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, thus 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 dividend payments: Among the three giants that income seekers should be eyeing this week is America's leading pharmacy by market share, CVS Health (NYSE:CVS). Another income stock dividend seekers would be wise to put on their radar is combat-ship developer General Dynamics (NYSE:GD). Finally, dividend investors may want to keep their eyes on money-center behemoth Citigroup (NYSE:C), which looks poised to benefit from a Trump presidency.
Source: Motley Fool
Related Articles:
- 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%
- 3 Powerful Concepts for Compounding Wealth with Dividend Stocks
3 Attractive Income Stocks Whose Dividends Could Double
Posted by D4L | Tuesday, December 13, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
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...
-
Finding cheap dividend stocks is critical for another reason. By the time the Federal Reserve meets for the second time in 2023, the central...
-
In short, dividend-bearing stocks are one of the smartest approaches stock investors have available currently. The same is true in strong ec...
-
Investing in passive income can allow you to make money with minimal portfolio management. There are many types of investments to make passi...
-
As 2022 wraps up, many investors are likely looking for ways to position their portfolio for more macroeconomic uncertainty next year. After...
-
Most income-oriented investors focus almost exclusively on the current dividend yield of stocks to decide whether to purchase them. However,...
-
For most investors, the new year brings with it new opportunity. With all three major U.S. stock indexes falling into a bear market last yea...
-
Last year was brutal for the real estate investment trust (REIT) sector. Rising interest rates created two headwinds for the industry. They ...
-
Dividends drive significant returns for Berkshire Hathaway's portfolio. One common theme of Warren Buffett's Berkshire Hathaway is d...
-
With inflation appearing to have peaked and fears of a recession dimming somewhat, investors have some positive catalysts to look forward to...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.