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  • Tips for Rebalancing Your Dividend Portfolio Once a Year

    Tips for Rebalancing Your Dividend Portfolio Once a Year

    Keep your income flowing and your risk level under control

    Quick Summary: Why do we need to Rebalance Annually?

    • Maintain the target risk and income balance in your portfolio
    • Decrease excess exposure to a bad-performing sector
    • Recognize early dividend cuts, fundamentals, or shortages in demand
    • Provide the chance to reinvest in higher-quality income sources
    • Maintain your long-term plan on the right track

    Introduction: Why You Should Consider Annual Rebalancing

    If you’re a passive investor with a longer-term dividend or ETF portfolio, you may be saying to yourself, Do I really need to rebalance once a year? The beauty of dividend investing is “set it and forget it.”

    If we’re honest, rebalancing your portfolio once a year isn’t busywork; it’s maintenance. Much like tuning up your car, we want to make sure our portfolio keeps generating income at a reliable level and hasn’t drifted beyond your agreed-upon risk tolerance.

    Markets consistently change over time. They may change in ways you may not even notice—nobody can follow every company or ETF all the time, especially if you’re an investor with a long-term outlook. Over time, you may find sectors are overperforming while others are lagging; some companies will cut dividends, and others will surprise you with growth.

    If you don’t notice these changes in your portfolio, you can end up with more than you bargained for: an unbalanced portfolio that could negatively impact your income through loss or increased risk.

    The Importance of Rebalancing Your Dividend Portfolio

    Although it’s the least active part of your investment management, even these types of portfolios require some degree of management.

    Over time:

    • You will likely have sectors (like REITs or energy) that overperform relative to others and create excessive reliance on one area of the market.
    • Individual companies will cut dividends or will not maintain their financial strength.
    • Your goals or income requirements may have changed/new goals may have developed, and you may need to adjust your portfolio accordingly.

    Annual rebalancing ensures your portfolio:

    • Isn’t overloaded with one stock or sector
    • Maintains a sustainable and optimized dividend yield
    • Reflects your evolving income needs and risk profile

    Illustrative Scenario: How Annual Rebalancing Might Shield You in a Market Downturn

    Introducing Adams, a passive dividend investor who constructed a portfolio of REITs, telecom stocks, and financial stocks. He hadn’t changed it in three years. In early 2020, when the COVID pandemic hit, many of his REIT holdings dropped more than 40% in value, and because he hadn’t rebalanced, REITs made up literally almost 50% of the value of his portfolio. If he had rebalanced in 2019, he might have reduced REIT exposure, added some more robust sectors, and avoided a significant income reduction.

    He was made to sell at a loss, which also reduced his dividends.

    Lesson: An annual review of your portfolio can make the difference between a steady portfolio and a painful loss.

    When is the perfect time to Rebalance?

    There are two optimal times to rebalance:

    1. Annually—Once a year is sufficient for most income-focused investors. Choose a fixed month (like January) and stick to it.
    2. After Major Events—Rebalance if there’s a big dividend cut, a merger, or a significant change in market conditions.

    Set a calendar reminder at year-end or after tax season—whenever you’re most likely to stay consistent.

    Step-by-Step: How to Rebalance Your Dividend Portfolio

    1. Review Your Current Allocation

    Break down your holdings by:

    • Sector weightings (e.g., REITs, utilities, energy)
    • Dividend yield ranges
    • Weight per holding
    • Individual stocks vs. ETFs

    💡 Use the Stocks Telegraph Screener to quickly analyze:

    • Current dividend yield
    • Payout ratios
    • Dividend growth history
    • Financial health metrics
    1. Reassess Your Target Mix

    Ask yourself:

    • Do I want more ETFs or more individual stocks this year?
    • Should I reduce exposure to cyclical sectors like energy?
    • Has my risk tolerance changed due to life events or income needs?

    Update your ideal allocation to reflect your latest goals.

    1. Identify the Overperformers and Underperformers

    Target stocks that

    • Have grown disproportionately large in your portfolio
    • Are no longer paying a consistent or rising dividend
    • Are too volatile or don’t match your current risk tolerance

    Trimming winners is hard but necessary to avoid overconcentration.

    1. Eliminate Weak Links

    Replace weak links using the Stocks Telegraph Screener:

    • Focus on companies with a < 70% payout ratio, strong earnings, and a stable dividend history.
    • Screen for diversification within the sector.
    • Look for undervalued dividend gems or ETFs with high long-term returns.
    1. Re-allocate and Re-invest
    • Re–allocate and Re–invest Reinvest the money into income-producing, upside investment options.
    • Consider utilizing a DRIP (Dividend Reinvestment Plan) for compounding future income without having to think about it.
    • Be aware of tax implications of selling appreciated stock.

    Comparison Table: Best Dividend ETFs for Rebalancing

    ETF Name Dividend Yield Expense Ratio Sector Exposure Rebalancing Ease
    Vanguard High Dividend Yield (VYM) 3.1% 0.06% Broad Large-Cap Very Easy
    Schwab U.S. Dividend Equity (SCHD) 3.3% 0.06% Quality Dividend Stocks Very Easy
    SPDR S&P Dividend ETF (SDY) 2.9% 0.35% Dividend Aristocrats Moderate
    iShares Core High Dividend (HDV) 3.5% 0.08% Defensive Sectors Easy

     

    Advice for Smart Dividend Rebalancing

    • Don’t chase the yield. A 6%-8% yield may look good, but typically, there is a risk/reward.
    • Do not exceed payout ratios of 80% for sustainability.
    • Have diversity in your dividend sources: REITs, dividend growth stocks, and ETFs.
    • Remember total return (dividends + capital appreciation).
    • Be disciplined: rebalancing is about the goals and not your fear or the market excitement.

    Tools to Assist: The Stocks Telegraph Screener

    • Rebalancing doesn’t have to be manual and does not have to be painful. For example, the Stocks Telegraph Screener can:
    • Search for stocks based on metrics like dividend yield, sector, payout ratio, or growth.
    • Monitor dividend safety and the company’s financial health.
    • Build a custom watchlist to be used next year when rebalancing.
    • Identify dividend opportunities to invest in before others see value.
    • Whether you are replacing lackluster performers or assessing your current mix, it could save you hours and build your confidence.

    Final Thoughts: Set It and Reset It

    Rebalancing a dividend portfolio on an annual basis is one of the easiest methods for securing your passive income stream.

    Invest just a few hours each year to:

    • Protect your income.
    • Protect yourself from unnecessary risk.
    • Keep your portfolio aligned with your risk tolerance

    With available tools such as the Stocks Telegraph Screener, rebalancing becomes not an inconvenience but a strategic advantage.

    FAQs

    1. Why should I rebalance my dividend portfolio on a yearly basis?

    To have an aligned risk profile, a good income, and to keep your portfolio aligned with your financial goals.

    1. What should I be looking for as I rebalance?

    Dividend sustainability (payout ratio), stock price performance, sector weightings, and any stocks that do not meet your qualifying criteria for investment anymore.

