Income investing isn't just for the soon-to-be retired. Research shows that, when done right, it can generate market-beating returns. In this week's episode of Industry Focus: Energy, analysts Sarah Priestley and Jason Hall look at some of the best dividend stocks in the energy sector, from Big Oil giant Royal Dutch Shell (NYSE: RDS-A) (NYSE: RDS-B) to solar power yieldco 8Point3 Energy Partners (NASDAQ: CAFD) and more in between. Listen in to find out what makes each of these companies a good dividend play, their different strengths and weaknesses, and how investing in a combination of them can help you mitigate some of those downside risks and still see a great dividend return. A full transcript follows the video. 10 stocks we like better than Wal-Mart When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, the Motley Fool Stock Advisor, has tripled the market.* David and Tom just … [Read more...] about 5 Energy Dividend Stocks for Your Portfolio
Did you know that from the start of 1972 through the end of 2016, dividend stocks generated an average annual total return of 9.1%, while non-payers produced just a 2.4% yearly return? Not only that, but the same study by Ned Davis Research also discovered that dividend payers achieved that vast outperformance with significantly less volatility. That potential to earn higher returns without enduring such big price swings is why it makes sense to get to know as many dividend stocks as possible. Three stocks we think you should know are Starbucks (NASDAQ: SBUX), Oasis Midstream Partners (NYSE: OMP), and Cisco Systems (NASDAQ: CSCO).Plenty of growth still left in the tankBrian Feroldi (Starbucks): I would have never guessed that a great growth stock like Starbucks would ever boast an above-average dividend yield. However, that's exactly the situation that exists today. Starbucks' shares currently yield 2.11%, which is quite a bit higher than the 1.8% yield offered by the S&P 500 in … [Read more...] about 3 Dividend Stocks for In-the-Know Investors
Big oil is spitting out some big dividends these days. BP's (NYSE: BP) best-in-class dividend, for example, is currently yielding 5.7%. But just because it's the biggest doesn't necessarily mean it's the one investors should buy into. For my money, that award goes to Royal Dutch Shell (NYSE: RDS-A)(NYSE: RDS-B). Here's why. Finding the right dividend stock can help you reach your financial goals. Shell's is the best in big oil. Image source: Getty Images. Support structure When evaluating a dividend -- particularly a high-yielding dividend like Shell's, currently at 5.6% -- it's important to consider whether the company in question is able to cover its dividend with cash from operations. A dividend that is paid with debt or with one-time items like asset sales isn't sustainable over the long term, and may indicate that a dividend cut may be on the horizon. Indeed, the oil and gas industry has had a history of recent dividend cuts. Many independent oil and gas exploration … [Read more...] about Here’s the Best Dividend Stock in Big Oil
"Risky" and "Dividend Stocks" in the same headline might have you scratching your head. High risk isn't a concept that's usually associated with dividend stocks, right? Most shareholders think of dividend stocks as belonging to stalwart businesses that provide stable income over time. But General Motors (NYSE: GM) and Cameco Corp. (NYSE: CCJ) offer sizable risk right now -- and the sizable opportunity that comes with it -- all while rewarding investors with a dividend. Here's why you might want to consider them for your portfolio. Driverless vehicles The automotive landscape is poised to evolve rapidly toward electrified-vehicle fleets and autonomous vehicles. That makes General Motors' 3.6% dividend yield enticing at a time when Wall Street isn't sure if the automaker can take advantage of those opportunities. GM, however, is more optimistic about its ability to cash in on those trends, and others. General Motors is tackling autonomous-vehicle development through its acquisition … [Read more...] about 2 Risky but Potentially Lucrative Dividend Stocks
Dividend investors often look for stocks based on yield. Sometimes that can make you miss out on great investments simply because they don't meet a minimum threshold. And if you skip right past the best companies, that can hurt your returns. So we decided it would be well worth the effort to "lower" the bar for a change and find some of the best dividend stocks with yields around 2%. While a 2% yield won't make anyone rich (it will barely cover inflation), screening for dividend stocks at this starting point will help you find some of the best companies you can buy, many of which you might miss out on completely if you only look for a higher yield. Case in point: Three Motley Fool investors identified healthcare giant Johnson & Johnson (NYSE: JNJ), resurgent big pharma Bristol-Myers Squibb Co. (NYSE: BMY), and stalwart steelmaker Nucor Corporation (NYSE: NUE) as top dividend stocks for investors to buy. Keep reading to learn why you can look beyond the yield, and count on these … [Read more...] about 3 Top Dividend Stocks With Yields Over 2%
