Source: Seeking Alpha |
Showing posts with label GMRE. Show all posts
Showing posts with label GMRE. Show all posts
Russell 2000 Dogs With Hard Safe Yields
Dividend investors face a constant battle of choosing between dividend yield and sustainability.
Generally speaking, low yields are often sustainable but may be undesirable for investors looking to pad their portfolio with dividend income or reinvestment opportunities.
On the other end of the spectrum, high yields (let's say 5% and higher) are extremely attractive for income-seeking investors, but they're also often far more dangerous than lower yields due to a possible lack of sustainability.
Remember that dividend yields are a function of payout divided by share price, and if a stock's share price has been tumbling, its yield will rise. Thus, dividend investors have to be diligent to ensure that a yield isn't inflated solely because a company's business model is in trouble.
Attached you will find a list of stocks from the Russell 2000 with high yields. Most of them have free cashflow yield exceeding the dividend yield.
Here are the results...
Generally speaking, low yields are often sustainable but may be undesirable for investors looking to pad their portfolio with dividend income or reinvestment opportunities.
On the other end of the spectrum, high yields (let's say 5% and higher) are extremely attractive for income-seeking investors, but they're also often far more dangerous than lower yields due to a possible lack of sustainability.
Remember that dividend yields are a function of payout divided by share price, and if a stock's share price has been tumbling, its yield will rise. Thus, dividend investors have to be diligent to ensure that a yield isn't inflated solely because a company's business model is in trouble.
Attached you will find a list of stocks from the Russell 2000 with high yields. Most of them have free cashflow yield exceeding the dividend yield.
Here are the results...
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