Displaying items by tag: dividends

(New York)

The biggest dividend sectors, such as utilities and REITs, are getting hammered alongside the selloff in bonds. With treasury yields surging on Wednesday, utilities and REITs fell as much as bond prices. Dividend stocks had been experiencing a month of strong performance, but fears have been rising since the last Fed meeting, when the central bank took on a decidedly more hawkish tone.

FINSUM: We are concerned for dividend stocks right now because we think the big move higher in yields might have reset the market’s thresholds. Is the next stop 3.5% on the 10-year?

(New York)

Dividend stocks may have done well over the last month, but generally speaking, the last decade has been bleak. With the exception of a few months and quarters, dividend stocks have been largely out of favor with investors, who have instead devoted their capital to quick-growing growth stocks, especially in the tech sector. That said, the next year may be very good for good dividend payers, as yields are attractive and payouts are growing quickly. According to one portfolio manager in the space, “We are getting those yields and dividend growth—this is going to be a very good year for dividend growth—from the usual suspects”.

FINSUM: This seems like a risky bet to us. While dividend stocks have a place in the portfolio, the risk of rate rises to dividend sectors is considerable.

(New York)

US dividend stocks are in a curious, if tenuous, positon at the moment. They have done well recently, but rate rises seem poised to bring prices down. Overseas dividend stocks, however, are not in the same predicament, as the rate environment in many other parts of the world is more benign. Accordingly, here are six overseas dividend stocks to consider: Allianz (4.1%), Hang Lung Properties (5%), Heidelberg Cement (2.8%), Nestle (2.9%), Royal Dutch Shell (5.3%), and Sanofi (4.1%).

FINSUM: Not only are these stocks attractive because of the good yields and mild rate environment, but they mostly have very attractive P/E ratios as well.

(New York)

Many investors may be looking for the best possible combination of high dividend yield and stability. Many companies with very high yields are not stable, so there is often a tradeoff between the two. With that in mind, here are three dividend stocks whose payouts should be reliable for decades to come. The first is a smaller REIT called CareTrust (4.6% yield), which is focused on growing its real estate footprint to handle the US’ aging population. Nike (1%) is another option. The dividend yield is not high, but it is hard to think of a more reliable payer. Finally, there is Canadian space stock, Maxar, which is growing strongly and offers a great dividend yield (considering how small and young it is) of 3.3%.

FINSUM: This is a serious mix of options from three entirely different sectors. Definitely some interesting choices to look into.

(New York)

Retirees are looking for dividend stocks that can pay them steadily and over the long term. The higher the yield, the better, but generally one wants stable underlying companies that are not going to spend too high a percentage of cash. With those factors in mind, here are three names to consider: Verizon (4.3% yield), master limited partnership MPLX (6.85%), and mining giant Rio Tinto (~6%).

FINSUM: Verizon seems like a good bet to us, and we expect they might raise the dividend given that it is at an all time low relative to AT&T.