Dividends

Dividend investing is a type of investing that focuses on stocks that pay regular dividends – usually on a quarterly basis. These stocks tend to be stable and generate consistent income. And it makes them ideal for investors who are looking for a reliable source of passive income. Further, some investors can increase yield by applying a covered call strategy for additional income.

Dividend stocks can be found in a variety of industries. But, some of the most popular sectors for dividend investors include utilities, healthcare, and consumer staples. While these stocks tend to be less volatile than other types of stocks, they still offer the potential for capital appreciation over time.

For investors who are looking for a more hands-off approach to investing, dividend reinvestment plans (DRIPS) offer a way to automatically reinvest your distributions and grow your position in a company over time. DRIPS are available for most dividend-paying stocks. And, they can be an easy way to build a diversified portfolio of income-producing assets.

If you’re thinking about adding these types of stocks to your investment portfolio, there are a few things to keep in mind.

Rules To Dividend Investing

First, invest in quality companies, like the Dividend Aristocrats, or Dividend Kings. These are companies that have raised their distributions for each of the past 25 or 50 years, consecutively.

Second, it’s important to remember that the income is not guaranteed and can be cut or eliminated at any time. Second, these stocks tend to be more sensitive to interest rate changes than other types of stocks, so it’s important to monitor the direction of interest rates when making your investment decisions.

Finally, while dividend stocks can provide a valuable source of income, they shouldn’t be the only type of investment in your portfolio. A diversified mix of assets is always the best approach to investing.

Dividend Zombies: 19 Companies With 100+ Years of Dividends

dividend zombies

Looking for dividend stability? A selected group of companies, called “dividend zombies,” have a peculiar history of rewarding their shareholders—by paying steady or increasing dividends for over 100 years without interruption. These companies have survived the Great Depression, multiple recessions, financial crises, and wars. Their consistent payouts show financial discipline and commitment to shareholders. List … Read more

15 Dividend Stocks For Retired Folks

Retired Folks celebrating achieving financial freedom

Financial independence is an important goal — and it’s much more so for retirees. A retiree’s investment portfolio should ideally be geared towards higher, more consistent income through dividends. This helps offset their lack of employment income and helps cover the costs of necessities, especially in the face of rising housing and healthcare costs. However, … Read more

3 Everyday Retail Stocks Yielding Over 3%

a retired senior citizen couple searching for travel discounts online

Retail stocks are down along with the rest of the stock market. The SPDR S&P Retail ETF (XRT) has declined approximately (-32%) year-to-date (YTD). Some retail stocks are down even more. Many retail stocks benefitted during the COVID-19 pandemic as consumers spent their savings and Federal stimulus dollars online. However, the tailwinds are subsiding and … Read more

3 MLPs With 7%+ Dividend Yields And Safe Payouts

a couple who are celebrating buying a home after bankruptcy

Investors need to be careful when selecting high-dividend stocks. An outsized dividend yield is sometimes a sign of danger. When a stock price crashes, its dividend yield rises. Therefore, there are times when a high yield is simply the result of a collapsing share price, possibly an indication that investors are expecting a future dividend cut. … Read more

12 Dividend Stocks That Offer Monthly Dividends

family happy about getting a child tax credit

Most dividend stocks made payments to shareholders on a quarterly basis. But not all companies pay quarterly dividends. In rarer cases, companies may pay dividends to shareholders annually or semi-annually. There is an even more appealing group known as monthly dividend stocks. These are stocks that pay dividends once a month, equating to 12 dividend … Read more

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