Great dividend yields come with great anxiety. Now that the average dividend-paying stock in the benchmark S&P 500 index offers a paltry 1.8% yield, most stocks that offer 4% are just too hot to handle. To help you sift through the haystack, we asked three Motley Fool investors each to highlight a stock that currently offers a yield of 4% or better. Here's why they think L Brands Inc. (NYSE: LB), AT&T Inc. (NYSE: T), and Realty Income Corp. (NYSE: O) are worth a closer look. Image source: Getty Images. A risky apparel stock Tim Green (L Brands Inc.): Thanks to a steep slump over the past couple of years, shares of apparel retailer L Brands currently sport a 4.7% dividend yield. That's been little consolation to investors, who have watched the stock drop nearly 50% since it peaked in late 2015. But for dividend investors looking for a high-yield stock today, L Brands is an interesting option. L Brands owns well-known brands such as Victoria's Secret and Bath & … [Read more...] about 3 Top Dividend Stocks With Yields Over 4%
When digging into dividend-paying stocks, investors often overlook the gold sector. Since gold mining is capital-intensive, mining companies are usually uninterested in returning cash to shareholders as they must continually reinvest in their businesses, ensuring they remain profitable amid volatile gold prices. But this doesn't mean that dividend-seeking investors should completely forsake companies dealing in the yellow stuff. Unlike miners, which are actually pulling the metal out of the ground, royalty and streaming companies such as Royal Gold (NASDAQ: RGLD) and Franco-Nevada (NYSE: FNV) are basically specialized financiers. Providing up-front payments to miners, they receive, in exchange, the right to purchase the mined metal at a preset price or to receive a percentage of mineral production. Although some gold mining companies represent decent opportunities, the better option for investors is a royalty and streaming company. But which one to choose? Image source: Getty … [Read more...] about Which Gold Company Is the Best Dividend Stock?
First of all, you're making the right move by getting back into stocks. Although retirees should have less exposure to equities than say, a 35-year-old, stocks are an important component of a well-rounded portfolio for investors of any age.This is especially true for dividend stocks, which can provide retirees with growing income streams, as well as capital appreciation to help keep up with inflation.So how do you find the right kind of dividend stocks for retirees?First, narrow your search to companies with dividend yields that are at least the market average – let's say 2% or higher. Anything lower and it's tough to call it an "income stock."Next, look for companies with well-established track records of dividend increase and no dividend cuts. This doesn't guarantee that they will keep following that pattern of behavior, but it makes it more likely. The S&P High Yield Dividend Aristocrats index, which contains more than 100 dividend stocks that have increased their payouts … [Read more...] about Ask a Fool: How can I find worry-free dividend stocks after retirement?
The tech sector didn't used to be a great place to look if you were on the hunt for high yield. That's changed as some companies have matured and shifted into periods of slower growth, and investors now have a range of tech dividend stocks to choose from. In addition to offering investors dependable returned income, some of these companies also have underappreciated business prospects and beaten-down valuations -- setting up dynamics that could pave the way for substantial capital appreciation on top of regular income generation. Here's why IBM (NYSE: IBM), AT&T (NYSE: T), and Seagate Technology (NASDAQ: STX) are top income-generating stocks in the tech sector. Image source: Getty Images. IBM With a 3.9% yield and a 22-year history of annual payout increases, IBM has one of the best returned-income profiles in the tech sector. The stock also looks pretty cheap trading at roughly 11 times forward earnings estimates and 13 times trailing free cash flow. Those are attractive … [Read more...] about 3 Top Tech Dividend Stocks to Buy Now
In the last few years, investors have found that some dividend stocks weren't as stable as they once seemed. Plunging energy prices forced once safe dividend stocks like Seadrill and Kinder Morgan to cut their dividends and Seadrill eventually went bankrupt. Even the once impenetrable General Electric had to slash its dividend in 2017. There are solid dividends available to investors and some have extremely high yields. Some of my favorites are yieldcos, or companies who own renewable energy assets that have contracted cash flows years, sometimes decades, into the future. Pattern Energy (NASDAQ: PEGI), Brookfield Renewable Partners (NYSE: BEP), and 8point3 Energy Partners (NASDAQ: CAFD) are from different parts of the renewable industry sector but they all have top dividends that investors shouldn't ignore. Image source: Getty Images. Pattern Energy Wind energy is one of the fastest growing energy sources in the U.S. and Pattern Energy owns wind turbines in the U.S., … [Read more...] about 3 Top Dividend Stocks for 2018