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
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
While I've invested a decent portion of my portfolio into growth stocks, a significant part of my holdings consists of dividend-paying s...
-
Investors hear about dividend aristocrats all the time. It’s a fantastic thing if a company raises its dividend every year for 25 years runn...
-
Stocks can make for amazing investments, offering better long-term returns than bonds, precious metals, and most other commonly available in...
-
All too often when a cheap stock offers a high dividend yield, it's too good to be true. Perhaps the stock has plunged with good reason,...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
To alert investors of stocks that have the highest risk of reducing their current dividend in the future, Simply Safe Dividends created a Di...
-
April has time and again proved to be favorable for stocks. But this time around, April has arrived during midterm election, which usually s...
0 comments
Post a Comment
Post a Comment