This $37 billion automotive juggernaut has it all: a dividend yield that's crushing the markets and the cash flow to maintain it.
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.
What Are Dividend Stocks?
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.
Why Invest In Dividend Stocks?
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.
Which Dividend Stocks Should I Buy?
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.
- 3 Top Dividend Stocks to Buy in November 2018
- Three High Dividend Yield Stocks to Boost Your Retirement Income
- 3 Income Stocks You Need in Your Portfolio
- This Iconic Dividend Stock's New Acquisition Could Supercharge Your Portfolio
- 3 of the Best Dividend Stocks to Buy in 2018
- 30 Top Dividend Stocks for 2018
- 3 Top Dividend Stocks to Buy in September 2018
- 3 Top Dividend Stocks to Own Before September
- 3 of the Best Dividend Stocks to Buy in August 2018
- 3 of the Best Dividend Stocks to Buy Now
- You Can Still Cash In on Dividend Hikes During a Trade War
- This Company Just Hiked Its Dividend 42% and Hit Our Buy Zone
- These Are the 3 Most Overlooked (and Profitable) Dividend Stocks on the Market
- 3 Top Dividend Stocks to Buy in June 2018
- This Undervalued Dividend Stock Just Flashed a Huge Buy Signal
- 5 "Name Brand" Dividend Stocks You Can't Live Without
Securing reliable income is one of the most important strategies for building retirement wealth.
That's why we're going to show you the top dividend stocks to buy in November.
High dividend yield stocks are now more important for your portfolio than ever thanks to the stock market’s wild ride over the last week.
The Dow plunged more than 1,200 points over the last week as investors flee stocks for safe-haven assets.
If you're a retiree or on the verge of retirement, it's critical to think about the best ways to build and preserve your capital.
The easiest answer is to own income stocks that can generate huge annual dividends and have significant potential for share appreciation.
One of the world's most recognizable companies is still growing its core brands at a fast clip.
Plus, a new acquisition gives it a leg up in the fastest-growing segment in its industry.
With stock valuations soaring to record highs, owning stocks with high dividend yields is a great way to add a performance boost to your portfolio.
We just released our list of 30 dividend stocks to buy in 2018.
And this isn't just a list of random companies.
Investors are always looking for the top dividend stocks to buy.
It's not easy, which is why we are doing all the hard work for you.
What are the top dividend stocks to buy?
That's a question we're getting a lot lately. We know investors are looking for reliable income sources.
Every investor want to own stocks that can provide a reliable source of income and appreciate over time.
That's why we're bringing you the three best dividend stocks to buy in August 2018.
These three stocks represent companies that have the kind of robust financials that ensure regular returns and the growth potential that can increase asset value - and your profits.
In today's market, it's more important than ever to have income you can rely on.
Today, we're bringing you three of the best dividend stocks to buy now.
During times of uncertainty, investors seek out the best dividend stocks to own.
That's because they serve as a consistent source of income.
There are volatile price swings in the market right now, but dividend stocks are still paying their shareholders.
In fact, we uncovered one dividend stock that just hiked its payment by 42%.
The U.S. Federal Reserve may be pushing short-term interest rates higher, but the fact remains that these rates are still incredibly low.
Parking money in the bank yields almost nothing.
And bond yields are not much better.
The benchmark 10-year Treasury note only offers a stingy 2.84%.
Nobody gets rich on 2.84%. That's why divided stocks are in such demand.
Every portfolio should include reliable dividend stocks as a way to supplement your income.
And the top dividend stocks to buy in June could reward investors with gains of up to 280%...
Best of all, our top dividend stocks for June all have products their customers need.