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The stock market isn't complicated when the figures are clear, and when it comes to the top dividend stocks today, the numbers are clear as crystal – dividend stocks are an easy way for investors to net solid returns from their investments.
"Many people are surprised to learn that dividend income and reinvestment can account for nearly 90% of total stock market returns over time," Money Morning Chief Financial Officer Keith Fitz-Gerald said. "When it comes to consistently growing and protecting our money, I'd rather focus on getting the cold, hard cash that dividends kick off. That's because I know those are a much bigger component of overall investment returns over time.
In some cases, the dividends are so steady and increase so much that over time, you can actually make more in dividends than you originally paid to buy the stocks that produced them.
A sure way to choose the best dividend stocks today is to look at the company's performance over time. Among the available numbers, consider dividend yield – defined as the total value that a stock has gained over the financial year that has passed. This percentage value is at the heart of an investor's selection of one dividend stock over another.
Investors should also consider dividend growth, current price, annual dividend indicated, as well as the ex- dividend details.
Here are three top dividend stocks today, in terms of high dividend yields as an indicator of strong performance…
Three High-Yielding Dividend Stocks Today
1. The New Germany Fund Inc. (NYSE: GF)
Of the three dividend stocks we examine today, GF earns top marks as the highest-yielding, at 47.22%. The New Germany Fund is currently priced at $19.13 per share, and the indicated annual dividend is $8.962.
With a history of steady performances, this stock is definitely a jewel for any investor. GF's performance over the years has been satisfactory; investors should feel confident in putting money in GF.
2. Park Electrochemical Corp. (NYSE: PKE)
Park Electrochemical ranks as one of the best dividend stocks today, with a current dividend yield of about 34.87%. PKE's price stands at about $29.27 per share. When it comes to the indicated annual dividend, the figure is $10 – good news for any investor looking to purchase the stock for promising returns.
3. SPDR S&P International Telecommunications Sector ETF (NYSEARCA: IST)
This stock ETF comes with a current yield of 36.23%, which is impressive to say the least. The indicated annual dividend is $9.52, with a current stock price of $ 26.69 per share.
With an exemplary dividend yield performance record, this is a stock that will not leave investors disappointed.
"Successful investing is a matter of continuous performance – NOT instantaneous performance," Fitz-Gerald said.
As Fitz-Gerald points out, building wealth through dividends takes time – but time is the one guaranteed asset you have to work with. Instead of constantly trying to cheat it, learn to work with it.