two pieces, with Windstream putting most of its network assets into a separately traded real estate investment trust. The remaining company will focus on providing service to customers, and will lease the network infrastructure from the REIT entity. For dividend investors, Windstream's move will have huge consequences . REITs are required to pay out 90% of their taxable income in order to reap the benefits of not paying taxes at the entity level; as a result, the Windstream REIT will continue to pay a lucrative dividend.
Source: NASDAQ
Related Articles:
- 5 Five-Star Dividend Stocks
- 5 Dividend Stocks Delivering The Secret To Successful Investing
- Mid-Year 2014 Top And Bottom Performing Dividend Stocks
- 6 Dividend Stocks With A Low P/B Ratio
- Are Storm Clouds Gathering For These 5 High-Yielding Securities?
High-Yield Stocks for Dividend Investing: Windstream Holdings
Posted by D4L | Saturday, October 11, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Late last year, Wall Street had a bit of a panic attack when Fed chairman Jerome Powell suggested this tightening was on autopilot. While th...
-
If you’ve been following this column, you’d know that monthly dividend stocks tend to come from two main types of businesses: real estate an...
-
Are you sick and tired of low interest rates? Certificates of deposit pay next to nothing. Bonds yield only three or four percent a year. Su...
-
These three picks are all up more than 10% so far in 2019. The three themes are LNG, specialized healthcare, and small banks. The yields ran...
-
This company makes a compelling value proposition based on valuation, risk/reward, yield, and upside potential. I added this hotel REIT las...
-
This company makes a compelling value proposition on the dip for DGI investors. The REIT has strong portfolio stats and a conservative AFFO-...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
Stocks with high dividend yields can be great, but if a stock has a high dividend yield and also has lots of long-term growth potential and ...
-
If a company pays, say, 14%, you would only need to put up $71,429 to earn $10,000 in annual dividends. Of course, we know that double-digit...
-
There are a lot of reasons to consider adding high-dividend stocks to your portfolio. They offer a steady income that can help ease the pain...

0 comments
Post a Comment
Post a Comment