Some see this golden age of dividend investing ending. Companies are taking on debt—and using it to reward shareholders rather than invest in their business and expand it further. But we’re talking about the market as a whole—some companies have done well and some haven’t. Many companies in the energy sector slashed or eliminated dividends entirely during the oil bear market of the past two years. But, if you know where to look, there’s still plenty of opportunity to invest in quality, income-producing stocks. While the average S&P 500 stock trades at 24 times earnings, closing in on bubble territory, there are still many individual oversold opportunities.
What do I like in the dividend space? Income growth. A company that can consistently raise dividends year over year is likely to be the kind of company that has other characteristics that make it worth owning for the long haul for growth prospects as well. What’s more, dividend growth is easy for investors to understand. It means an increasing amount of cash coming your way every year. It’s not like a company’s earnings growth or share price growth, which can fluctuate wildly. It’s a more consistent growth, provided you’re willing to buy for the long haul. It’s a golden age of investing. And while it might be under pressure from rising interest rates, if you’re investing in the right space, regulatory and tax reform could lead to substantial increases in payouts over the next few years.
Source: Newsmax
Related Articles:
- 4 High Yield, High Risk Dividend Stocks
- 5 Dividend Stocks To Buy And Hold, Not Buy And Forget
- All Investments Carry Risk
- Warren Buffett's Two Investing Rules For Dividend Investors
- Dividend Stocks vs. Dividend ETFs
It's Still a Golden Age of Dividend Investing
Posted by D4L | Tuesday, February 14, 2017 | 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...
-
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...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
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.