    1. What is the easiest way for me to rebalance my portfolio?

    I suggest utilizing the Stocks Telegraph Screener—it would be a quick way to see overperformers, weak links, and great dividend prospects.

  • Growth vs. Dividend Stocks for Beginners: Which Is Better?

    Growth vs. Dividend Stocks for Beginners: Which Is Better?

    When you take your first steps into stock market investing, one of the first large questions you will face is, Should I invest in growth stocks or dividend stocks? Although it seems like a simple question, this question can determine a whole investment strategy—and, more importantly, your financial future.

    Both growth investing and dividend investing are proven strategies, and both include unique pros and cons and intended use cases. If you are just starting as an investor, understanding the differences is crucial to developing an asset allocation that aligns with your particular circumstances: your goals, risk tolerances, and time horizon.

    In this article, we will explain what growth stocks and dividend stocks are, how growth stocks and dividend stocks go in terms of their pros and cons, and most importantly, we will provide guidance on how to make a decision as a new investor. We will also show you a very powerful tool called the Stocks Telegraph Screener that uses real financial data to help you screen and compare potential investment opportunities.

    Growth Stocks: High-Reward, High-Risk Investments

    Growth stocks are shares of companies that trade at high valuations and are expected to outpace the market in terms of earnings growth. Growth companies will typically reinvest (or plow back) almost all (or all) of their profits back into the business through innovation, hiring, expansion (and other forms of growth), and/or research & development (R&D) — as opposed to distributing their profits as dividends.

    Examples include many well-known technology companies like Amazon, Tesla, and Alphabet (Google’s parent company). These firms typically operate in rapidly expanding industries and are favored by investors who seek capital appreciation — or price gains — over time.

    Growth stocks are stocks that belong to companies forecasted to have an above-average change within the market. Growth stocks do tend to have larger earnings growth rates than their peers.

    They also generally have no or very low dividend payments. These stocks typically have a higher price-to-earnings (P/E) ratio; however, they tend to have higher volatility and the prospect of more upside potential, making them a good fit for a more aggressive investor. The value lies in what the company will grow into.

    Key features of growth stocks:

    • High earnings growth
    • No or low dividends
    • Typically high P/E ratio
    • Higher volatility and more upside potential to be gained
    • Future value is a priority for them.

    Dividend Stocks: Steady Income, Lower Risk

    Dividend stocks are given by more mature companies; their businesses are typically operating with predictable cash flows. These companies offer dividend payments to shareholders, often every quarter, as a fixed payment from free cash flow.

    Dividend stocks are popular in certain investor communities, especially for steady income, retirees, and anyone needing cash flow above capital appreciation etc.

    Dividend stocks are usually in the utility sectors (electricity, gas, water), healthcare, telecommunications, and consumer staples.

    Key features of dividend stocks:

    • Regular income from dividends
    • Less volatility
    • Typically less risky companies: blue-chip companies
    • Not much upside potential
    • Moderate growth expectation
    • Some offer Dividend Reinvestment Plans (DRIPs)

    Growth vs. Dividend: A Side-by-Side Comparison

    Feature Growth Stocks Dividend Stocks
    Goal Capital appreciation Income + stability
    Payouts Rare or none Regular dividends
    Volatility High Moderate to low
    Investor Profile Younger, long-term investors Income-seeking or conservative investors
    Risk Higher Lower
    Total Return Strategy Price gains Dividends + modest growth

    What Is Better for New Investors?

    There is no correct or incorrect answer—only you can decide, depending on your specific goals and risk tolerance. But here’s how to assess it as a new-level investor:

    Choose Growth Stocks If:

    • You are investing with horizons for long-term goals (10+ years).
    • You do not rely on current income.
    • You are comfortable with market volatility.
    • You prefer to aggressively build your portfolio

    Choose Dividend Stocks If:

    • You want stable income.
    • You want more stability in your portfolio.
    • You are risk-averse or approaching retirement.
    • You want to reinvest dividends for compounding.

    Or, choose a blend—a blended portfolio.

    Many experienced investors adopt a hybrid approach and hold both growth and dividend stocks. Along with the benefits of long-term price appreciation, growth assets, you will also receive income from your dividends that can be reinvested or used to mitigate overall volatility.

    So, What Does the Data Say?

    SmartAsset’s history shows that dividend stocks have provided lower total returns than growth stocks on a historical basis, but with lower risk and more consistency; and while growth stocks tend to outperform in bullish or expanding market conditions, they also underperform in recessions and down markets.

    This is not an indictment of growth stocks—they have been significant drivers of some of the biggest market expansions; it merely highlights that dividends matter a lot more in unpredictable markets.

    How to Identify Quality Dividend and Growth Stocks

    Regardless of how you feel about dividends versus growth, stock selection is the most important variable, and this is where a great research platform (like the Stocks Telegraph Screener) can play a key role.

    The Screener will allow you to filter stocks on the following criteria:

    • Dividend Yield and Payout Ratio (for dividend investors)
    • Earnings Growth, Revenue Trends, and Valuation Multiples (for growth investors)
    • Sector, Market Cap, Volatility, etc.

    Instead of relying on gut feeling or trending social media tips, you can build a watchlist of stocks that are matched directly to your search criteria, whether you are looking for stable dividend payers or explosive growth candidates.

    Benefits of each Strategy

    Benefits of Growth Investing:

    • Great potential for high returns, especially in the long term
    • Ability to earn compounding gains as the company grows
    • Long investment time frames are appropriate.
    • Often fits with bull markets and strong economies.

    Benefits of Dividend Investing:

    • Consistent and predictable income
    • Lowest drawdowns while stocks and other investments drop rapidly in bear markets
    • Sources of income can be reinvested and used to boost total return.
    • It is often an indication of capital strength and financial discipline.

    Risks and Concerns

    Every strategy has trade-offs. Growth investing is often exciting but also stressful—fast, high returns are often accompanied by fast, steep drops. Dividend investing is more balanced and steady — this can often feel slow and limited, depending on big, high-growth stocks.

    The biggest risk? Not knowing your risk tolerance. As a beginner, you want consistency, not excitement, and once you figure out what type of investor you are, it will be easy to stray or not stray too far one way or the other.

    Beginner’s Tips: Decide the Right Way

    1. Think about your goals—are you working for retirement or looking to create monthly income?
    2. Plan your time—short-term investors may be more inclined to do dividends, while longer-term investors can handle the volatility of growth stock declines.
    3. Invest smaller amounts to start—use ETFs or invest smaller amounts in a combination of blue-chip dividend and growth companies to minimize risk.
    4. Reinvest dividends—You can greatly increase your long-term performance with compounding.
    5. Revisit your plan and make adjustments—what has worked well for you today may change tomorrow.

    Conclusion: Growth or Dividends or Both?

