Dividend stocks can be powerful investments. They've outperformed non-payers by more than two to one over the last 50 years, according to data from Ne d Davis Research and Hartford Funds.
Dividend stocks just suffered a dip. We view this as a Christmas gift. I explain why and highlight 2 of our Top Picks to buy today.
"What gets measured gets managed" is a saying that we can apply to income investing. The only thing that could catch income investors off-guard from meeting their objectives is an unexpected dividend cut. In this article, I share two picks, which not only offer truly durable income streams, but also a high chance for realizing a sizeable upside from capital gains.
It takes money to make money. However, it doesn't require a lot of cash to get started generating passive income.
Several pockets of the stock market have sold off in recent weeks, including the energy and utility sectors and consumer-facing companies. When a top stock sells off, but the long-term investment thesis remains unchanged, it can make the opportunity even more enticing.
The dividend yield on the average stock has fallen over the past year due to the surge in the stock market. For example, the S&P 500's dividend yield has declined from 1.6% a year ago to around 1.2% these days, which is near its lowest level in over 20 years.
The green energy sector is experiencing rapid expansion, driven by escalating global concerns about climate change, supportive government policies, and continuous technological innovation. This growth presents considerable investment opportunities but also significant challenges.
If there's one theme in the energy sector that has gotten plenty of attention over the years, it is the global transition from dirty carbon fuels to cleaner alternatives. It is a very real phenomenon, though it is happening much more slowly than clean energy proponents would like.
The world will need a tremendous amount of electricity over the coming years. From the electrification of the transportation sector to the emergence of artificial intelligence (AI), power demand is on track to grow exponentially in the next decade.
Dividend yields have been falling over the past year because of the nearly unabated rally in the stock market. The S&P 500 's dividend yield is down to about 1.2%, near its lowest level in about 20 years.
Energy stocks are having a solid year. The average one in the S&P 500 was up 14% heading into the year's final month.
The utility sector rallied strongly in 2024, with the average utility stock yield falling from around 3.6% to the current rate of around 2.8%. While that's still better than the 1.2% you would collect from the S&P 500 index, you can do much better.