Dividend stocks are all the rage now, for better or for worse, because bond yields have effectively dried up as the Federal Reserve kept interest rates at record lows. I’ve been of mixed feelings about this trend, because the chase for yield has led income investors away from the relative safety of bonds and into dividend stocks, which do carry more risk. Thus, as more and more money flows into dividend stocks, they start to get stretched as far as valuation is concerned. When it comes to stocks to buy, jumping in simply for the dividend isn’t a great idea.
That’s because, should the valuations of these dividend stocks contract back towards the mean, the loss will be in excess of the dividends paid out over several years. So I’m trying to find options that are a bit less vulnerable to that kind of price contraction, while also offering a 7% yield or higher to offset some of the existing risk: Sunoco LP (SUN), Starwood Property Trust, Inc. (STWD) and Ashford Hospitality Trust, Inc. (AHT).
Source: Kiplinger
Related Articles:
- Love People, Use Dividend Stocks
- We Were Dividends, Before Dividends Were Cool
- 7 Dividend Stocks Delivering The Secret To Success
- 5 Low-Risk, High-Yielding Dividend Stocks
- 9 Dividend Stocks For A Rainy Day
Dividend Growth Stocks News
- 2 Magnificent S&P 500 Dividend Stocks Down 20% to Buy and Hold Forever - AOL.com - 7/25/2025
- Down on dividend investing? Here’s why you shouldn’t be - The Globe and Mail - 7/25/2025
- Best Stocks for Women Investors Best Performing Dividend Stocks - Unmatched market performance - PrintWeekIndia - 7/25/2025
- Best Dividend Stocks Automated Stock Picking System - Superior portfolio returns - PrintWeekIndia - 7/25/2025
- Top Dividend Stocks in India AI Stock Market Guide - Free Stock Market Real-Time Monitoring - PrintWeekIndia - 7/25/2025
- Duke Energy (DUK) Dividend Stock Analysis - 7/25/2025
- Chevron Corporation (CVX) Dividend Stock Analysis - 7/18/2025
- Emerson Electric Co. (EMR) Dividend Stock Analysis - 7/11/2025
- Amgen, Inc. (AMGN) Dividend Stock Analysis - 6/27/2025
- W.W. Grainger, Inc. (GWW) Dividend Stock Analysis - 6/20/2025
3 Reliable Dividend Stocks Yielding 7% or More
Posted by D4L | Monday, November 28, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.