    There is no right or wrong answer—only what is right for you. Growth stocks can be exciting; there is huge potential. Dividend stocks can offer stability and regular income. As a beginner, you don’t have to choose one over the other and can do some of both.

    The good news is you can research and explore the world of growth and dividend investing using many tools like the Stocks Telegraph Screener to compare growth and dividend stocks, see fundamental analyses, and build a watchlist to meet your needs. Through research, time, and your experimentation, you can build a portfolio that incorporates both growth and dividend-like strategies.

    FAQs

    1. What is the difference between Growth Stocks and Dividend Stocks?

    Growth Stocks typically retain their earnings to expand at a fast rate and therefore provide only capital appreciation to their investors. Dividend Stocks take their earnings and share their profits and investor payments, so they provide income stability.

    2. Are Dividend Stocks safer than Growth Stocks for beginners?

    Dividend stocks are typically known for being more stable, especially those that have a consistent payout history. However, Growth stocks could return a far greater return if you are willing to take on somewhat more risk.

    3. As a beginner investor, can I own Growth and Dividend stocks?

    Absolutely! A blended strategy can offer you the growth of the stock market with new income from income-producing investments in the stock market that can ultimately help meet your current income needs while allowing you to build on that wealth generically long-term. Many beginners choose to diversify with a combination of both.

  • How to Build a Monthly Dividend Income Stream from Scratch

    How to Build a Monthly Dividend Income Stream from Scratch

    The goal of receiving a consistent monthly income from dividends is both alluring and attainable for a large number of income-focused investors. Monthly dividend income offers more frequent cash flow than quarterly or annual payouts, making it perfect for retirees, those seeking a side source of income, or anyone wishing to even out their budget and investment returns.

    The good news? To begin, you don’t have to be a millionaire. You can start creating your own monthly dividend stream from scratch with the correct resources, such as the Stocks Telegraph Screener, consistent effort, and careful planning.

    Let’s go over how to do it in detail.

    What Is Monthly Dividend Income?

    Investing in stocks, exchange-traded funds (ETFs), or real estate investment trusts (REITs) that distribute dividends every month is known as a monthly dividend income. Monthly payers provide more frequent distributions rather than waiting every quarter, as most companies do. This can help you pay for living expenses, reinvest sooner, or accumulate wealth more steadily.

    Why Monthly Dividend Income?

    Here are some key advantages:

    • Consistent cash flow: Aligns well with monthly expenses like rent, bills, or groceries.
    • Faster compounding: More frequent dividends allow for more rapid reinvestment.
    • Increased flexibility: Ideal for those transitioning into retirement or living off investments.

    How to Start Building a Monthly Dividend Income Stream

    1. Set Your Income Goal

    Before you invest, figure out your target:

    • Want $100/month in dividends? You’ll need $1,200/year in dividend income.
    • At an average 5% yield, that requires about $24,000 invested.

    The formula is:

    Investment Needed = (Monthly Income Goal × 12) ÷ Dividend Yield

    Adjust this based on your financial capacity and timeframe.

    2. Look for Monthly Dividend Stocks and REITs

    Some companies and funds pay dividends monthly. Here are popular options to consider:

    🏢 Realty Income (O)

    • Known as “The Monthly Dividend Company”
    • Dividend yield: ~5%
    • REIT with a portfolio of recession-resistant tenants

    💼 STAG Industrial (STAG)

    • Focuses on single-tenant industrial real estate
    • Monthly dividends with strong occupancy and contracts

    💰 Main Street Capital (MAIN)

    • Business development company (BDC) that pays monthly
    • Offers dividend stability and periodic special dividends

    📊 Global X SuperDividend ETF (SDIV)

    • ETF that holds high-yielding global companies
    • Diversified monthly income option

    3. Use the Stocks Telegraph Screener to Build Your List

    The Stocks Telegraph Screener helps you quickly identify:

    • Stocks or REITs that pay monthly dividends
    • Yields above your target (e.g., 4%+)
    • Stocks with strong payout ratios and dividend consistency

    You can sort by sector, market cap, dividend history, and more — all in one place.

    This eliminates guesswork and keeps your selection focused on high-quality, income-generating assets.

    4. Diversify Across Sectors

    Don’t put all your dividend eggs in one basket. Include:

    • REITs (real estate)
    • BDCs (financial)
    • Utilities
    • Telecoms
    • Consumer staples

    This reduces risk and keeps income stable, even if one sector underperforms or cuts payouts.

    5. Reinvest for Faster Growth (Optional)

    In the early stages, use a DRIP (Dividend Reinvestment Plan) to automatically reinvest monthly payouts back into your holdings. This can:

    • Accelerate portfolio growth
    • Boost your yield-on-cost over time
    • Increase your monthly income potential without adding new capital

    6. Track and Adjust Your Portfolio

    As you build:

    • Monitor dividend announcements and earnings reports
    • Be cautious of high yields above 8–10% (could signal risk)
    • Rebalance if one stock becomes too dominant or shows red flags

    You can also use the Stocks Telegraph Screener regularly to find replacements or add new monthly dividend opportunities as your capital grows.

    Example: How to Reach $500/Month in Dividends

    Let’s say you target an average dividend yield of 5%:

    • Annual goal: $500 × 12 = $6,000
    • Investment needed: $6,000 ÷ 0.05 = $120,000

    You could build this over time by:

    • Contributing $1,000/month for 10 years
    • Reinvesting all dividends along the way
    • Increasing your yield by selecting a blend of monthly and quarterly payers

    Common Pitfalls to Avoid

    • Chasing ultra-high yields (above 10%) without analyzing payout safety
    • Ignoring diversification — don’t buy 5 REITs and call it a day
    • Failing to reinvest or rebalance
    • Not using tools like the Stocks Telegraph Screener to evaluate fundamentals

    Monthly Dividend Investing vs. Quarterly

    Feature Monthly Payers Quarterly Payers
    Frequency 12 times/year 4 times/year
    Cash Flow Consistency Higher Lower
    Compounding Speed Faster Slower
    Selection Limited Wide variety

    For maximum flexibility, many investors blend both monthly and quarterly dividend stocks for smoother overall income.

    Final Thoughts: Your Monthly Income Starts Now

    Building a monthly dividend income stream is a practical and rewarding strategy, especially if you’re focused on long-term financial independence or retirement income.

    Start small, stay consistent, and reinvest as often as possible. By using reliable screening tools like the Stocks Telegraph Screener, you can identify quality income stocks, stay informed, and make smart portfolio decisions along the way.

    Monthly cash flow from dividends isn’t a dream — it’s a plan. And you can start today.

    Frequently Asked Questions (FAQ)

    1. What is the minimum amount required to receive $100 in dividends per month?

    With an average yield of 5%, you would need to invest about $24,000 in order to receive $100 in dividends per month ($1,200 annually). The formula is

    Investment Needed = Annual Income Goal ÷ Dividend Yield

    2. Are monthly dividend stocks safe?

    • Some are, but not all high-yield stocks are reliable. Focus on companies with:
    • Sustainable payout ratios (ideally below 70%)
    • Strong earnings and cash flow
    • Long histories of paying or increasing dividends

    Always verify using tools like the Stocks Telegraph Screener to filter by yield, debt, and dividend safety metrics.

