What are Dividend Stocks and Why Should You Invest?
Whether you’re new to investing or you’ve been in the game for a while, you’ve probably heard the advice: diversify your portfolio. It’s never a good idea to put all your eggs in one basket, especially when it comes to investing. One significant dip and you could lose a majority of your investment.
When you’re considering what to invest in, you want to look for a variety of different kinds of investments. Dividend stocks are a very safe and secure investment type to consider adding to your portfolio.
Dividend stocks are essentially a great way to get rich slowly.
Let’s start off with the basics; what are dividend stocks?
Dividend stocks are a type of stock you purchase from companies that pay out dividends to their stockholders. Each quarter, you receive a small payment for every share of a dividend stock you own.
The reason dividend stocks are so powerful is because the investor receives a small amount of money, consistently, and over a long amount of time. Dividend stocks are a long-term game. As an investor in dividend stocks, you want to look for companies that have a history of success and consistently high dividend payouts.
The answer is simple: dividend stocks are a safe investment.
The stock market can be volatile, meaning you’re taking a risk with your money when you invest. By investing in dividend stocks, you’re lowering that risk.
Dividend stocks are typically those of more established companies. In contrast, younger, faster-growing companies are reinvesting investor money into the company, instead of returning it to investors in the form of dividend payouts.
Dividend stocks, because they are part of more mature companies, tend to be less volatile than other stocks and they’re able to weather recessions and crashes with better success.
Now that you understand what a dividend stock is, you probably are wondering which dividend stocks to buy. As with every investment, there are some dividend stocks that are a better investment than others.
How do you know which those are? There are a few important factors to look at when choosing which dividend stocks are right for you to purchase.
Many investors’ first reaction when looking to purchase dividend stocks is to look at their yield. The yield is the ratio of the annual dividend compared to the current share price. Yield is expressed as a percentage.
While a higher yield percentage is valuable in terms of dividend stocks, it’s not the most important factor. It’s also important to assess dividend consistency and company growth over time. For example, you’ll find many companies with dividend yields above 5%. But, then there’s Johnson & Johnson, which pays a dividend yield of 2.6%. That sounds low, but when you see that the company consistently pays dividends and has increased its dividend for 54 consecutive years, you can see the wisdom of investing in lower yield, safe dividend stocks.
Dividend stocks are intended to be slow growing and consistent, so reliability is often more important than a high yield.
If you’re new to investments, you have an even safer option than dividend stocks. Instead of investing in dividend stocks from just one company and risking a failure, you can look for ETFs that specialize in dividend stocks.
If you’re still learning about investing, be sure to read through our articles on Dow stocks in addition to the below articles on dividend stocks.
Blue-chip dividend stocks are great for long-term income investors.
They make money during both the good times and the bad. This allows them to pay a steady stream of dividends to shareholders.
In our search, we've found two dividend stocks that are American classics. Although, one looks like a much better investing opportunity.
Blue-chip dividend stocks are great for long-term income investors.
They make money during both the good times and the bad. This allows them to pay a steady stream of dividends to shareholders.
In our search, we've found two dividend stocks that are American classics. Although, one looks like a much better investing opportunity.
It’s great to own a growth stock like Amazon or Google.
But these companies aren’t paying dividends right now.
Our best dividend stock to buy might not be a well-known tech giant, but it leads two markets poised to grow nearly 100% by 2024.
That means earnings growth of 154% for our top dividend stock pick.
Volatility has been roiling the markets recently, but it’s times like these when best high-yield dividend stocks to buy now help investors the most.
While the Dow Jones Industrial Average (DJIA) is down over 4% from its April highs, some dividend stocks are safe havens with strong, consistent yields.
It's been a wild ride for the market over the last month, but investors shouldn't worry.
You can turn this temporary downturn into profits with these three high-yield dividend stocks that pay over 4%.
But you'll want to get in now before they completely take off...
This month has seen an incredibly volatile market.
But the best way combat these fluctuations is is by buying high-yield dividend stocks.
So, don't worry.
We've got one that offers a whopping 8% yield.
The past week has been a roller coaster for the stock market.
But the best way to tackle all the volatility is by buying high-yield dividend stocks.
So don't panic.
We've got you covered with one that provides a whopping 8% yield.
With stocks sitting near record highs, many investors are shifting their strategies to strong,
reliable dividends for income. But they'll want to steer clear of the 3% to 5% dividend
range-our picks for the top high-yield stocks are closer to 6% and 8%.
Our pick today gives you the stability of a dividend stock along with huge potential for a share price breakout.
At least five factors are converging to drive this stock's price skyward.
Find out what they are - and why now is the perfect time to buy...
Yields on debt securities are dropping, and there has been a trend in the market toward greater risk and higher yield through stocks.
But many are also seeking less-risky alternatives to stocks in this volatile economy.
These investors should be looking at strong dividend payers.
If you're looking for the best dividend stocks to buy today, we have two real estate-related investments you won't want to miss.
Investors seeking to buy high-yield dividend stocks need to know where to look.
With market conditions mimicking pre-recession - an inverted yield curve, debts, and late payments on the rise - profiting from dividends looks more and more like striking gold.
Brexit, the trade war with China, the collapse of Venezuela, and even rising interest rates are all threats to the stock market's performance.
But you don't have to worry.
As we approach the end of the business cycle, investors are looking for the best dividend stocks to buy now to add some extra income to their portfolios.
Even if the stock market is volatile, a dividend-paying stock can keep money flowing into your portfolio.
Here are three of the best dividend stocks to buy today...
At some point, the longest bull market in history will end, but dividends will continue to pay no matter what the stocks do.
Knowing the top dividend-paying stocks can maximize your earnings, even in seasons of downturn.
Here are the best dividend-paying stocks to buy in 2019, including one that can double your money...
Investors are always seeking the secret weapon to help them achieve life-changing gains.
You can search forever for new strategies, but the truth the best system to find these types of gains is right in front of you.
With a potential bear market looming on the horizon, too many investors are overlooking an excellent defensive play against falling stocks: REITS.
