A dividend yield of 2% or 3% may not sound like much, but dividends are the foundations upon which a majority of great retirement portfolios are built. Dividend payments provide three major benefits to shareholders. The first one is obvious: They put more money in your pocket. If you're up on your position, that means icing on the cake; if not, then a dividend is a hedge against your current unrealized losses. Secondly, dividend payments act as a beacon for Wall Street and investors, alerting them to the sustainability and profitability of a company's business model.
Income investors should generally search for "best of breed" dividend stocks. As the name implies, these are the top dividend plays you can buy and hold over the long term. The way I view it, the best-of-breed dividend stocks can be broken down into three categories: high yield, sustainability, and growth. Let's look at an example or two in each category so you'll have a good idea of what a best-of-breed dividend stock looks like. These may not have flashy 7.7% yields, but they'll deliver just about the safest dividend you can possibly find. Here I'm thinking about names such as Coca-Cola (NYSE: KO) and Procter & Gamble (NYSE: PG). The last best-of-breed category to consider is rapidly growing dividend stocks. Here I'm thinking about a biotech blue-chip stock like Amgen (NASDAQ: AMGN).
Source: Motley Fool
Related Articles:
- 6 Dividend Stocks With A Low P/B Ratio
- Are Storm Clouds Gathering For These 5 High-Yielding Securities?
- Why Dividends Matter
- 6 Stocks Currently Trading Below their Fair Value
- The Perfect Dividend Stock
The "Best of Breed" Dividend Stocks
Posted by D4L | Sunday, June 07, 2015 | 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...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Today we'll talk dividend deals. Big payers. Stocks yielding up to 10.3% and trading for as little as three-times free cash flow (FCF). ...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.