    3. Should I reinvest my dividends or take cash?

    It depends on your goals:

    • Reinvesting helps grow your portfolio and increases your income over time.
    • Taking cash payouts provides a spendable monthly income.
    • Many investors reinvest in the early years and switch to cash withdrawals later in retirement.
  • How to Evaluate Your First Dividend Stock: A Step-by-Step Guide

    How to Evaluate Your First Dividend Stock: A Step-by-Step Guide

    Investing in dividend stocks has long been considered one of the most reliable ways to generate passive income while steadily growing your wealth over time. For many beginners, however, diving into the world of dividend investing can feel overwhelming. With so many companies to choose from and numerous financial metrics to consider, it’s not always clear where to start or how to make smart decisions.

    But here’s the good news: with the right approach and the right tools, evaluating your first dividend stock doesn’t have to be complicated.

    In this guide, we’ll walk you through a step-by-step process to help you confidently assess a dividend-paying stock. We’ll draw insights and show you how to use intuitive tools like the Stocks Telegraph Screener to make informed, data-driven investment choices. Whether your goal is to earn regular income, grow your portfolio, or both, this guide is designed to equip you with the foundational knowledge every dividend investor needs.

    Step 1: What Exactly Is a Dividend Stock?

    If you’re new to investing, the term “dividend stock” might sound a bit technical, but it’s actually pretty simple. When you buy a dividend stock, you’re investing in a company that not only shares a piece of its success with you, but does so regularly, in the form of cash payments called dividends. Think of it as a thank-you from the company for being a shareholder.

    These dividend payments usually come every quarter and are based on how many shares you own. So, if a company pays out $0.50 per share every three months and you own 100 shares, you’d receive $50 each quarter, just for holding on to your investment.

    But why do some companies pay dividends in the first place?

    Well, dividend-paying companies are often mature, financially stable businesses that generate more cash than they need for daily operations. Instead of putting all that money back into expansion or new projects, they choose to reward their shareholders with a slice of the profits.

    Here are a few common traits you’ll often find in dividend-paying companies:

    • They have steady, predictable earnings.
    • Their debt is under control.
    • They’ve built a solid track record of paying — and often increasing — dividends over the years.

    Why do investors love dividend stocks?

    Dividend stocks are especially popular with people who want to earn income from their investments. Retirees, for example, often rely on dividends for regular cash flow. But there are other perks, too.

    These stocks tend to be less volatile than high-flying growth stocks, offering a smoother ride during market ups and downs. Plus, if you reinvest those dividends instead of cashing them out, your portfolio can compound over time — growing faster and more efficiently, thanks to what’s known as a Dividend Reinvestment Plan (or DRIP).

    Step 2: Know What You Want from Your Investment

    Before you jump into buying your first dividend stock, it’s important to take a step back and ask yourself a few key questions.

    • Why are you investing in the first place?
    • What do you hope to achieve?

    Understanding your personal goals will help guide your decisions and ensure you’re picking stocks that align with your financial future.

    Let’s break down a few essential questions to think about:

    Are you looking for regular income?

    If your goal is to generate a consistent stream of cash, maybe to supplement your salary, cover retirement expenses, or simply earn passive income, then you’ll likely want to focus on high-yield dividend stocks. These are companies that pay out a larger portion of their profits in dividends and can offer reliable quarterly income.

    Do you want growth alongside income?

    Some investors aren’t just in it for the steady payouts, they also want their investment to grow in value over time. If that sounds like you, look for dividend growth stocks: companies that may not have sky-high yields right now but have a track record of steadily increasing their dividends year after year. These stocks offer a balance of income and long-term capital appreciation.

    What’s your risk tolerance?

    Every investor has a different comfort level when it comes to risk. Are you okay with a bit of volatility if it means higher returns, or do you prefer stability even if the rewards are smaller? For lower risk, you might lean toward blue-chip companies with strong dividend histories. If you’re open to more risk, you could explore smaller or newer companies with emerging potential.

    How long do you plan to invest?

    Your investment horizon, whether you’re investing for a few years or several decades, will shape your strategy. Short-term investors might prioritize immediate yield, while long-term investors can benefit from compounding returns by reinvesting dividends and letting their portfolio grow over time.

    By taking the time to understand your own financial goals, you’ll be in a much better position to choose dividend stocks that truly work for you, whether you’re building a retirement plan, saving for a major milestone, or just looking to make your money work a little harder.

    Step 3: Use a Stock Screener to Find Dividend Stocks

    Now that you’ve got a clearer picture of your investment goals, it’s time to start hunting for dividend stocks that fit your needs. But with thousands of stocks out there, where do you even begin?

    That’s where a stock screener comes in — and it can be your best friend in this process.

    Think of a stock screener like a powerful search engine designed just for investors. Instead of scrolling endlessly through financial news or stock listings, a screener lets you apply specific filters to narrow down your options. Want companies with a dividend yield above 4%? Looking for stocks with a low payout ratio and steady earnings? You can find them in just a few clicks.

    One great place to start is the Stocks Telegraph Screener. It’s a user-friendly tool built for investors of all levels. Here, you can explore various dividend-focused filters to instantly sort through companies based on:

    • Dividend yield
    • Payout ratio
    • Sector or industry
    • Market cap
    • Recent performance
    • Analyst sentiment

    You can even access curated lists, like “Best Dividend Stocks”, which showcase companies with strong fundamentals and a history of rewarding shareholders.

    Why is this so helpful? Because instead of relying on hype or guesswork, you’re making decisions backed by real data. And that’s exactly what smart investing is all about.

    So take a few minutes to explore the screener, play with the filters, and build a watchlist of stocks that align with your income and growth goals. It’s not just about picking any dividend stock, it’s about picking the right one for you.

    Step 4: Evaluate Key Dividend Metrics

    When analyzing dividend stocks, consider the following metrics:

    • Dividend Yield: Indicates the annual dividend payment as a percentage of the stock price. A higher yield may seem attractive, but extremely high yields can be a red flag.
    • Payout Ratio: Shows the proportion of earnings paid out as dividends. A sustainable payout ratio is typically below 60%.
    • Dividend History: Assess the company’s track record of paying and increasing dividends. Consistent dividend growth is a positive sign.
    • Earnings Stability: Stable and growing earnings support consistent dividend payments.

    Step 5: Analyze the Company’s Financial Health

    Beyond dividends, evaluate the company’s overall financial health:

    • Revenue and Earnings Growth: Consistent growth indicates a strong business model.
    • Debt Levels: High debt can be risky, especially if earnings decline.
    • Cash Flow: Positive free cash flow ensures the company can maintain dividend payments.

    Use financial statements and ratios to assess these factors.

