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Dividend Investing |
TheStreet.com
4 hrs ago
Comment
PRESCOTT, AZ (TheStreet) -- As the quest for yield by investors continues, new ETF provider Arrow Funds is showing that it is willing to go anywhere, including Venezuela, to give investors what they want in the new Arrow Dow Jones Global Yield ETF...
Comments for SCOTT'S INVESTMENTS
May 7
Comment
In December 2010, I created a screen/hypothetical portfolio called the “High Yield Dividend Champion Portfolio.” The screen is tracked publicly as a continuous hypothetical portfolio with a starting balance of $100,000 on Scott’s...
Business Wire
May 1
Comment
Western Asset High Yield Defined Opportunity Fund Inc. (NYSE: HYI) announces its portfolio composition as of March 31, 2012. Investment Objective: The Fund’s primary investment objective is high income. Capital appreciation is a secondary
Business Wire
Apr 30
Comment
Neuberger Berman High Yield Strategies Fund Inc. (NYSEAmex: NHS) has announced a distribution declaration of $0.09 per share of common stock. The distribution announced today is payable on May 31, 2012, has a record date of May 15, 2012 and has an
Globe Newswire
Apr 25
Comment
NEW YORK, April 25, 2012 (GLOBE NEWSWIRE) -- Guggenheim Investments, the investment management division of Guggenheim Partners, LLC, today announced the launch of three new high yield corporate bond BulletShares exchange traded funds (ETFs):
Business Wire
Apr 20
Comment
Neuberger Berman High Yield Strategies Fund Inc. (NYSE Amex: NHS), (the “Fund”) has announced its next measurement period under its tender offer program (the “tender offer program”). Under the Fund’s tender offer program, if its common
Dividend Growth Investor
Apr 18
Comment
In my four years as a dividend blogger, I have written hundreds of articles on dividend investing and weekly dividend increases. One common question that I receive from readers relates to companies raising distributions for a long period of time,...
Wall Street Sector Selector
Apr 2
Comment
While high yield provides an attractive pickup in yield and I’m maintaining my neutral view of the sector
CNBC
Apr 2
Comment
Is sitting in cash a destruction of value over the long term? Jim Keenan, BlackRock, discusses the advantages of owning high yield corporate bonds versus cash.
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This article is a part of Wikinvest's Personal Finance section and Guide to Investing. Please contribute or edit to improve it. |
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Overview
Dividend investing focuses on selecting solid companies that pay a regular and growing dividend. Investing for dividends in the U.S. has been gaining in popularity since The Jobs and Growth Tax Relief Reconciliation Act of 2003 created qualified dividends, which are taxable at a 15% federal rate or 5% for taxpayers in the two lowest tax brackets. Many other countries, such as Canada, have preferencial income tax treatment for dividends earned.
As noted in the article Seven Important Reasons for Dividend Investing , stocks that pay dividends provide several advantages over those that do not, including:
- Dividends provides stability to your investment
- Dividends can't be manipulated or faked
- Dividends provide continuous feedback
- Reinvested dividends provided a significant portion of the historical equity returns
- Good dividend companies grow their dividends
- Spending dividends in retirement, does not harm your principle investment
- A dividend portfolio is relatively low maintenance
However, as with any investment, there are some cons as well. These include:
- Dividend payments are not consistent. They can change and should not be relied on as a guaranteed paycheck. If a company becomes less profitable, payments may decrease or be suspended altogether.
- Payments are still subjected to income tax.
- At the end of the day, dividend stocks may not yield as much profit to investors as common stock investors.
- When the yields rise in the market for other shares, stock prices may go down as companies compete for investors.
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