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.
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.
13,650 dividend stocks trade on various US exchanges, and the dividend stock with the highest yield right now is Site Centers Corp, paying a whopping 375.96% Dividend Yield. But, just because it has a high yield, doesn’t necessarily mean it’s a buy. In this article, I’ll cover the highest-yielding dividend stocks worth buying. You’ll learn … Read more
Do you want to invest in the best dividend stocks, but not sure which ones to choose, or if now is the right time? Why not look for oversold Dividend Kings? In this article, I’ll show you a super easy way to pick stocks – and even your grandmother can do it. Then, I’ll show … Read more
Geopolitical risks, tariffs, and angry heads of state are the catalyst for the most recent market pull back – and that’s actually good thing for those looking to pick up quality names, at a discount. My favorite companies are those with predictable and solid financials, stability, and those that reward shareholders. Dividend Aristocrats—companies that have … Read more
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
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
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
Dividend growth investors may be familiar with the Dividend Aristocrats, a group of blue-chip stocks in the S&P 500 Index that has each raised their dividends for at least 25 consecutive years. But there is a lesser-known group of stocks with even more impressive dividend streaks. This exclusive group is known as the Dividend Kings. … Read more
Many stocks pay dividends, but investing in the right ones can be challenging. For example, what if you’re looking for a specific payment schedule? The stocks listed in this article pay dividends each February, May, August, and November. But that’s not the only thing to consider when buying dividend stocks. When looking for stocks that … Read more
Do you have a goal to live off dividends? Perhaps you’ve seen other videos on the topic or read other blog posts about how you’ll need millions of dollars to get there. But how is that possible today? This article will cover generating $50k, 100k, $500k+ in dividends a year. Now, it’s not something that’ll … Read more
Income investors are always on the hunt for high dividend yields. But with stock prices at record highs, the average S&P 500 dividend yield is just 1.5%. And with interest rates near historic lows, income investors are starved for yield. This explains the obvious appeal of high dividend stocks. However, investors should also try to … Read more
Stay in Touch With Us
Get latest from The Financially Independent Millennial in our Friday Newsletter
