Sentences with phrase «high dividend stocks because»

Many investors have a preference for high dividend stocks because they feel this cash is more «real» than paper profits.

Not exact matches

Because a falling stock price typically represents poor business fundamentals, a company with a temporarily high yield is often a company that is about to cut its dividend.
That's because being able to buy a high - quality dividend growth stock when it's undervalued confers a lot of benefits to the long - term investor.
When the market becomes extremely volatile, high dividend stocks become attractive to many investors because of their more certain payouts.
Dividend stocks are enticing to investors during periods of volatility because in such a market they tend to perform well relative to more growth - oriented or higher - risk equities.
We think they're attractive because they have faster rising earnings, higher dividend yields and lower valuations than U.S. stocks, and they can benefit as global growth accelerates.
This predictive power is strong for speculative stocks with highly subjective valuations (small - capitalization stocks, stocks without positive earnings, growth stocks and stocks that pay no dividend), because their prices tend to be most overvalued when sentiment is high.
We've always placed a high value on dividend stock investing at TSI Network, mainly because it provides something of a..
For example, a dividend stock's yield could be high simply because its share price has dropped sharply in anticipation of a dividend cut.
We've always placed a high value on dividend paying companies, mainly because it provides something of a pedigree for stocks we recommend.
When looking for stocks with high dividend yields, you should avoid the temptation of seeking out stocks with the highest yields — simply because they have above - average yields.
Be skeptical of the highest - yielding stocks because they're often at risk of a dividend cut.
«That's why we encourage a balanced portfolio that would incorporate high - quality, dividend - paying stocks, because dividends are taxed at a lower tax rate, and also blue - chip equity stocks provide a natural hedge to inflation pressures,» she said.
Coke is a special case because it is both a high current - dividend stock and a serial dividend grower.
It is a conditioning screen for the dividend yield scan because, by itself, it does not indicate if the dividend yield is high or low, nor will it indicate if the stock is priced attractively.
For example, conservative or income - seeking investors may want to emphasize utilities and Canadian banks in their portfolio diversification, because of these stocks» high and generally secure dividends.
We've always placed a high value on dividend stock investing at TSI Network, mainly because it provides something of a measure of safety for stocks we recommend.
While there is a «buy low, sell high» component to dividend investing (because you won't hold a stock forever), the main emphasis is on long - term performance.
The key aspect of looking at dividends yields is that the yield shouldn't be high because of a beating that the price of the stock has taken.
We've always placed a high value on dividend stock investing, mainly because it provides something of a pedigree for stocks we recommend.
And the reason that tobacco stocks have been such great wealth - creation vehicles in recent decades is because they have been perpetually priced as high - dividend value stocks (see «The Price of Sin»).
That's partly because they have higher dividend yields than gold stocks.
However, I give «partial credit» to stocks between 1.5 % and 2.99 % because a moderate yield combined with high dividend growth can be just as good (or better) than a high initial yield.
Because of two remaining dividend payments of my biggest holding Royal Dutch Shell and the scheduled purchase of another high dividend stock, I haven't given up hope yet to still reach my goal for 2017.
This won't work with high dividend foreign stocks because their dividends are fully taxed.
That's because being able to buy a high - quality dividend growth stock when it's undervalued confers a lot of benefits to the long - term investor.
Because the interest you get from bonds is taxed at a much higher rate than the capital gains and dividends you get from stocks, and those extra taxes drag down your returns.
Generally avoid stocks with the highest yields because often that indicates the dividend is at risk and growth prospects are low.
Because dividends from U.S. and international equities are fully taxable, you generally want to tax - shelter foreign stocks with high yields.
A dividend - based strategy is likely to come very close to matching the high, long - term return of the stock market because it can tolerate a very high percentage of stocks.
In fact, one reason many companies have overly high yields is because the stock price has fallen significantly, usually due to a loss in future earnings power, and this means the yield has moved up, but only temporarily, as the market is pricing in a dividend cut.
When looking for stocks with high dividend yields, you should avoid the temptation of seeking out stocks with the highest yield — simply because they have above - average yields.
I gravitated towards high - quality dividend stocks because you only have to make a decision once and the ownership process is satisfying in the same way that planting an oak tree on the family farm and watching it grow for decades is satisfying.
I have a huge credit card debts because I take advantage of low balance transfer promotion rate and invest in high quality dividend stocks.
This portfolio generates this income passively because the portfolio is chock - full of high - quality dividend growth stocks.
The highest dividend stocks in the market are usually yielding so much because they're very high risk — many of the energy stocks that offered double - digit yields at some time in the last year have since reduced or eliminated their dividends, for example.
Because it only takes a few years of collecting solidly high dividends to severely mitigate the risk that falling stock prices can have in making you feel as if you are moving backwards.
(Barron's: Aug 1, 2016) Barron's said many dividend ETFs have outperformed the S&P 500 over the past 12 months, mostly because of their large allocations to utility stocks, which pay high dividend yields and which have appreciated significantly this year.
They are covered calls on low payout ratio stocks identified by Aaron Levitt as good dividend candidates because of their relatively high yields and low ratios.
Try to avoid accumulating a portfolio of bank stocks, pipelines and telecoms simply because they have high dividends.
For instance, screening for stocks with high dividends and low PE ratios will yield a portfolio that may have much higher tax liabilities (because of the dividends).
When the stock price rises, it's because someone today expects higher future dividends than they did yesterday.
Once again, Manulife is part of our B - team of top dividend stocks, in part because its current yield at 3.4 % is below some of its peers and trades at a slightly higher valuation.
You never hear people say you should avoid stocks because their dividends might get higher.
That's because high - tech firms are becoming some of the best dividend stocks to own while still offering lots of new growth.
But it's not a risky strategy, overall, because many high - quality dividend growth stocks are blue - chip stocks.
A higher current yield compared to the stock's historical average suggests better valuation, because dividend yield is higher when price is lower, all else equal.
As interest rates have fallen, REITS have provided a higher dividend yield than stocks (on average), because they have to pay out 90 % of their profits.
This allows higher exposure to technology stocks, which typically are underrepresented in dividend ETFs because their shorter history precludes them from meeting the 20 - year dividend criteria.
So people who maybe in the past used to own corporate bonds now own dividend stocks, indiscriminately, because the yields there are higher than some corporate bonds.
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