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
-
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.