Not exact matches
The main reason
high prices foretell paltry gains is that rich valuations
make dividend yields smaller.
The
high dividend yield relative to peers naturally
makes me question the safety of the
dividend.
Very few investments like this will be
made in my case (you can read my case against
high dividend yield here).
High -
dividend stocks such as utilities and phone companies fell; those stocks are often compared to bonds and they tend to fall when bond
yields rise, as
higher bond
yields make the stocks less appealing to investors seeking income.
Choose how you want to
make money by following as many as five strategies:
High -
Yield,
Dividend Growth, Low Risk, Real Estate, Options, and Bonds strategies
In the short run, anything's possible for the market, and so
making a purchase of Vanguard
High Dividend Yield ETF right now isn't sure to
make you big money in the next month or even the next year.
That's
made some investors think twice about whether Vanguard
High Dividend Yield is really a good buy right now.
IBM's
dividend probably won't grow quite as fast as some of these other tech companies, but the much
higher yield more than
makes up it.
Acquired for a good price and by reinvesting the
dividends of these
high yielding stocks, they can
make very attractive long term investments.
The valuation is neither entirely unreasonable nor unusually appealing, but compared to the fairly
high valuation of the market currently, it may
make a good choice for a stock with a decent
dividend yield (3.43 %) and consistent
dividend growth history.
Few investments like this will be
made in my case (you can read my case against
high dividend yield here).
To screen for «
dividend growth» shares that may have lower starting
yields but have more potential to grow future payouts at
high rates, we simply need to
make a few adjustments to our screening parameters.
The current
yield of 1.55 % might not be massive like AT&T's
dividend (which is why we diversify, and it's why I'm listing 10 different stocks with different dynamics here), but Walt Disney more than
makes up for that via strong
dividend growth: the five - year
dividend growth rate is 30.1 %, which is one of the
higher rates you'll run across.
During the stock - market rebound that started in mid-March, Hutchinson's calls on gold, commodities and
high -
yielding dividend stocks
made winners of investors who took his advice.
• Excellent on certain
dividend categories, including 43 straight years of increases, low payout ratio, and
highest yield ever available • Declining number of shares over the past 10 years
makes each remaining share worth a
higher percentage of the company.
Bookmark Monevator.com now to follow the rest of the series, where we'll look at what
makes a good
dividend paying share, how
High Yield Portfolios (HYPs) of blue chip
dividend payers have fared in the past, and explain how to construct your own portfolio.
Question: when you say «I do
make exceptions and own both
higher and lower
yielding dividend stocks», why do you generally steer away from
dividends higher than 5 %?
But the rising
dividend and
high yield are not enough to
make the stock a buy.
The strategy of
dividend reinvestment is one of buying
high yielding shares and then reinvesting those
dividends to give a compounding effect on returns
made.
Yet, I do
make exceptions and own both
higher and lower
yielding dividend stocks.
Generous
yields, relatively low volatility, and steady
dividend growth can
make certain REITs some of the best
high dividend stocks for investors seeking retirement income and capital preservation.
Sharebroker Charlie Aitken is taking a more upbeat view on the major Australian banks, saying the sector's
high dividends makes it a good bet in an environment of record low
yields.
The positions the bloggers and commentary took against reinvesting
dividends centered on whether the stock price would be good at the time of the reinvestment; and it mentioned strategies like pulling the
dividends out and either putting them into a
high -
yield savings account or accumulating them until such time there was enough to
make a new investment into some other stock or stock fund.
Abbot Labs
dividend growth is what
made Grace Groner a very wealthy woman not its
high current
yield.
Thrown into one of the hottest markets for
dividends in decades, the SuperDividend ETF is
making waves with investors who are after global
high -
yield exposure.
It's called the Vanguard FTSE Canadian
High Dividend Yield Index ETF (VDY) and it makes monthly dividend payments that these days offer an annualized yield of about 2.4 p
Dividend Yield Index ETF (VDY) and it makes monthly dividend payments that these days offer an annualized yield of about 2.4 per
Yield Index ETF (VDY) and it
makes monthly
dividend payments that these days offer an annualized yield of about 2.4 p
dividend payments that these days offer an annualized
yield of about 2.4 per
yield of about 2.4 per cent.
Acquired for a good price and by reinvesting the
dividends of these
high yielding stocks, they can
make very attractive long term investments.
