When you invest in a stock, you buy a small portion of a company. The value of your stock rises and falls in conjunction with the performance of that company. But when you buy stocks that pay dividends, you get a little bonus. When these stocks earns a profit, it shares some of that profit with stockholders.
What do you need to do to get in on that action? Nothing. As long as you own the stock, you are eligible for monthly, quarterly, or yearly dividend payments. While dividends aren’t guaranteed, most companies are reluctant to cut them as that sends a troubling signal to investors. That makes investing in dividend stocks a low-risk, steady way to bring regular income into your portfolio.
When a company pays a dividend—and especially if it makes an effort to increase that payment every year—it shows that it cares about rewarding shareholders. These payments are also a savvy way to attract investors, which is why their share prices typically appreciate over time.
What do these stocks look like? They tend to be household names like Target Corp. (TGT), CVS Health Corp. (CVS), and Best Buy Co. (BBY). But you’ll also find a number of lesser known companies that have paid consistent dividends for years.
To find these stocks, search for investments with timelessness and longevity—companies that are sure to not only be around 20 or 30 years from now, but still thriving. Dividend stocks become more powerful, and usually make up a larger part of your annual return, the longer you hold on to them.
To learn more and find out how to invest in the best dividend stocks, download our FREE report, Cabot’s 5 Best Dividend Stocks. It’s your guide to finding the investments that will fund your future.
With rising yields, rate hikes and inflation potentially increasing at the fastest rate in decades, the market struggled to make any headway for the second straight week. The Dow fell 0.9%, the S&P 500 lost 0.3% and the tech-heavy Nasdaq pulled back 0.3%. the...
Read More
Reliable dividend stocks may seem obvious and boring. But if you buy them and hang on to them, they can make your future. Here are five that stand out now.
Read More
The chances of a recession in the foreseeable future seems exceptionally unlikely. The domestic economy is booming: following last year’s estimated 5.2% growth, the economy is estimated to grow at a 3.3% pace this year. Any further Omicron-related deceleration appears more likely to a..
Read More
As we get towards the end of January, the biggest thing on my mind is the pullback in growth stock. It has been remarkable. According to J.P. Morgan and Bloomberg, the software index is down ~22% from its peak.
Read More
The indexes plummeted on rising rate worries and disappointing Goldman Sachs (GS) earnings. The benchmark 10-year Treasury rate soared to 1.85 on Tuesday. That’s the highest level since the pandemic began and up from 1.34% as recently as last month.
Read More
With growth stocks still under pressure and more conservative stocks holding up better, it makes sense this week to lean toward a lower-risk dividend-payer with minimal downside risk.
Read More
Stock Recommendation Tracker
The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More
Stock Recommendation Tracker
The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More
Any income investor should know how to reinvest dividends. Whether you should depends on what you're looking for as an income investor.
Read More
Learn how to find the best retirement income streams with low-risk, uncomplicated investments that provide the opportunity to make returns over time.
Raise your hand if you don't like the idea of money rolling in as you bask in the glow of retirement. Really, wouldn't?...
Read More
Manufactured home communities are one of the fastest-growing niches in the housing industry. And these three housing REITs are capitalizing on the trend.
Read More
This week’s Friday Update includes our comments on earnings from Wells Fargo & Company (WFC). We had no price target or ratings changes this week, although we are reviewing Wells Fargo shares as they trade above our price target.
Read More
As we continue to balance the pursuit of opportunities with the desire to preserve capital/current gains we’re intently focused on stocks that are breaking down to new lows. Today we’ll take partial profits on another name and step completely away from one stock.
Read More
What are qualified dividends? It's important to know what makes a dividend qualified for tax purposes. Here's what you need to know.
Read More
People often overlook silver as a safe haven in volatile markets. But the best-performing silver stocks tend to rise faster than gold stocks.
Read More
Dividend reinvestment is one of income investors' most powerful weapons, and DRIP plans are the best way to do it. But DRIPs do have their drawbacks.
Read More
Identifying the best IRA investments is less a matter of asset performance and more a matter of asset type and tax considerations.
Investors searching for the best IRA investments will typically approach those investments in the same way that they’d approach investments in their brokerage...
Read More
Well, 2021 is in the books, which we’re happy is the case, as it was far from a fruitful growth stock year—effectively payback for the amazing 2020 environment.
Read More
Both Sprout Social (SPT) and Kornit Digital (KRNT) have made fresh lows today so we’re going to take partial profits by selling one quarter of each position.
Read More
It continues to be a very bumpy ride for small-cap growth stocks, while those names with a slightly more value-oriented profile are providing a somewhat smoother ride. Big picture, there is no doubt the risk-off environment continues. The good news for more aggressive is...
Read More
