Are dividend paying stocks still a good investment? The last few years of low interest rates have made dividend paying stocks especially attractive to investors who typically would have invested in mutual funds or bonds, which historically have a higher return than even the best dividend stocks. When interest rates are high, government bonds and other relatively safe securities can provide fairly comfortable income. When interest rates are low, however, the income dividend paying stocks provide is much more attractive to those investors. Now that the U.S. economy is getting stronger and interest rates are beginning to rise, many investors are looking to the higher rates they can get on government stocks and bonds. But if you’re overlooking dividend paying stocks, you could be throwing away a potentially huge pool of money.
The Real Power of Dividend Stocks
Unlike government bonds, which essentially have a fixed rate of return, dividend paying stocks can rise in value and in yield. The dividend rate on your dividend shares can increase year upon year and continue to grow throughout the time you own it. When you start out with high dividend paying stocks, and their dividend rate increases year after year, your income grows steadily.
Choosing the Best Dividend Stocks
Choosing the best dividend stocks can be a tricky process. A stock that looks like a high payer may be paying out a one-time dividend that isn’t likely to be repeated for years. One that seems to have a low dividend rate may be a steady earner that rises year after year after year. In either case, the dividend rate and dividend yield can be deceptive. That’s why you need a guide to help you choose the highest dividend paying stocks for your portfolio.
Recommended Dividend Paying Stocks
Our experts study the company history and dividend payment history of the high dividend paying stocks and make recommendations for the best dividend paying stocks. Our research will help you choose the best dividend stocks based on a combination of dividend rate, payment history and payout ratio. If you’re ready to commit to a wealth-growing strategy based on a well-stocked portfolio of high dividend paying stocks, we’re here to help.
Learn what you need to know to make the best choices in dividend paying stocks. Learn when to buy, how to take advantage of the lower tax on dividends and how to pick the best dividend paying stocks to build your retirement nest egg.