    Step 6: Think About the Industry and the Bigger Picture

    Not all industries are created equal when it comes to paying reliable dividends. Some sectors, like utilities, consumer staples, and healthcare, are known for their stability, even when the economy hits a rough patch. That’s because people still need electricity, groceries, and medical care, no matter what’s happening in the broader market.

    Before you invest in a dividend-paying company, take a moment to think about the industry it operates in. Ask yourself: Is this a sector that tends to hold up well during recessions? Is it exposed to rapid technological changes or global market swings?

    A company’s ability to consistently pay, and hopefully grow, its dividend depends not just on its internal financials but also on external economic factors. By understanding how the business might be affected by inflation, interest rate changes, or geopolitical events, you’ll be better prepared to choose dividend stocks that are built to last.

    Step 7: Don’t Put All Your Eggs in One Basket

    One of the biggest mistakes new investors make is falling in love with a single dividend stock and going all in. While it might seem like a great idea at first, it’s risky,  because if that company faces trouble and cuts its dividend, your entire income stream could take a hit.

    That’s why it’s smart to spread your investments across different sectors and companies. This strategy, known as diversification, helps reduce risk. For example, if you hold stocks in energy, real estate, tech, and healthcare, a slump in one industry is less likely to sink your entire portfolio.

    Think of your dividend portfolio like a well-balanced meal. You want a mix of ingredients that complement each other,  not just one dish served on repeat. Diversifying helps ensure that your investments stay resilient, no matter what the market throws your way.

    Step 8: Keep a Close Eye on Your Investments

    Once you’ve built a dividend portfolio, the job isn’t over. Stocks aren’t a “set it and forget it” game, especially when it comes to income investing.

    It’s important to monitor your dividend stocks regularly. Keep tabs on how the companies are performing, check for any news about dividend increases or cuts, and watch broader market trends that could impact their earnings. A company that was solid a year ago might now be showing warning signs, and it’s better to spot those early.

    Also, revisit your own goals from time to time. Has your financial situation changed? Are you looking for more income now or more growth? Staying proactive and making small adjustments along the way ensures your portfolio continues to work for you, not the other way around.

    Conclusion: Building Your Dividend Game Plan

    Getting started with dividend investing may feel intimidating, but once you understand the basics, it becomes much more manageable — and even exciting. By defining your goals early on, using smart tools like the Stocks Telegraph’s Screener and Dividend Calendar to find the right companies, and paying attention to both financial data and the bigger economic picture, you’ll be well on your way to making smart investment choices.

    Add in a diversified portfolio and regular check-ins, and you’re not just buying stocks — you’re building a long-term source of passive income that can grow alongside you. With a thoughtful approach, your first dividend stock might just be the beginning of a very rewarding financial journey.

  • Best US Stocks Dividend to Buy and Hold in 2024

    Best US Stocks Dividend to Buy and Hold in 2024

    In a financial landscape often characterized by rapid changes and short-lived trends, the timeless strategy of investing in US stocks dividend for the long haul remains the best approach to take in the current economic climate.

    As just a few more months remain for 2023, the wisdom of patient and persistent wealth-building comes to the forefront.

    The cadence of the passing months reminds us of the true essence of successful investing – the ability to think beyond immediate fluctuations and focus on building a robust financial future.

    This article is dedicated to unraveling the intricacies of selecting and holding stocks across the US stocks dividend calendar that have stood the test of time and have the potential to weather the uncertainties of the future.

    Long-Term Dividend Strategy

    A Long-Term Dividend Strategy involves a deliberate approach to selecting and holding US stocks dividend with the goal of generating consistent income and capital appreciation over an extended period.

    Long-Term Dividend Strategy

    Here’s a comprehensive strategy for someone seeking long-term dividend picks:

    • Investment Horizon

      Embrace a patient and extended investment horizon, aiming to hold US stocks dividend for several years or even decades to fully realize the benefits of compounding and income growth.

    • Dividend History

      Give preference to companies that have demonstrated a history of reliable dividend payments and, ideally, a pattern of increasing dividends over the years.

      Look for US stocks dividend aristocrats or companies with a history of consecutive annual dividend increases.

    • Sustainable Payout Ratio

      Assess a company’s dividend payout ratio (dividends divided by earnings) to ensure that dividends are sustainable throughout the dividend calendar, and not overly strained by earnings fluctuations.

      A lower payout ratio is generally more favorable for long-term stability.

    • Quality and Moat

      Seek companies with durable competitive advantages or economic moats that protect their revenue streams, ensuring a higher likelihood of sustained cash flows to support dividend payments.

    • Sector Diversification

      Build a diversified portfolio across sectors to reduce risk and capitalize on potential opportunities in various economic cycles.

      This way you would have a collective yield that is attractive relative to US stocks average dividend yield.

    • Dividend Yield and Growth Balance

      Strive for a balance between attractive US stocks dividend yield and potential dividend growth.

      High yields might signal undervaluation but prioritize companies that can sustain and grow dividends over time.

    • Financial Health

      Examine a company’s financial health, including debt levels, cash reserves, and profitability, to ensure it can weather economic downturns without compromising dividend payments.

    • Market Volatility Utilization

      View market downturns as opportunities to accumulate quality dividend stocks at more favorable prices, leveraging dollar-cost averaging to spread out purchases over time.

    • Reinvestment and Compounding

      Consider enrolling in Dividend Reinvestment Plans (DRIPs) to automatically reinvest dividends back into purchasing additional shares, harnessing the power of compounding.

    • Continuous Monitoring and Review

      Regularly review the performance and fundamentals of your dividend stocks, ensuring they continue to meet your long-term investment objectives.

    • Emotional Discipline

      Maintain a disciplined approach, refraining from making hasty purchase or sale choices influenced by temporary market fluctuations.

    • Tax Efficiency

      Be mindful of tax implications, as qualified dividends may be taxed at a lower rate. Consult a tax professional to optimize your strategy for tax efficiency.

    • Portfolio Rebalancing

      Regularly adjust your portfolio to maintain alignment with your long-term objectives and risk tolerance.

    • Global Consideration

      Explore opportunities for international dividend stocks to diversify across geographical regions and access different economies.

    Metrics to Consider

    As most investors know, US stocks dividend yield and dividend growth rates are crucial metrics to consider whenever dividend stocks are involved.

    Metrics to Consider
    Stocks Telegraph

    However, over the long term, it holds significance to extend your perspective beyond the immediate.

    Long-term dividend investing requires a more comprehensive evaluation that encompasses both the present and the future stability of a company’s dividend payouts.

    Therefore, we underscore the significance of the following metrics to consider, in this regard:

    • Earnings per Share (EPS)

      Strong and growing earnings can support sustainable dividends.

      Compare a company’s EPS with its dividend payments to assess if dividends are well-covered by earnings.

    • Free Cash Flow

      Free cash flow is the amount of cash a company generates after covering its operating expenses and capital expenditures.

      Adequate free cash flow is essential for maintaining and increasing dividend payments.

