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
3 Reliable Dividend Stocks Yielding 7% or More
Posted by D4L | Monday, November 28, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
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...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.