Dividend Strategists Rewind: Week of August 23, 2021
The latest dividend news, strategies and investing ideas.
As a dividend growth investor, I look for high-quality dividend growth stocks trading at reasonable valuations. Dividend safety is an important consideration, and I prefer to invest in stocks that have a good chance of delivering solid total returns (dividends plus price appreciation).
Utilities operate in a regulated environment and often as legal monopolies, so they have predictable and stable earnings. This allows some Utilities to pay generous dividends and to increase their dividend payouts over time. READ MORE
REITs are not only popular because they distribute generous dividends, but also because they are easy to understand. Investors can picture an apartment building or an office tower and see how tenants pay their rent monthly. They are willing to purchase units of those businesses in exchange for income and peace of mind.
The concept of being a landlord and having tenants is comparatively simple to understand. The company owns and manages Real Estate in exchange for receiving rental income from properties such as apartment complexes, hospitals, office buildings, timber land, warehouses, hotels, and shopping malls. READ MORE
Many investors look to income investing to generate passive income. This has become a popular wealth-building strategy. An investor will assemble a portfolio of dividend-paying stocks, bonds, and funds to generate cash without expending extra work or input on the investor's behalf. The passive income generated from these investments occurs while your time is spent earning other forms of income or enjoying quality time or retirement if you're lucky enough.
Warren Buffett once said, "if you don't find a way to make money while you sleep, you will work until you die." Income investing can become a powerful tool that builds wealth throughout your life and offsets the loss of income during retirement by taking the dividend disbursements as cash payouts. READ MORE
Caterpillar, Inc (CAT) is a Fortune 100 company based in the United States that designs, develops, engineers, manufactures, distributes, and sells machinery, engines, financial products, and insurance to clients through a global dealer network. It is the world's largest manufacturer of construction equipment.
One way to diversify your portfolio is to invest in different sectors. Some sectors perform better than others in different economic conditions, and sector diversification helps to mitigate portfolio risk.
In this article series, I present the top-ranked dividend growth stocks in each GICS sector. To rank stocks, I sort them in descending order by quality scores, as determined by DVK Quality Snapshots. When two stocks have the same quality score, I use tie-breaking metrics to rank one stock higher than the other. READ MORE
Oil & gas stocks will raise passions and attract many investors during bull markets. As the economy grows, demand for such products increase accordingly. Commodity prices go up, profits are skyrocketing, and dividends are generous. The problem is that it rarely stays that way.
The energy sector is the most cyclical of all. If you are courageous enough to ride the roller coaster, you can grab shares at highly depreciated prices every few years. If you would rather stay focused on a dividend growth investing strategy as we do here at DSR, you must be incredibly picky before investing a penny in this sector. READ MORE
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