    • Debt-to-Equity Ratio

      A substantial debt-to-equity ratio can signal financial strain and influence a company’s capacity to sustain dividend payments.

    • Return on Equity (ROE)

      A higher ROE suggests that a company efficiently generates profits from shareholders’ equity, which can support dividend payments.

    • P/E Ratio

      While not a direct dividend metric, the Price-to-Earnings ratio can offer insights into the valuation of a stock relative to its earnings potential.

      A reasonable P/E ratio suggests a balanced valuation.

    • Revenue and Earnings Growth

      Consistent revenue and earnings growth are positive indicators of a company’s financial health and its potential to sustain and increase dividend payments.

    • Industry and Competitive Landscape

      Evaluate The company’s standing within its sector and its competitive strengths. Strong industry positioning can contribute to stable cash flows and dividends.

    • Management’s Commitment

      Assess management’s history of prioritizing dividends, shareholder-friendly policies, and their strategic focus on long-term value creation.

    • Market Capitalization

      Larger, established companies with a greater market cap may offer more stability and resources to maintain dividends over the long term.

    Economic Outlook for 2024

    It would only be wise to consider what the economic outlook for 2024 is looking like before proceeding with picking long-term dividend stocks for your investment portfolio, in order to gauge the more systematic forms of risk.

    Economic forecasts and trends play a crucial role in shaping the performance of different industries and companies, ultimately impacting the stability and growth potential of dividend-paying stocks.

    As you evaluate potential investments, here are some factors to consider in order to make an informed decision to make the most out of US stocks average dividend yield:

    • Global Growth is Slowing

      In a climate of decelerating global growth, prudent dividend investors should prioritize companies with stable revenue streams and resilient earnings.

      Businesses that have demonstrated the ability to maintain or grow dividends during economic downturns can provide a buffer against the uncertainties of slower growth.

      Industries such as tech, healthcare, and consumer staples, which provide products and services with consistent demand, become attractive choices.

      Dividend investors should emphasize quality and sustainability, favoring companies with solid track records of dividend payments even in challenging economic environments, where US stocks average dividend yield could take a hit.

    • Rising Interest Rates

      As central banks raise interest rates to combat inflation, dividend investors should be cautious of companies with high debt burdens, as increased borrowing costs could strain profitability and dividend payments.

      Prioritize businesses with strong cash flow generation and prudent capital allocation practices.

      While some dividend stocks may experience short-term volatility due to rate hikes, sectors like financials might benefit from a higher interest rate environment, potentially leading to improved interest margins and enhanced profitability that support dividend distributions and US stocks average dividend yield.

    • High Inflation

      Heightened inflation levels prompt dividend investors to seek companies with pricing power, capable of maintaining their profit margins despite rising costs.

      Industries providing essential goods or services, like utilities and healthcare, may offer a hedge against eroding purchasing power.

      Long-term dividend investors can also explore dividend growth strategies, emphasizing companies with a US stocks dividend history of consistent raises.

      These increases can potentially outpace inflation, ensuring that the income received maintains its value over time, even in an inflationary environment.

    Top US Dividend Stocks for the Long-Term

    And now, onto the section that has captured everyone’s anticipation.

    Our US stock dividend list you can buy and hold for 2024, as part of your long-term strategy, to maximize your US stocks average dividend yield.

    1. British American Tobacco

      The first name on our US stock dividend list is British American Tobacco (BTI), the 3rd largest global tobacco company, which stands out for long-term dividend investors.

      Its diverse portfolio includes renowned cigarette brands like Kent and Lucky Strike.

      BAT’s strategic shift towards reduced-risk products led to market leadership in the US and Europe.

      While traditional cigarettes still drive revenue, BTI forecasts 3% – 5% growth due to its global presence.

      This inflation-resistant industry thrives during downturns, evident from a 47% rise in sales during the pandemic.

      Valued attractively among peers and with the highest US stocks dividend yield, BTI maintains a sustainable 65% payout.

      A 8.8% annualized yield, backed by self-funded transformation, makes BTI a robust choice in a resilient sector.

    2. Telephone and Data Systems

      Telephone and Data Systems, Inc (TDS) stands as a resilient Fortune 1000 player, extending high-speed Internet, TV, and phone services across rural and suburban landscapes in multiple states.

      With 1.2 million connections spanning 32 states and an 84% stake in US Cellular (USM), TDS holds sway over 6 million Americans.

      Despite the lead cable hiccup, TDS remains on course to join the Dividend King ranks in 2024, boasting 49 years of uninterrupted dividend growth.

      Favorable TDS preferred shares, yielding ~11%, offer a haven in the telecom sector turmoil.

      Lead sheathing concerns seem surmountable, as TDS forges ahead, primed for a rewarding horizon, better than the US stocks average dividend yield.

    3. Ark Restaurants

      Amidst the challenges faced by Ark Restaurants (NASDAQ: ARKR), its solid balance sheet and strategic efforts stand out.

      Despite recent setbacks, including pandemic impact and margin contraction, the company holds a manageable long-term debt and substantial cash reserves.

      This positions it well to endure short-term hardships and potential recession risks.

      With a current dividend yield of 4.13% (rising to 5.50% if dividends are fully reinstated), Ark Restaurants presents an enticing opportunity for patient, long-term dividend growth investors.

      While navigating inflation and a potential recession, the company’s steady revenue growth and debt reduction underscore its resilience.

      For those willing to weather near-term uncertainties, Ark Restaurants holds promise for sustained dividend gains.

    4. Cisco Systems

      Next up on our US stock dividend list, Cisco Systems, Inc. (NASDAQ: CSCO) shines as a prime pick for long-term dividend investors.

      Impressively, despite its extensive scope and modest revenue growth, the management maintains stellar profitability.

      The company’s solid US stocks dividend history and consecutive hikes attest to its commitment to rewarding shareholders.

      Notably, Cisco adeptly navigates challenges, boasting robust YoY revenue growth even in a demanding landscape.

      With a burgeoning global market of untapped internet users, Cisco’s colossal scale and execution prowess position it to seize substantial growth opportunities.

      This “Strong Buy” stock showcases unwavering financial strength, an impressive balance sheet, and a sustainable dividend growth outlook, bolstering its appeal for astute investors.

    5. Oracle

      Oracle (NYSE: ORCL) emerges as a compelling choice for long-term dividend investors, despite initial skepticism, and the last name on our US stock dividend list.

      While its current yield of 1.15% trails the S&P 500 average, focus on sustained dividend growth – an impressive 10% since 2010 (excluding 2009) – signals its potential.

      Notably, substantial share repurchases and a transition to cloud services have fortified Oracle’s position.

      Enhanced topline growth, declining capital expenditure, and forecasted earnings growth of 8% and 13% over the next 2 years underscore a robust dividend outlook.

      Oracle’s stable enterprise-focused model, coupled with a declining payout ratio, positions it favorably for prudent investors seeking enduring dividends.

