The Dividend Aristocrats Index contains companies in the S&P 500 Index that have increased dividends every year for the last 25 straight years. Dividend Aristocrats are large cap, blue chip companies from many different industries.
This list covers over 225 real estate investment trusts (“REITs”). REITs typically provide high dividends and the potential for moderate capital appreciation. These companies are required to pay out at least 90% of their taxable income to shareholders in the form of dividends, making them a strong income-generating investment.
The Safe Dividend Stocks list contains the highest rated stocks for safety, making them more appropriate for investors concerned more with safe passive income and less with longer-term growth potential. These companies generally maintain low levels of debt, produce consistent free cash flow, generate moderate-to-high returns on equity, and have moderate-to-low payout ratios.
When a company declares a dividend, it sets a record date when you must be on the company’s books as a shareholder to receive the dividend payment. You must own a stock before its ex-dividend date to receive its upcoming dividend payment.
Have you ever wondered how a dividend stock performed during the last recession? Did sales collapse? Was the stock crushed? Now you can quickly discover how any dividend stock fared during 2008-09. Not surprisingly, many dividend aristocrats performed well.
A closed-end fund is a type of investment company managed by investment advisers registered with the SEC. Unlike open-end funds, new shares/units in a closed-end fund are not created by managers to meet demand from investors. Like conventional mutual funds, closed end funds do not pay income taxes on amounts distributed to investors. Instead, the taxes “pass through” to the shareholders. Closed-end funds generally trade at much higher dividend yields.
This list covers over 130 master limited partnerships (“MLPs”). For investors willing to deal with potential tax reporting complexity, lack of liquidity, and other risks, MLPs can offer higher yield potential.
High dividend yields aren’t everything. In many cases, you would be better served buying a lower yielding stock with better growth prospects and less fundamental risk. This list identifies stocks with high Growth Scores, above-average long-term sales and earnings growth, average-to-low debt, high dividend growth in recent years, and moderate-to-low payout ratios.
Stocks on this list have dividend yields in excess of 5% and plenty of potential to provide immediate high income. But, how can you know if the dividend payment is safe? Simply knowing the dividend yield and payout ratio is not enough. Fortunately, our proprietary Safety Score metric evaluates a company’s debt level, cash flow generation, sales growth, profitability trends, cyclicality and more to get a better sense of the yield’s safety. Increase your portfolio’s income level without taking irresponsible risk.
Do you ever wish you could have discovered and purchased shares of Coca-Cola when it traded for less than $1 in the early 1980s? Finding small cap companies with great long-term growth potential can provide decades of above-market returns. While the high potential small cap companies on this list pay a dividend, many payments are modest to allow the company to continue reinvesting to fuel future growth. If you have a long investment horizon and are looking to significantly grow your nest egg, this list could be for you.
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