The S&P 500 index is one of the most widely followed indices of the U.S. stock market. The index is made up of some of the largest companies in the world. These companies often have entrenched positions in their operating markets, and many of them can afford to establish regular dividend policies. However, the problem is that because everyone knows about the index, its components are always highly sought after. Due to the inverse relationship between dividend yield and stock price, S&P 500 companies are not really known as high yielders....
And the surge in the U.S. stock market over the last several years has only added fuel to the fire. Right now, the average dividend yield of all S&P 500 companies stands at just 1.75%. (Source: “S&P 500 Dividend Yield,” Multpl.com, last accessed August 30, 2018.) And that, my dear reader, is why L Brands Inc (NYSE:LB) stands out. The company was added to the S&P 500 index in September 1983 and has remained in the index ever since. And yet, it manages to offer investors an annual dividend yield of nine percent! In fact, L Brands is currently the second-highest-yielding name among all S&P 500 companies. The big question now is, should income investors chase this ultra-high yield?
Source: Income Investors
Related Articles:
- 6 Companies With The Power of 5/15 Dividend Growth
- Searching the World For The Best Dividend Stocks
- What's Your Retirement Vision?
- The Most Important Financial Statement When Selecting Dividend Growth Stocks
- Stock Dividends, The Gift of Nothing
The Second-Highest-Yielding S&P 500 Stock Now Pays 9%
Posted by D4L | Monday, September 24, 2018 | 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...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
Investors buy dividend stocks for a few reasons. For one, they provide income via dividends that act as a bonus on top of capital appreciati...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
As investors seek reliable income streams, a diverse portfolio of dividend-paying stocks could potentially generate over $3,000 a month. Thi...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.