Do you think that investing for income is boring? You’re not alone, and it’s always sexier to tout the next market sector that’s set to soar, or talk about what isn’t working at the moment, namely oil-related stocks. But many investors rely on income from investments, and with interest rates remaining so low for so long, maintaining and growing this income can be very difficult. Investors are shying away from high-yielding stocks that don’t have clear support for their dividend payouts. So we’re revisiting a strategy outlined in May by Bill McMahon, the chief investment officer of Thomas Partners.
McMahon focuses on identifying companies that not only have attractive dividend yields, but have levels of free cash that could support significantly higher payouts. Free cash flow is a company’s remaining cash flow after capital expenditures. One approach favored by McMahon is to calculate a company’s cash flow yield, by dividing the free cash flow per share over the past 12 months by the share price. Then a company’s headroom to raise its dividend can be calculated by subtracting its current dividend yield from the cash flow yield.
Source: Market Watch
Related Articles:
- 13 Dividend Growth Stocks With A Good Yield/Growth Mix
- High Yield, High Risk Dividend Stocks
- Dividend Stocks vs. Dividend ETFs
- If Only I Had Known About These Dividend Stocks...
- 10 Dividend Stocks Delivering The Secret To Success
Dividend Stocks For Solid Income While U.S. Interest Rates Remain Low
Posted by D4L | Thursday, January 22, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
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...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.