Stocks with a strong history of dividend growth ensure steady returns and act as a hedge against any market downturn and economic or political turmoil. These stocks belong to mature companies, which are less susceptible to large swings in the market. Simultaneously, these offer outsized payouts or sizable yields on a regular basis irrespective of the market direction. As a result, these stocks provide greater stability and more scope for capital appreciation as opposed to those that pay high yields.
Additionally, these companies have a sustainable business model, a long track of profitability, rising cash flows, good liquidity, strong balance sheet and some value characteristics. All these superior fundamentals make dividend growth stocks a quality and promising investment for the long term. Further, a history of strong dividend growth indicates that a future hike is likely. This makes the portfolio healthy and safe. Though these stocks have long history of outperformance compared to the broad stock market or any other dividend paying stocks, it does not necessarily mean that they have the highest yields: Huntington Ingalls Industries Inc (HII), Torchmark Corporation (TMK), Scripps Networks Interactive, Inc. (SNI), Citigroup Inc (C) and Southwest Gas Holdings Inc (SWX).
Source: InvestorPlace
Related Articles:
- 5 Dividend Stocks Beating the S&P With Positive Returns In Excess of 50% YTD
- Income Annuities vs. Dividend Stocks
- 8 Select High-Yield S&P 500 Dividend Stocks
- Your Greatest Wealth Building Asset
- Where To Find Great Dividend Stocks
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
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 ...
-
High dividend yields are harder to find lately, given the long-running stock market rally. But that scarcity doesn't mean investors have...
-
One little-known tax loophole allows Americans to collect large, growing distribution checks from the government. And investors can begin ea...
-
The U.S. boosted tariffs on $200 billion worth of Chinese goods from 10% to 25%. The markets had expected this to be the week that this deal...
-
Every investor needs a security blanket -- that piece of the portfolio that needs no attention and doesn't keep you up at night. Busines...
-
The one knock against this midstream company is its higher risk profile compared with its peers. It has been working to address that issue b...
-
I love buying dollar bills for $0.80. Of course, you don’t find many chances like that in the stock market. Whenever such a great deal arise...
-
Technology is the alchemy of the stock market. It is where companies turn worthless silicon into incredible new and expensive gizmos and dev...
-
Utility stocks were supposed to be yesterday’s favorite investment. The theory regarding utility stocks was simple: Robust economic growth c...
0 comments
Post a Comment
Post a Comment