Dividends are good but they need to be paid from real earnings. Sometimes, companies pay more than they have on their bank accounts due to growth costs or reinvestments.
You will also find often stocks that pay only a small amount of their annual income back to shareholders.
Good companies with no growth costs will consider paying the rest of the income via share buybacks.
Within the financial scene we discuss the theme shareholder yield, a ratio that quantifies the dividend yield and buyback yield as a whole.
It's quite simple, the bigger the shareholder yield, the more money being paid back to the owners of the company.
Attached you will find the 10 stocks with the highest shareholder yield of the current month.
These are the results...
Investment professionals teach that you should buy stocks, and sectors, when they are cheap and out of favor. Even with the market near all-time highs, there are still such sectors, and such stocks, around.
These are serious companies with solid earnings, many of which pay dividends. Cheap stocks are out of favor as investors chase growth, but tastes change.
Don’t put all your eggs in one basket, the pros caution. Investing fashions will change.
Companies will rise and fall in the estimation of the market. Buy those strong companies and vital sectors that are weak now, instead of those that are strong, and in the long run everything will adjust.
Your returns will average out.
This is the difference between investing and gambling with your money. An investor will spread their bets, buying what’s cheap and selling what’s dear.
A gambler will buy what’s hot, and then be shocked when it falls, as hot stocks inevitably do. Diversification and sector rotation are the short odds. Even in today’s market, there are stocks you can buy now, cheap, and guarantee yourself a return in terms of dividends.
When tastes do change you will be very glad to have these cheap stocks in your portfolio. Even if the stocks stay cheap, buying them now gives you dividends, income you can either live on or reinvest.
Attached you will find five top picks that might look cheap and deliver a solid return if the market evaluates the mispriced situation.
Here are the results...
The Brexit vote pushed U.S. Treasury rates to record lows and the S&P 500 Index to new record highs, creating a sort of dash for stocks with a modicum of safety.
It's hard to discover nearly safe stocks. The truth is that you will not find any safeness at the stock market.
There are companies with a more risky growth strategy and companies with lower risk exposure.
Today I will share a couple of stocks with high dividends that might offer a bit safeness for you.
Here are the results...
Earnings for Standard & Poor’s 500 companies appear to have fallen for a fifth consecutive quarter in the three months through June, but earnings grew in half of the sectors, including industrials, health care, technology, and consumer discretionary, and would have grown overall without the downward pull of the energy sector.
The six companies that follow have steadily grown their earnings in recent years and are expected to do so in coming ones. They pay dividends and trade at discounts to the market. They don’t sell packaged food, tobacco, booze, or power, but their statistical profiles resemble companies that do.
These are the results....
Long term dividend growth investing is a popular investing strategy. Investors are looking for stocks with a long dividend history and keep an eye on those companies with raising dividends.
There’s an elite sub-group of S&P 1500 stocks known as “Dividend Aristocrats” which have a distinguishing factor that income growth investors find very attractive: a history of consistently increasing dividends every year for at least 20 consecutive years.
And interestingly enough, for the last 10 years, this elite group has out-performed both the S&P 1500 and the benchmark S&P 500.
The lag of current Dividend Aristocrats is that they have shown a good past performance but this does not mean that they will perform in the future well.
In addition Dividend Aristocrats are very expensive due to the high quality they offer. That's in my view a good reason for looking into the second level.
Attached you will find 10 companies identified as “future dividend aristocrats contenders,” these being members of the S&P 1500 and not that many years away from showing the required two decades of dividend growth.
These are the results...