    Total Return Potential – Beyond Dividends

    Investors seeking dividend stocks as part of a long-term strategy can enjoy benefits beyond just dividends.

    While dividends provide a consistent stream of income, a long-term dividend investing approach offers a range of additional advantages that contribute to overall portfolio growth and stability.

    Here are some of the benefits:

    • Total Return Potential

      Long-term dividend stocks have the potential to deliver not only dividend income but also capital appreciation over time.

      Reinvested dividends can contribute significantly to the total return of an investment, harnessing the power of compounding to amplify gains.

    • Compounding Effect

      Reinvesting dividends allows for the compounding effect, where the reinvested income generates additional income, creating a snowball effect that accelerates wealth accumulation over the long term and maximizes US stocks dividend yield.

    • Lower Volatility

      Dividend-paying companies often exhibit more stable stock prices, leading to reduced volatility in the portfolio.

      This stability can provide a cushion during market downturns and contribute to smoother long-term investment returns.

    • Quality and Resilience

      Companies that prioritize dividend payments tend to be more financially stable and well-established, making them less vulnerable to economic fluctuations.

      Investing in such companies can offer a measure of resilience against market uncertainties.

    • Discipline and Patience

      Long-term dividend investing encourages discipline and patience. Investors are less likely to be swayed by short-term market fluctuations, enabling them to stay focused on their investment objectives and avoid impulsive decisions.

    • Income Stream in Retirement

      For retirees or those planning for retirement, a portfolio of long-term dividend stocks with a great US stocks dividend yield can provide a consistent income stream, helping to meet ongoing financial needs without depleting the principal.

    • Inflation Hedge

      Dividend growth can potentially outpace inflation, helping to maintain the purchasing power of income over time.

      Companies that regularly raise dividends may provide a hedge against rising living costs.

    • Potential Tax Advantages

      In some jurisdictions, qualified dividends may be subject to lower tax rates than other forms of investment income, such as interest or short-term capital gains.

    • Behavioral Benefits

      Long-term dividend investing promotes a buy-and-hold mentality, discouraging frequent trading and market-timing attempts.

      This can lead to reduced transaction costs and more consistent, rational investment decisions.

    • Wealth Transfer and Legacy Planning

      Long-term dividend stocks can be valuable assets for intergenerational wealth transfer, allowing investors to pass on a source of income and potential capital appreciation to heirs.

    The Importance of Stable Leadership

    Stable leadership is of paramount importance when evaluating companies for long-term dividend investments.

    Consistent and effective leadership provides a solid foundation for a company’s ability to maintain and grow its dividend payments over time, making it a critical factor for dividend-focused investors.

    Most importantly, stable leadership is associated with consistent decision-making and strategic direction.

    A company with a consistent leadership team is more likely to maintain a steady dividend payment track record, giving dividend investors the assurance of regular income.

    Moreover, long-term dividend investors often seek companies that not only pay dividends but also have the potential to increase those payments over time.

    Stable leadership can lead to prudent financial management, which is crucial for generating excess cash flows that can be reinvested into higher dividend payments.

    At the end of the day, this is all about shareholder value creation.

    Executives who have been with the company for a longer period are more likely to align their decisions with the interests of dividend-seeking shareholders, aiming to maximize US stocks dividend yield and overall total returns.

    Leveraging Downturns for Advantage

    For long-term dividend investors, downturns and bear markets can be leveraged strategically to enhance their advantage.

    During market declines, dividend stocks often experience price drops, leading to higher US stocks dividend yield.

    It is crucial to understand that downturns offer an opportunity to purchase high-quality dividend stocks at discounted prices.

    As stock prices fall, dividend yields increase, making it an ideal time to add to your dividend portfolio. This positions you to lock in higher yields for the long term.

    Similarly, dividends provide a reliable income stream, even when stock prices are plummeting.

    This income can help cushion the impact of market downturns and offer peace of mind, allowing investors to wait out the storm without the need to sell assets.

    In essence, dividend investors can navigate bear markets by capitalizing on discounted prices, maximizing reinvestment effects, and staying committed to their long-term income objectives.

    Embracing market volatility as an opportunity rather than a threat can ultimately strengthen the potential for sustained dividend income and growth.

    Conclusion

    As we approach the final months of 2023, the value of patient and persistent wealth-building takes center stage.

    The passage of time reinforces the essence of successful investing – the ability to transcend immediate fluctuations and prioritize a resilient financial future.

    This article has delved into the intricacies of selecting and maintaining dividend stocks that have stood the test of time and exhibit the potential to thrive amid future uncertainties.

    The Long-Term Dividend Strategy underscores the significance of investment horizon, US stocks dividend history, sustainable payout ratios, quality, sector diversification, and more.

    In a rapidly evolving financial landscape, the wisdom of long-term dividend investing remains a beacon of stability and opportunity, guiding investors toward enduring prosperity and financial well-being.

    Frequently Asked Questions

    Is It Risky to Live Off Dividends?

    Yes, it can be risky to live off dividends, especially if you have a large portfolio. In the event of a stock market decline, your dividend could be cut or even eliminated.

    You also need to make sure that your portfolio is diversified enough to withstand a market downturn.

    Is There a Downside to Long-Term Dividend Investing?

    Yes, there are a few downsides to long-term dividend investing. First, you may not get the same returns as you would with other types of investments, such as growth stocks.

    Second, you may have to pay more taxes on dividends than on capital gains. Third, dividend stocks can be more volatile than other types of stocks.

    How Much Dividends Does $1 Million Make?

    The number of dividends you would receive from $1 million depends on the dividend yield of the stocks in your portfolio.

    A US stocks dividend yield of 3% would generate about $30,000 in dividends per year.

    What Stocks Have Paid the Longest Dividends?

    Some of the stocks that have paid the longest dividends include AT&T, Coca-Cola, and Johnson & Johnson.

    These companies have a long US stocks dividend history and are considered to be relatively safe investments.

    How Can I Make $1000 A Month Passively, Through Dividends?

    To make $1000 a month passively through dividends, you would need to invest about $300,000 in dividend stocks with a US stocks dividend yield of 3%.

    This is a significant amount of money, but it is possible to achieve it over time with disciplined investing.

    Are Monthly Dividends Better Than Yearly Dividends?

    This question doesn’t have a conclusive response. Some investors prefer monthly dividends because they provide a steady stream of income.

    Others prefer yearly dividends because they are larger and can be used to make a lump sum investment.

    Is Dividend Investing Better Than Growth?

    Dividend investing and growth investing are both valid investment strategies.

    Dividend investing focuses on stocks that pay dividends, while growth investing focuses on stocks that are expected to grow in value over time.

    A universal solution does not apply to which strategy is better. It depends on your individual goals and risk tolerance.

    Do Dividends Increase Wealth?

    Yes, dividends can increase wealth over time. Investing in dividend-paying stocks essentially involves purchasing a share of a company that is generating profits.

    Those profits are then paid out to shareholders in the form of dividends. As the company grows and profits increase, so too will your dividends. This can help you accumulate wealth gradually.

