Buying stocks that pay market-beating dividend yields can give your annual performance some extra pop, but not every company with a high dividend yield deserves to be in your income portfolio. The dividend yield of some companies are high because their businesses are struggling. Rather than risking owning a high-yield/high-risk stock, income investors might be better off buying industry titans with solid balance sheets that are trading at reasonable valuations. For example, these three companies could be the perfect addition to income portfolios right now.
A forward P/E ratio of 11.3 and a 3.5% dividend yield makes International Business Machines Corporation (NYSE:IBM) too alluring for dividend investors to ignore, especially since it's knee-deep in transforming itself from a stodgy PC and networking company into a cloud, analytics, engagement, and security giant. IBM's not the only technology giant undergoing big changes that dividend investors ought to consider buying. Microsoft Corp. (NASDAQ:MSFT) is also transitioning itself into a cloud giant and its 2.5% dividend yield and forward P/E of less than 18 makes it a compelling buy, too. After suffering through years of slowing sales due to patent expiration on its multibillion-dollar cholesterol drug Lipitor, Pfizer, Inc.'s (NYSE:PFE) top and bottom lines are poised to head higher again.
Source: Motley Fool
Related Articles:
- 8 Dividend Stocks For The Ultimate In Deferred Gratification
- The Most Important Thing To Consider When Selecting A Dividend Stock
- 5 Healthcare Stocks With Growing Dividends Yielding In Excess of 2%
- 3 Powerful Concepts for Compounding Wealth with Dividend Stocks
- Why We Are Dividend Growth Investors
3 Cheap Dividend-Paying Stocks to Buy Now
Posted by D4L | Saturday, September 24, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
The best dividend stock nobody is talking about is an undervalued, high-dividend chemical company poised to grow at an exponential rate. Wit...
-
If any investor has stood the test of time, it is Warren Buffett. For years, the “Oracle of Omaha” has had a rock-star-like presence in the ...
-
Last week, we found out that the consumer price index (CPI) went up by 8.3% in April, more than the 8.1% estimate. Meanwhile, the ongoing wa...
-
A full-blown recession, or the late-year rally in Wilson’s view – the natural move for investors will be toward defensive stocks, moves to p...
-
If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock-star...
-
The Dividend Kings, which are those stocks with at least 50 years of dividend growth, is an excellent place to find high quality names. Ther...
-
When a retailer has a sale, it's often celebrated with banners, signs, and commercials telling customers not to miss out on the spectacu...
-
5 big yields, all with upside. But I've got 1 more share to mention. With most of the earnings releases out, the charts are updated to s...
-
We've got 3 picks with dividend yields from 7.5% to 13.1%. Each share also has a significant discount to either projected current book v...
-
Investors need to seek out stocks of established companies that have a track record of delivering consistent, reliable returns to shareholde...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.