(OVRL, PWRM, BCRX, PFBX) Stocks to Watch by PennyOTCStock.com
Dividends from a quality, well-diversified portfolio are much more predictable than capital gains and best of all, they are passive. You don’t have to do anything, they just show up in your brokerage account each quarter. Inflation? Not to worry, the good companies routinely raise their dividends well in excess of the inflation rate.
It seems nowadays that every investing article ends with the same conclusion – you should be buying dividend stocks. They are all quoting studies citing the performance edge that dividends have enjoyed over the long-term and the value of a semi-fixed return generated from periodic dividend payments. However, you should beware of some of the information provided.
12 Stocks Sending A Strong Message With Higher Dividends
One of the many reasons I like dividend stocks is because they provide continuous feedback. As time passes, dividend investors see their income grow steadily. You don’t have to wait five to ten years to determine if the strategy is working. Each dividend and dividend increase provides reassurance that the strategy is working.
A pessimist might say life is a series of bad things happening, then we die. I certainty wouldn’t go that far, but life often deals us unfortunate circumstances to work through at what seems to be the most inopportune time. During this most recent economic downturn, many people lost their jobs at a time when companies weren’t hiring.
5 Companies Willing and Capable To Raise Dividends
The main focus of dividend investing is finding and buying stocks that will continue to raise their dividends in the future. In making this determination there are many factors to consider such as dividend payout ratio, debt levels, the company’s dividend policy and track record.
Exchange traded funds (ETFs) and closed-end funds (CEFs) are composed of many different individual securities. This usually results in uneven dividend distributions. Some funds have tried to address this with a managed distribution policy. In short, a managed distribution policy is management’s commitment to make a fixed periodic dividend payment.