(MoneyWatch) With interest rates at historically low levels, many investors have been lured by the siren song of dividend-paying stocks, especially those with high yields. We have addressed that issue in several blogs, demonstrating why this isn't a good strategy -- either as a substitute for safe fixed income, or as a way to achieve higher stock returns. Wesley Gray and Jack Vogel, authors of the 2012 paper "Dissecting Shareholder Yield," add to the research on this subject, examining different yield metrics. The authors begin by noting that the percentage of firms paying a dividend has declined from 63 percent in 1972 to 36 percent in 2011. They also cited the 2001 study, "Disappearing Dividends: Changing Firm Characteristics or Lower Propensity to Pay?", by economist Eugene Fama and finance professor Ken French that found that even after controlling for firm characteristics, firms have become less likely to pay dividends. One reason for the disappearing dividends is that firms have … [Read more...] about Can dividend yield predict returns?
Stocks dividend yield
The year 2018 started with a bang, but exuberance abruptly ended with the onset of February. After a two-year run with barely a hiccup, the stock market correction was a reminder for many that stocks can move in more directions than one.If that reminder has you rethinking where your money is invested, alcohol stocks might be a place to begin. Here are five that offer dividends that can help make up for the pain.Dividends will make it all betterCompanyAnnual Dividend YieldBusiness DescriptionAnheuser-Busch InBev (NYSE: BUD)3.7%The world's largest beer maker, famous in the U.S. for Budweiser.Constellation Brands (NYSE: STZ)0.9%A diversified beer, wine, and spirits company -- brands include Corona, Robert Mondavi, and Svedka.Molson Coors (NYSE: TAP)2.1%Another diversified global beer maker, best known for Coors, Miller, and Blue Moon in the U.S.Diageo (NYSE: DEO)2.6%Owner of iconic spirits like Johnnie Walker, Smirnoff, and Captain Morgan, as well as Guinness beer.Altria (NYSE: … [Read more...] about Drown Your Market Volatility Blues With These Alcohol Stock Dividends
The 30 companies in the Dow Jones Industrials (DJINDICES: ^DJI) are among the cream of the crop in blue chip stocks, and they all share one thing in common: They pay dividends. Yet even in this elite group, you can find a wide disparity across the spectrum in terms of how much these stocks pay their shareholders. A few pay between 4% and 5%, while some are a lot closer to the 1% level.The top-yielding Dow stocks all have dividends that are well above the average for the entire stock market. Yet there are some reasons for income investors to pause to consider them more closely before simply buying them. In some cases, high dividends reflect risks that you might not want to take on in your portfolio.The top 10 dividend yields in the DowHere are the 10 highest-yielding stocks in the Dow Jones Industrials, as of Feb. 27:StockDividend YieldVerizon Communications (NYSE: VZ)4.9%ExxonMobil (NYSE: XOM)4%Chevron (NYSE: CVX)4%IBM (NYSE: IBM)3.9%Pfizer3.7%Coca-Cola3.5%Merck3.5%Procter & … [Read more...] about The 10 Highest Dividend-Yielding Stocks in the Dow
As an income investor, you're probably allured by high-yield dividend stocks. There's nothing wrong with that, except that the stock picks would be better poised to make you money if those high yields are backed by steadily growing earnings and dividends. Trust me, there are several such gems hidden in the market today; some offer yields as high as 5% or more and are well-poised to continue doing so for years to come. Two such stocks that I'd urge you to look at are Brookfield Renewable Partners (NYSE: BEP) and Welltower Inc. (NYSE: HCN). Note that Welltower is about to change its stock ticker from HCN to WELL, effective Feb. 28. There's a strong reason for choosing these two stocks over others: Both have solid megatrends backing their growth potential, which means they're likely to offer sustainable high yields to shareholders for years to come. Here's why. Brookfield Renewable Partners: Dividend yield 6.1% The big switch to renewable energy across the globe is already under … [Read more...] about 2 Stocks to Buy With Dividends Yielding More Than 5%
It's no secret that investing in dividend-paying stocks is one of the best ways for everyday investors to create an income stream large enough to make their retirement dreams a reality. Merck & Co., Inc. (NYSE: MRK), Pfizer Inc. (NYSE: PFE), and AbbVie Inc. (NYSE: ABBV) all offer yields of 3.2% or higher right now. With the average stock in the benchmark S&P 500 index paying just 1.8%, these big pharma stocks are far too attractive to ignore. Of course, a juicy yield today won't help you accumulate much wealth if the payout doesn't grow. Let's look at what's driving profitability for these pharmaceutical giants to see if they can keep boosting payouts over the long run. Image source: Getty Images. 1. Merck & Co.: Feeling withdrawn This stock's fallen around 11% since the company withdrew its European application for Keytruda plus chemotherapy as a first-line treatment for metastatic non-small cell lung cancer late last year. As a result, the stock offers a fairly … [Read more...] about 3 Top Pharma Stocks With Dividend Yields Over 3%