Dividend stocks can be the foundation of a great retirement portfolio. Not only do the payments put money in your pocket, which can help hedge against any dips in the stock market, but they're usually a sign of a financially sound company. Dividends also give investors a painless opportunity to reinvest in a stock, compounding gains over time.
However, not all income stocks live up to their full potential. Using the payout ratio -- i.e., the percentage of profits a company returns to its shareholders as dividends -- we can get a good read on whether or not a company has room to increase its dividend. Payout ratios between 50% and 75% are ideal. Here are three income stocks with payout ratios currently below 50% that could potentially double their dividend payments: Johnson & Johnson (NYSE:JNJ), Bank of the Ozarks (NASDAQ:OZRK) and SpartanNash (NASDAQ:SPTN).
Source: Motley Fool
Related Articles:
- How To Manage Your Dividend Portfolio In A Downturn
- 5 Tech Stocks With A History of Growing Their Dividends
- 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%
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Not all utility stocks are cut from the same cloth. There have been some dividend blow-ups in the sector, as a few have become over-leverage...
-
Two conservative industry bellwethers with giant yields and strong businesses -- there's a lot to love here. Dividends are only as good ...
-
In today’s market, high-yield stocks are usually not the safest bets. I mean, if a company is solid and offers a yield much higher than its ...
-
This REIT continues to make a strong value proposition for investors that value income stability in a volatile market. It convinces in terms...
-
Studies have shown that there is no single best season or month to trade stocks -- take that, January Effect! That said, there are some soli...
-
You have good reason to be nervous. Anyone who had just seen their retirement account take a big haircut would lose sleep. The question is, ...
-
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 ...
-
Most dividend stocks pay on a quarterly or even semi-annual basis. And while that may not seem like a problem, for many retirees used to a m...
-
It is said that income investing is a negative art. Your goal isn’t to pick the winners — it’s to avoid the losers. You want to pick winners...
-
Buying and holding high-quality, high-yield dividend stocks is a great way for investors to predictably generate market-beating returns over...
0 comments
Post a Comment
Post a Comment