For long-term value investors, income/dividends are key. The safety cushion they provide is as powerful as the “margin of safety” concept itself. You would be shocked, however, by how many clients we speak with who don’t know what is going on with their investments and what kind of income streams their dividends generate. We try to avoid companies that do not have strong sustainable competitive advantages or that offer dividend yields below 2%. We also tend to avoid companies offering yields above 8% as many of these firms are in serious trouble and will likely have to cut their dividends in the near future. Unfortunately, finding great dividend-paying stocks that meet these criteria isn’t that simple.
Sure, there are lots of companies offering high yields with long dividend track records, but many of these companies are still unsafe poor investments. Just consider all the supposedly “safe” dividend-paying energy stocks that got hammered over the last few years. If you’re going to invest in stocks for dividends, you’ve got to target those stocks that pay nice dividends of 2% but are still selling at or below the fair value. Within the current market environment, we think there are many attractive dividend-paying stocks selling at reasonable valuations. Let’s take a look at three of our top dividend-paying stocks for 2017: Bank of Nova Scotia (NYSE:BNS), Johnson & Johnson (NYSE:JNJ) and Quest Diagnostics (NYSE:DGX).
Source: Guru Focus
Related Articles:
- Where To Find Great Dividend Stocks
- How To Manage Your Dividend Portfolio In A Downturn
- 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
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
The fact is that there are many interesting high-yielding companies that have good long-term prospects. Besides, as the markets get more vol...
-
A common measure of dividend sustainability is the payout ratio, the percent of earnings that are paid out to shareholders. Unfortunately, e...
-
Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial s...
-
Good income investments often come with strong dividend yields, delivering income that's higher than an investor could find at a bank or...
-
A lot changes when you shift from working to retirement, including how you invest. Most investors switch from building a nest egg to living ...
-
Both of the listed stocks are often discussed on the Reddit page, and for very different reasons. The former pays a frequent special dividen...
-
Last month we wrote about the top four companies in our model portfolio in the article 4 Dividend Dominators for 2021 - Companies With More ...
-
Interest rates remain very low and given the ongoing economic impact from COVID-19, they will likely stay very low. This low-rate environmen...
-
When it comes to dividend stocks, investors can fall into the trap of focusing on dividend yield over all else. That can be a dangerous stra...
-
Safety and tranquility are both important aspects of investing for retirement. Yes, we want stocks with meaningful upside. We also -- howeve...

0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.