As the Federal Reserve prepares to hike interest rates later this year, maintaining dividend stocks in your 401(k) or IRA remains a sound investment. Dividends are the rewards shareholders receive for owning a stock and represent a portion of the earnings from the company. Most companies pay them each quarter for every share you own, even in mutual funds. Since dividends are issued by many companies, finding the best ones can be tricky in an environment where interest rates are expected to rise.
Investors should look for companies which have a long track record of raising dividends, said Yale Bock, president of YH&C Investments in Las Vegas and a portfolio manager for Covestor, the online investing marketplace. “A key is to look for management teams which have a history of being shareholder friendly,” he said. “Think about ones with 20- to 50-year track records such a Johnson & Johnson (JNJ), 3M (MMM - Get Report) and Exxon (XOM)." Growing companies which still have capital to reinvest in their business after paying the dividend are also good options, Bock said.
Source: The Street
Related Articles:
- Searching the World For The Best Dividend Stocks
- What's Your Retirement Vision?
- Stock Dividends - The Gift of Nothing
- What's More Powerful Than Compound Interest?
- Dividends vs. Stock Buybacks
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Stocks that offer big dividend yields are often backed by businesses that are going through rough patches and experiencing significant downt...
-
With the calendar turning over to 2019, many of the trends causing the rise in volatility aren’t stopping. To that end, making a calculated ...
-
Many dividend stocks tumbled over the past year, since conservative investors often shift from high-yielding stocks to bonds when interest r...
-
This company has become an income machine for investors over the past three decades, thanks in large part to the 132 consecutive dividends i...
-
Because we're expected to live longer than those just a generation or two removed from us, we'll need income during our retirement f...
-
If you want to find good deals this holiday season, forget the department stores. Instead, go to the stock market. Due to the lackluster per...
-
For the most part, stock market investors love the technology sector. While tech stocks were hit particularly hard during the latest market ...
-
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 ...
-
The yield is 9.07%, with 1.14X coverage in Q3 '18. EVA has a $7.4B backlog that's contracted through 2025. Management expects EBITDA...
-
Even though GDP is growing nicely, consumer spending is red hot and unemployment is low, the stocks that are outperforming are all ones we’d...
0 comments
Post a Comment
Post a Comment