Published Fri, 11 Jan 2019 07:20:00 -0500 on Seeking Alpha
Co-produced with PendragonY for High Dividend Opportunities.
Dividend paying stocks have historically produced massively higher total returns than other non-dividend paying growth stocks:
This is one of the reasons why at High Dividend Opportunities, our focus is mainly on dividend-paying stocks with a preference for the two following market segments:
'Higher Dividend' refers to investment opportunities with exceptionally high dividend yields but slower growth. 'Dividend Growth' refers to investment opportunities with lower dividend yield but anticipated dividend hikes in the coming years. Both approaches have proven to produce strong total returns along with high income.
Today, as we move into 2019, we look for important investment themes, we compare valuations and seek to determine which segment is likely to produce the best results going forward.
Higher Dividend or Dividend Growth: How do they compare?
"Higher Dividend Stocks" and "Dividend Growth" stocks are similar in that they both generate a sizable portion of their total returns from dividend income. Total returns are the sum of:
Dividend income Price appreciation The return generated from dividend income is very easily computed with the dividend yield.
The appreciation potential is however less certain and comes from cash flow growth and multiple expansion.
In this sense, the main difference between both approaches is how returns are... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
Older articles featuring Ares Capital (ARCC):Gladstone Investment's Updated Dividend Sustainability Analysis (Impacts From Very Large Deemed Distribution)
Dividend Portfolio Review: New Dividend Record For May
Yield-Starved Investors Still Accumulating BDCs Paying More Than 10% Annually
2019 Four Month Update, 10% Yield; Includes POT5.6 Oversold Signals
10% Yielding New Mountain Finance Receives Fitch Rating
The Income Method: How 'High Dividend Opportunities' Succeeds
Assessing Main Street Capital's 2019 Dividend Sustainability (Includes Special Periodic Dividend Projection)
Safe And Sustainable 8.8% Yield From PennantPark Floating Rate Capital
Road To Financial Independence: New Dividend Record In March
78 Top Value Dogs For April By Yield, Upside, And Net Gains From Dividend Dogcatcher