Such a high dividend growth rate is supported by the company's strong earnings growth.
I wanted to understand why they had
such a high dividend yield.
A 3 % yield with
such high dividend growth is surely a winner.
The sheer ugliness of its business partially explains why it sports
such a high dividend yield at well above 8 %.
This is why MLPs pay
such high dividends.
Dividend stocks with
such high dividends are highly volatile, you will run out of collateral to cover your trades very quickly
Not exact matches
Exchange traded funds (ETFs),
such as the iShares Short Maturity Bond ETF (NEAR), the iShares MSCI USA Quality Factor ETF (QUAL), the iShares Core
Dividend Growth ETF (DGRO), and the iShares MSCI Japan ETF (EWJ), can provide access to short duration bonds,
high quality companies, and Japan.
Investors have long known that a
high -
dividend strategy has been subject to various «yield traps,»
such as those stemming from temporarily
high earnings,
high payouts or falling stock prices.
Our general take on equities remains that valuations are somewhat on the
high side, but with a dearth of investment alternatives,
dividend - paying blue chips,
such as those emphasized by the Dogs of the Dow strategy, remain an attractive option.
I haven't looked into the
dividend sustainability, which should be done for
such a
high yield.
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.
I appreciate your argument about how certain
dividend stocks will never be able to to match the returns of
high growth stocks
such as Tesla.
These are just a few reasons why buying and holding
high - quality
dividend growth stocks is
such a great way to think about income, essentially «future - proofing» oneself.
Whereas the cash flow statement and balance sheet are still very important considerations in the
High Yield
Dividend Newsletter, we put put a greater focus on credit assessments and qualitative, subjective considerations given the riskier nature of
such higher - yielding ideas, both with respect to income sustainability and subsequent valuation (share price risk).
In buying stocks I try to maintain a balance between
high yielders (
such as most REITS) and low yielders with above average
dividend growth rates (stock like SBUX, DAL).
As
such,
dividend growth in the next few years certainly won't match that last few, but I'm very content with that given the exceedingly
high current yield, my
high confidence in Textainer to ride the storm through to better times, and ultra-safe P / E and reasonable payout ratio.
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.
This forced investors to seek income from «bond - surrogate» investments
such as
high -
dividend - paying stocks,
high - yield bonds, levered loans and real estate.
There are other real world factors that could drive down an ideal international allocation,
such as taxation (
dividend investors may prefer a
higher allocation to domestic stocks due to more favorable tax treatment).
Investments
such as convertible bonds, preferred stocks, and
dividend - paying stocks have
higher correlation to the equity markets and are more subject to equity sensitivity than fixed income investments
such as U.S. Treasuries.
One reason is that they tend to focus on traditional «value» metrics,
such as a low price - to - earnings ratio, a low price - to - book ratio, or a
high dividend yield.
That is, set up your investments for direct withdrawal from your checking or savings account, reinvest
dividends, and focus on only buying the lowest risk,
highest quality, most attractively valued stocks or index funds
such as one based upon the S&P 500.
But today, their
high dividend payouts make these stocks attractive bond substitutes, and as
such, they sell at much
higher P / Es than they have historically.
As a result, the biggest losses went to
high -
dividend companies
such as utility and real estate companies whose stocks become less appealing than bonds to investors seeking income.
Typically, it connotes the purchase of stocks having attributes
such as a low ratio of price to book value, a low price - earnings ratio, or a
high dividend yield.
Such distributions are taxed at a
higher tax rate than long - term capital gain or qualified
dividends.
Value stocks: companies that appear to be underpriced based on a number of fundmental factors,
such as low price - to - earnings and price - to - book ratios or
high dividend yield
As expected, Aston Villa started with a
high tempo and tried to put us under serious pressure, which paid
such dividends for Borussia Dortmund in the week.
Dependents who have unearned income,
such as interest,
dividends or capital gains, will generally have to file their own tax return if that income is more than $ 1,050 for 2017 (income levels are
higher for dependents 65 or older or blind).
History shows that times of
high market volatility are good times to be in growth investments
such as
dividend - paying stocks.
You can also find strategy indexes that allow you to invest for specific goals,
such as low volatility or
high dividend return.
The clear investment implication is to begin reducing risk in your stock portfolio — either by building up cash or shifting your holdings toward more conservative stocks,
such as those with strong balance sheets and which pay
high dividends.
Speculative traders who focus on
high - risk,
high - reward stocks (
such as penny stocks) are more heavily scrutinized than someone who invests in blue - chip,
dividend paying companies that are held for the long term.
Many
such index funds are available including
high dividend yield index funds,
dividend appreciation index funds,
dividend «aristocrat» index funds,
dividend «select» index funds, etc..
I have no concern about the declining
dividend growth rate, because it started from
such a
high rate to begin with.
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.
However, there may be reasons for
high dividend yield (
such as the expectation that the
dividend doesn't grow year after year much).
Now that we see the power of
dividend growth investing, and now that we see why an undervalued
dividend growth stock can be
such a compelling opportunity, let's take a look at a
high - quality
dividend growth stock that appears to be undervalued...
Consistently with the stock holdings of the analyzed portfolio, the reference portfolio comprised large - cap equity ETFs,
such as the Guggenheim S&P 500 ® Top 50 ETF (XLG), PowerShares
High Yield Equity
Dividend Achievers Portfolio (PEY), PowerShares
Dividend Achievers Portfolio (PFM), and iShares Morningstar Large - Cap Value ETF (JKF).
Therefore, I ease the grading on
dividend growth characteristics, because you are starting out with
such a
high yield.
Some
dividend growth investors,
such as myself, like to have a mixture of types in their portfolios: Some
higher - yielding, others faster - growing.
However, investors who are willing to accept currency risk can find several lower - cost choices among US - listed ETFs,
such as the Vanguard
High Dividend Yield ETF (VYM).
At
such prices, you should be able to buy many
high quality (blue chip) stocks at extremely attractive
dividend yields.
Still, some popular
high - yielding asset classes (
such as traditional
dividend - paying stocks and REITs) could potentially suffer as rates begin to slowly trend
higher.
Such aggressive
dividend growth is why Texas Instruments is still yielding nearly 2.4 % despite its price going ever
higher and
higher.
A
high dividend yield signals out - of - favor stocks, but many
such stocks are out - of - favor for good reason — they are financially troubled.
These are income investments
such as Master Limited Partnerships MLP (especially pipelines), equity REITS,
high yield bond funds and special situations
such as tankers (which have
dividends that fluctuate greatly).
There are other real world factors that could drive down an ideal international allocation,
such as taxation (
dividend investors may prefer a
higher allocation to domestic stocks due to more favorable tax treatment).
When companies pay
high dividends to their shareholders, it can indicate a variety of things about the company,
such as that the company might currently be undervalued or that it is attempting to attract investors.
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»).