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.