Dividends4Life: Why This Company Is a Top Dividend Stock for Investors’ Portfolios

While cash flow can come from bond interest or interest from other types of investments, many income investors hone in on dividends. A dividend is the distribution of a company’s earnings paid out to shareholders; it’s often measured by its dividend yield, a metric that expresses a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Smucker (NYSE: SJM) is a Consumer Staples stock whose shares have jumped 15.73% so far this year. The food maker is currently shelling out a dividend of 88 cents per share, with a dividend yield of 3.25%, making it one of a number of dividend stocks that income investors can consider. This compares to the Food – Miscellaneous industry’s yield of 0.1% and the S&P 500’s yield of 1.88%. Taking a look at the company’s dividend growth, its current annualized dividend of $3.52 is up 5.7% from last year. In the past five years, Smucker has increased its annual dividend five times for an average annual increase of 7.62%

Source: InvestorPlace

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