Knowing more about high-yielding dividend stocks

Knowing more about high-yielding dividend stocks

Clare Hubbard

Investing in high-yielding dividend stocks of Microsoft, ExxonMobil, AT&T, Verizon, Apple, Texas Instruments or Shell Oil, is a safe bet as these are less risky. If you are looking to sell your low yield stocks and investing purely in the ones that provide increased dividends regularly then there are a number of industry sectors you can look into. Some of these are stocks of companies in various industry sectors such as services, healthcare, consumer goods, financial, utilities, industrial goods, telecom and so on. You can also invest in Master Limited Partnerships like the energy sector with oil and gas companies, Real Estate Investment Trusts like apartments, hotels, offices, storage, and others who lease out their properties to tenants, to name a few.

Dividend growth investing is an investment strategy that does two things simultaneously – provides capital appreciation and a steady income. So, investing in businesses that are capable of increasing their dividends prove they are more stable and dependable, unlike others that perform well for short periods but are highly volatile. Increasing your income supply safely through high dividend stocks is a good option, especially appealing to investors who bank on these dividends in their retirement years. Ensure the companies you invest in have healthy and positive dividend safety scores.

Any stock with a dividend yield in excess of 4% is termed a high dividend stock. Mature companies that do not have the need to infuse more capital into their businesses prefer to share their surplus cash with shareholders in the form of high-paying dividends.

There are benefits and risks in all types of dividend stocks. Diversity is the key here. Do your research, observe markets movements, invest wisely and enjoy high yields from dividend stocks. It is possible. You can always compare the popular high-yielding dividend stocks that can give you better returns in the longer run.

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