The best dividend stocks don't always come with incredibly generous yields. Excessive dividend yields are often a sign of deeply troubled stocks, often overvalued and destined to lose that tremendous payout fairly soon. Seasoned income investors know that they should look for other qualities. A reasonable yield is a good start, but a strong commitment to growing payouts over time is much better. If the dividend checks are financed by rock-solid cash flows, that's even better. And in the end, the underlying business should be poised to deliver these growing, cash-backed dividends for a very long time.
Read on to see how International Business Machines (NYSE:IBM) and American Tower (NYSE:AMT) fit the bill as world-class dividend stocks, each in its own unique way. Big Blue recently joined the exclusive club of Dividend Aristocrats. A symbolic payout increase from $1.62 to $1.63 per share ensured that IBM's payouts have been rising without interruption for 25 straight years. The dividend checks have actually been sent out every quarter since 1916, with a few bumps along the way. Cell tower operator American Tower is a different story. Organized as a real estate investment trust (REIT), American Tower is required to pay out at least 90% of its taxable income in the form of dividends, in order to qualify for blanking out its corporate tax payments. REITs send their excess cash directly to shareholders rather than to Uncle Sam.
Source: Motley Fool
Related Articles:
2 Stocks With World-Class Dividends
Posted by D4L | Wednesday, June 09, 2021 | 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...
-
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...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.