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.
The Explorer portfolio had another good week despite a sharp pullback by ElectraMeccanica (SOLO). We still have a big profit there, so I advise you to sell half your position and let the rest ride. As you review your stock portfolios going into 2021, I you...
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The Big Idea
For the last nine months the world has been mostly focused on the Covid-19 pandemic and the related importance of testing, treatments and, hopefully, an effective cure in the form of vaccinations.
But while the pandemic has taken center stage in 2020 remains...
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Twenty-eight companies just formed the Zero Emission Transportation Association (ZETA). What is it, and should you invest in any of them?
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November was quite a month in the market. It was one of the very best months for the market indexes in decades. The Dow was up 11.8%, the S&P 500 rose 10% and the Nasdaq gained another 11% in the month.
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The final tally is in, and it was a November for the ages. The Dow Jones Industrial average was up 11.8% for November, making it the best month for the index since 1987. The S&P 500 climbed 10% while the Nasdaq gained another for...
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Sometime between today and Friday, the U.S. House of Representatives will vote on the Marijuana Opportunity, Reinvestment and Expungement Act, otherwise known as the MORE Act.
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Despite a raging global pandemic and uncertain economy, stocks are at all-time highs. If that makes you skittish, try these 3 dividend kings.
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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...
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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...
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Investor sentiment is high these days. Just look at the Citi Panic/Euphoria Index
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Stocks have surged this past month, with the S&P 500 returning 11% in November. Other major indices, including the Dow Jones Industrial Average and the Nasdaq Composite, produced similarly strong returns. These kinds of returns would make a good year in most investors’ eyes.
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Are high dividend stocks a good investment? Yes... and no. Here's what you should know before you jump in.
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This note is a Monday edition, following the long Thanksgiving weekend last week. No companies reported earnings last week, and we review Adient’s (ADNT) earnings that were reported today.
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For the third straight week the market has rallied on the news of another coronavirus vaccine with positive late stage trial results.
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The Future is Full of Surprises
One of the oft-told tales of the California Gold Rush is that while most miners failed to strike it rich, the real money-makers were the people selling shovels—and of course that immigrant from Bavaria, Levi Strauss, who sold denim...
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For most of the calendar year, investors focus on buying and selling stocks based on where they believe the best returns are. However, as year-end approaches, other factors come into play that can create selling pressure unrelated to a stock’s outlook.
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Other than price changes not much has happened with our stocks since I wrote last week. With our offices closed tomorrow and Friday we’ll all be taking a short break before gearing up for the last month of the year.
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Remain optimistic but pick your stocks carefully. The overall market is in good shape, and there’s definitely more good than bad among individual stocks, though it’s also tricky, with plenty of rotation and news-driven moves.
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Stocks showing strength and breadth like we haven’t seen in a long time, particularly with the broad market at a record high. Despite flattish returns from the formerly high-flying mega-cap tech stocks, the broad stock market is no longer grinding higher, it is higher,...
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Given the news that we are likely to have several effective vaccines approved over the next couple of months, value stocks, which tend to be more cyclical and thus will benefit more sharply from an improving economy, have outperformed growth stocks.
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