Here's What You Should Know About Entergy Corporation's 3.1% Dividend Yield

Today we'll take a closer look at Entergy Corporation (NYSE:ETR) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. In this case, Entergy likely looks attractive to investors, given its 3.1% dividend yield and a payment history of over ten years

Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. First, we think Entergy has an acceptable payout ratio, although its dividend was not well covered by cashflow. Second, earnings growth has been mediocre, but at least the dividends have been relatively stable. While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Entergy out there. Companies that are growing earnings tend to be the best dividend stocks over the long term.

Source: Yahoo Finance

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