Sentences with phrase «generate higher dividends»

economic growth and higher returns on investments (especially after the Great Recession of 2008 - 2009) that generated higher dividend and capital gain distributions, with no associated tax withholding,
«We have a lot of indices that focus on dividend investing, generating high dividend yields, we have products in the low risk space to reduce volatility as well as factor - based minimum variance products.
The performance of large - cap value strategies that tend to generate high dividends, such as the Dogs of the Dow, would not benefit because of this.

Not exact matches

Carson says that writing call options on a basket of stocks with high - dividend yields can generate a return of between 10 percent and 15 percent.
«While the company faces a number of significant challenges, including the continued rise of Amazon and Google, its high margin and large sales figures enable the company to generate significant free cash flow, which it increasingly returns to shareholders via buybacks and dividends
Dividends are appealing — and a lot of high cash flow — generating companies pay them — but not a requirement.
Equity Income Funds typically distribute most of their income in the form of Qualified Dividends, which for many taxpayers are taxed relatively lightly, allowing most Equity Income Funds and ETFs to be considered High Tax Efficiency investments when compared with other investment options that generate taxable income.
During the first half of 2016, a rotational migration to low volatility, potentially higher - income assets became evident, as did the outperformance of dividend - generating stocks.
Companies with FCF well in excess of dividend payments provide higher quality dividend growth opportunities because we know the firm generates the cash to support the current dividend as well as a higher dividend.
«I am a registered investment advisor and focus on buying high quality dividend growth stocks to generate safe income for my clients.
This is because reinvested dividends during crashes and market corrections purchase more cheap shares that will, in the future, generate far higher profits when the market rebounds.
This is the new wealth creation paradigm in capital markets — invest in a unicorn and generate a high return but sacrifice liquidity or invest in an established company and generate returns through a «sit and wait» strategy of dividends and share buybacks.
Since dividends are continuously and periodically generated, you are likely to even purchase stocks using your dividends during bear market conditions, resulting in higher dividend income (remember the internal compounding example in Part 3?)
If you're new to my site, my plan is to buy and hold high - quality dividend paying stocks in order to enjoy the flexibility offered by the passive income stream generated by regular dividend payments to shareholders.
My retirement plan is to get my ROTH up to at least 250K in value and generate the bulk of my retirement income through it by investing in high yield dividend income stocks.
High dividends will generate a good rate of income over long spans of time.
Essentially, the new rental income generated by the properties bought with new debt or issued shares isn't high enough (due to low cash yields on new properties) to offset the greater share count, which raises the cost of the dividend.
Management has turned this seemingly sleepy business into one that generates high margins, throws off lots of free cash flow for dividends and buybacks, and provides returns on equity in excess of 20 %.
That also explains why Emerson has been able to generate strong cash flow and pay out higher dividends to shareholders year after year for more than six decades.
I'll continue to keep my eyes open for safe, income - generating opportunities like this one — especially during earnings season, when high - quality dividend growers can temporarily go on sale and when volatility can send options premiums soaring.
A business model generally has to be fairly wonderful by design in order to generate the regularly increasing profit necessary to sustain higher and higher dividends for years (or even decades) on end.
At a high - level, I see QCOM as a conservatively capitalized (Debt / Equity = 36 %), free cash flow generating (FCF = ~ $ 5B 12 - months YTD), financially stable company (A + / Stable, A1 / Stable), who recently grew their dividend by over 10 %.
Bottom Line: Either way this «10 % Trade» works out offers me the opportunity to generate a 10 % - plus annualized yield from Wells Fargo (WFC)-- a high - quality, dividend growth stock that appears undervalued at current prices.
They still manage to generate about $ 5,000 each in interest income from money market funds and high interest savings accounts and their total investment income from dividends and interest on the account is $ 160,000.
It is quite possible that, even with their added costs, they will generate higher after - tax returns than traditional ETFs whose distributions are interest or foreign dividends.
Generate a cash income by investing in companies that have a history of paying good dividends (high yield).
By its very nature a «10 % Trade» is designed to generate extra income from high - quality dividend growth stocks.
Contributions to those accounts (401K, IRA and RRSP) not only allow you to deduct from your taxable income and generate higher returns during tax season but also the funds sitting in those vehicles will compound extremely faster than normal investing accounts as the dividends and capital gains are sheltered from taxes.
Adding the market's highest paying dividend stocks to your portfolio can be a huge help in generating regular income in today's ultra-low yield environment.
They generate lots of cash that you can use to pay dividends to your shareholders or you can invest in new high - return, attractive projects.»
The other thing I would suggest is to consider the tax implications of each investment and then balance them across multiple accounts; ie, the stuff that generates interest and that is taxed at the highest rates (Bonds, GICs, REITs) goes in your TFSAs, International stuff goes into your RRSPs so there's no withholding of foreign dividends, and stuff that generates Canadian dividends goes in your taxable account to get the Canadian gross up tax dividend.
This is because they're filled with high - coupon corporate bonds, real - estate investment trusts, and high - dividend foreign equities, all of which generate a lot of fully taxable income.
Since dividends are continuously and periodically generated, you are likely to even purchase stocks using your dividends during bear market conditions, resulting in higher dividend income (remember the internal compounding example in Part 3?)
Using Stockscreen123 I started with the entire universe of stocks excluding over-the-counter, I ran the following screen to generate a list of 12 potential high yield, dividend growth stocks.
My long - term plan is to buy and hold high - quality dividend paying stocks in order to enjoy the flexibility offered by the passive income stream generated by regular dividend payments.
Only the most stable, blue - chip, dividend - paying stocks should be purchased, and even then you should write in the money calls with your only goal to generate a return higher than the borrowing cost.
Indeed, I lived way below my means and invested my excess capital in high - quality dividend growth stocks for six years straight — and I'm now in a position where my real - life portfolio generates enough dividend income to cover most of my core personal expenses.
Additionally, you may not always earn a higher total return than investing in an index, but your odds of generating a greater dividend income stream are greatly in your favor.
Williams Companies (WMB) had paid higher dividends each year since 2004, grown its dividend by 38 % per year over the last five years, and earned most of its income from regulated assets generating «safe» fee - based revenue from long - term contracts.
This portfolio generates this income passively because the portfolio is chock - full of high - quality dividend growth stocks.
«I am a registered investment advisor and focus on buying high quality dividend growth stocks to generate safe income for my clients.
Think of it like this: If you have $ 30,000 in a tax - free account with dividends reinvested, you can put yourself in the position to have 8.5 % annual growth plus 1.5 % returns coming from dividend reinvestment, so you could realistically compound your money at 10 % annually over that time frame, due to the nature of high - quality cash generating businesses mixed with long periods of time and tax - favored holding structures.
This is because Warren believes he can generate higher returns (in intrinsic value and in turn eventual share price) through investing in the purchase of new businesses, rather than the returns to shareholders through payment of a dividend.
In short, a «10 % Trade» is a term Phil and I coined for a conservative income - generating technique that involves selling either a covered call or a put on a high - quality dividend growth stock.
A dividend fund is one that buys stocks with higher than average dividends with the main objective of generating income for the owner.
Buffet believes that he can generate a higher annual return for investors by investing the profits than paying out a cash dividend.
All of the banks generate more income via their dividend yields than they offer on their «high interest» savings accounts, albeit with more risk.
Since 1951 the high dividend yield value decile has generated a compound annual growth rate (CAGR) of 11.4 percent and an average annual return (AAR) of 13.6 percent.
I knew if I could invest enough money into these high - quality companies, and generate enough growing dividend income, I could become financially free.
Did you know that the higher dividend yielding stock might generate less income?
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