What is it about dividend-paying companies that makes them so attractive to the long-term and retired investor? To begin with, dividends act as a beacon that lets investors and retirees know that a company's business model is so fundamentally sound today that it can afford to share a percentage of profits with its shareholders. Secondly, dividends help ease the pain during stock market corrections and bear markets. They don't erase the red arrows, but they certainly help hedge your losses a bit. Finally, and most importantly, dividends can be reinvested back into more shares of stock, allowing your position and future dividends to compound. This last point is where substantial wealth can be created over time.
Let's have a look at which five companies make the cut: The technology sector isn't known for its dividends, but Seagate Technology (NASDAQ:STX) is among the best exceptions. GlaxoSmithKline (NYSE:GSK) hasn't had the easiest go of things over the past couple of years due to the imminent emergence of a generic version of inhaled COPD and asthma blockbuster Advair. Up next, we'll look at a company that's been driving over the competition: General Motors (NYSE:GM). Annaly Capital Management (NYSE:NLY) may take a lot of flak as a mortgage real estate investment trust (mREIT), but it's been among the highest-yielding dividend stocks over the past decade, and it's likely to remain so moving forward. Last, but not least, we have Holly Energy Partners (NYSE:HEP), a midstream oil transportation, terminaling, and storage company, which also happens to be a subsidiary of HollyFrontier.
Source: Motley Fool
Related Articles:
- Warren Buffett's Secret To 50% Returns
- 7 Undervalued, Big-Name Stocks To Consider For Your Dividend Portfolio
- 7 High-Yield Energy Stocks Growing Their Dividends
- 5 Dividend Stocks In Need Of A Market Correction
- 10 Dividend Stocks Building A Growing Cash Stream
This Diverse Income Portfolio Sports an Average Dividend Yield of 7.5%
Posted by D4L | Monday, March 28, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
All seven equities on this list have dividend yields above 13%, but the highest one yields nearly 27%! In addition, each equity has a positi...
-
Dividend-payng semiconductor stocks to buy during a computer chip shortage for electric vehicles (EV), smartphones and other technology prod...
-
Dividend safety is especially important when stock prices are falling. Many companies cut their dividend payouts in 2020 during the coronavi...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Investors in retirement may desire additional income. Those who don’t have a pension are likely relying on Social Security, and their retire...
-
Investing in dividend-paying stocks is a good way to generate fairly reliable income. However, that strategy doesn't necessarily mean yo...
-
Sometimes, stocks are a bargain because the company's prospects are being overlooked, and sometimes, it's just the result of a broad...
-
The four dividend-paying retail technology stocks to buy towered over the rest at a BoA Global Research Consumer & Retail Technology C...
-
High yields are often found in sectors that are out of favor, which is why you can get some pretty impressive dividends from the energy sect...
-
Chasing growth is usually the right move for younger investors, but it can be a risky strategy for retirees. Generally speaking, retirees sh...

0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.