And don't forget: steady
dividend hikes not only
make a stock more alluring to new income investors, but also reward existing investors with increasingly
higher yields on shares purchased at lower prices in the past.
That's why we recommend that you look beyond
dividend yield when
making investments in
high growth
dividend stocks, and look for
dividend stocks that have also established a business and have at least some history of building revenue and cash flow.
The
high dividend yield of BCE, AT&T, and Verizon Communications
makes each ideal for long - term investing.
This
higher yield also positively impacts total return, as total return is simply
made up of capital gain and
dividends / distributions.
In contrast, US equities
make up approximately 48 % of the Value Fund and roughly 20 % of the Worldwide
High Dividend Yield Value Fund.
PS: There is good marks for VHDYX (Vanguard
High Dividend Yield) also... this
makes me more happy because I have invested in this also.
The Buffalo
High Yield Fund (BUFHX) was included in an article on Seeking Alpha, which analyzed income funds that preserved principal from 2006 - 2016,
making note of the special year - end
dividend the Fund pays annually.
Exxon Mobil is a
dividend investor's dream, with one of the
highest dividend yields (more than 3.6 % at the time of writing) among its peers on the Dow Jones Industrial Average; the oil producer has raised its
dividend for three consecutive decades,
making Exxon Mobil one of the premier income - oriented value plays on the market today.
We
made a bunch of good buys earlier this year, combined with some
higher yielding securities (REIT ETFs) and some «value» based indexes
make for some pretty good
dividends / distributions.
The selloffs and turmoil currently roiling the world's markets
makes for a great time to buy stocks at a discount (and hence a
higher dividend yield).
REITs pay out a stream of income produced from the properties with
high yield dividend payouts (minimum of 90 % by law) to shareholders,
making this type of investment incredibly attractive.
The current
yield of 1.55 % might not be massive like AT&T's
dividend (which is why we diversify, and it's why I'm listing 10 different stocks with different dynamics here), but Walt Disney more than
makes up for that via strong
dividend growth: the five - year
dividend growth rate is 30.1 %, which is one of the
higher rates you'll run across.
BMO Covered Call Canada
High Dividend ETF Fund — makes direct or indirect investments in dividend - paying Canadian equities with a covered - call overly to provide addition
Dividend ETF Fund —
makes direct or indirect investments in
dividend - paying Canadian equities with a covered - call overly to provide addition
dividend - paying Canadian equities with a covered - call overly to provide additional
yield
Strategies commonly employed in tax - advantaged portfolio management, where tax considerations are consistently factored into ongoing decision
making, include deferring sales, harvesting losses, selecting
high - cost - basis lots for sale, transferring assets internally to circumvent wash - sale rules, timing purchases to avoid
dividends, and holding low -
yielding stocks, among others.
In addition to a great annual percentage
yield (APY), Money Market Savings
makes it easy to earn
higher dividends as your balance grows.
Ian de Verteuil an analyst at Nesbitt Burns recently cut Scotia Bank (BNS.to) to an underperform which sent down the stock about 6 % and being my largest bank holding put a dent into my portfolio.This downgrade
made me a little worried about the banks
dividends, so far no Canadian bank has cut or
made any indication of cutting their
dividend, but the
high yields (as
high as 10 % on some) causes some worry.
Meanwhile the
yield of 1.9 %, while not enough to
make this stock suitable for living off
dividends during retirement, is more than twice as
high as its average
yield of 0.8 % over the past 22 years.
Pair that with a
high yield, it
makes up 12 % of my yearly
dividend income.
When pursuing a
dividend strategy, it
makes sense to replace a holding that has gotten far ahead of itself (now having a low
dividend yield) with a solid company that pays a
higher dividend yield.
While the
high dividend yield is atttractive, we want to
make sure that the company has the ability to grow its
dividend at above average rates for a long time.
Question: when you say «I do
make exceptions and own both
higher and lower
yielding dividend stocks», why do you generally steer away from
dividends higher than 5 %?
Above - average current
yield and expectations for above - average earnings growth out to fiscal year - end 2018
makes slow - growing
high -
yielding SCANA an intriguing
dividend growth stock opportunity.
Since REIT
dividends get taxed at the ordinary income level, when you are in lower tax brackets the fat
yields easily
make up for the taxes you pay, but as one climbs into
higher tax brackets, taxes can start taking a pretty large bite out of those
dividends.