  • Best Dividend Stocks For Long Term

    Best Dividend Stocks For Long Term

    Dividend stocks for the Long term with growth potential are the best match for income investors. Companies with stocks that distribute a portion of their earnings to investors on a regular basis are dividend stocks. Most companies pay dividends to the shareholders each quarter. The top dividend stocks with growth keep on increasing their payouts with time. The best dividend stocks for the long term keep the investors satisfied and help them build an annuity-like cash stream.

    To choose a dividend stock, you analyze the historical trends and then you find the best dividend stocks for the long term that will be beneficial for you– even when the economy turns south. These companies usually are well established, with stable earnings and a lasting track record of dividend payouts.

    Dividend stocks are always in the investing circuit and the demand for buying new dividend stocks is high.

    We bring you the best dividend stocks for the long term that will help you grow your income stream and increase your wealth over time.

    Walgreens Boots Alliance

    Walgreens Boots Alliance (WBA) operates as a pharmacy-led health and beauty retail company. WBA has been benefiting from a surge in COVID-19 traffic to its stores this year. And with booster shots on the way, it’s a trend that may not be slowing down just yet.

    It is also providing Pfizer vaccines to children aged between 5 years to 11 years. While booster doses of Moderna and J&J vaccines are available on Walgreens stores.

    The company updated its fourth quarter 2021 outcomes, surpassing the earnings estimate of $1.02 per share. While Walgreens reported adjusted earnings per share of $1.17. The revenues were just ahead of the estimates as well, recording $34 billion compared to analyst projections of $33 billion.

    A big reason for the surprising performance was that Walgreens said it administered twice the number of vaccines it thought it would. If investors think there will be a slowdown to that trend in the coming quarters, this is still a great time to invest in WBA stock.

    Walgreens announced an increase to its dividend in July for the 46th year in a row. The stock is nearing becoming a Dividend King. Just four more increments and it’s there, at the very top of dividend stocks with growth. WBA’s current dividend yield is 3.88% with an annual dividend of $1.91 per share. That’s 83% of the $2.30 earning per share Walgreens reported for fiscal 2021.

    It seems to be in the perfect position to continue its dividend payouts. It’s still a sustainable payout, especially if the expansion opportunities with VillageMD pay off. Moreover, as things stand, the stock could rise in the future and make it the best dividend stock for the long term.

    AT&T Inc.

    AT&T (T) is a renowned telecommunication and media company. AT&T’s current yield of 8.2% definitely looks too good to be true. Let’s get into what’s happening with AT&T.

    It is soon going to split off from WarnerMedia, which will be joining media company Discovery. After the split, the company’s dividend policy will change. Investors might think this could affect the dividend stock.

    Once the deal is complete, AT&T says it will “re-size” its dividend to a sustainable 40% to 43% of free cash flow. How that will shape out is a bit of a question mark. But historically, AT&T has usually been able to pay a high yield with its payouts sitting comfortably above 4% in each of the past five years.

    Even though the payout will likely end up smaller in the future, AT&T looks to be a safe bet to continue providing its shareholders with an above-average payout. Especially in light of an encouraging performance this past quarter.

    AT&T delivered strong growth in the third quarter of 2021. The company is the best post-paid phone net add quarter in more than 10 years. That improved from 789,000 post-paid phone net adds to 928,000 net adds from the previous quarter.

    It is doing pretty well and is in a good position to hold up with its dividend payouts going forward. While, T stock is also trading around 52-week lows, putting in an upside position. While looking at its financial position it would be worth it to be included in the list of best dividend stock for the long term.

    ONEOK Inc.

    ONEOK Inc., (OKE) is a leading natural gas supplier in the United States. The company operates via its subsidiaries in the country. For investing in a dividend stock, there are a few factors to examine. Firstly, how consistent the company has dividend payout history? Does the company increase its dividend yield? And the last one is the financial performance of the company.

    It fulfills are the three requirements. Let’s break into that.

    The company surpassed the third quarter 2021 earnings mark and revenue estimates. OKE stock looks perfect as a dividend stock. ONEOK posted $0.88 per share in the third quarter, surpassing the Zacks Consensus Estimate of $0.83 per share by 6%. Also, the bottom line improved 25.7% year over year.

    As we know that the energy demand is rising and we can clearly see the pandemic impacts on energy supply. While improving economic conditions led to an increase in volumes of natural gas and natural gas liquids. That has helped OKE improve its quarterly results.

    Looking at the dividend yield of 5.78%, OKE stands at a $3.74 annual dividend at the moment. If we look at OKE’s dividend payout pattern since 2011, ONEOK has increased its quarterly dividends nearly 20 times. The company last increased the dividend in the first quarter of 2020. The trend shows that the dividend yield might increase anytime soon. So if anyone is looking for a stable and growing stock for the long term, OKE is one of the best dividend stocks for the long term, they can invest in it.

    Moreover, with strong quarterly performances, OKE stock will continue to increase the wealth of its investors and offer dividends.

    Iron Mountain Incorporated

    Iron Mountain (IRM) is the global leader for storage and information management services. The company has a real estate network of more than 90 million square feet across 50 countries. The metrics we mentioned for ONEOK stock, IRM fulfills all three with good financial performance and being consistent in dividend payouts.

    In the recent quarter, Iron Mountain achieved higher growth than expected. During the third quarter of 2021, IRM reported adjusted funds from operations of $0.72 per share. Surpassing the Zacks Consensus Estimate of $0.70. That is 14.3% higher than the year-ago quarter’s $0.63.

    Iron Mountain’s revenue growth during the quarter was over 9%. The total revenues were $1.13 billion, just missing the Zacks Consensus Estimate by 0.13%.

    IRM has a dividend yield of 5.19% and pays an annual dividend of $2.47 per share. On Nov 4, Iron Mountain announced its fourth-quarter common stock cash dividend of 61.85 cents per share.

    IRM is doing pretty on all fronts and that has been the reason for improved financial outcomes. A large firm like IRM is always a reliable dividend stock.

    Exxon Mobil Corporation

    Exxon Mobil (XOM) is a deity in the oil market. It operates globally and explores for and produces crude oil and natural gas. The company is also involved in other various products from the petroleum sector. Being a giant in the industry, it is great to have XOM as a dividend stock.

    XOM has a current dividend yield of 5.41%. That is almost a $3.52 annual dividend on each unit of common stock share.

    XOM stock has been on a ride recently as we see high demand in the market for oil. The rising demand for oil across the world has helped XOM shares burst in recent days. The stock is trading around its 52-week high. That means it’s not a good time to buy. Well, that doesn’t mean it’s not a good dividend stock. Just wait for the right moment when the stock is in the buying zone.

    The demand for oil doesn’t seem to slow down anytime soon and we can see XOM in a really good position securing a larger market share. That will ultimately boost its sales.

    Exxon is a solid company on the financial side as well. XOM has a good dividend yield and has a lasting history of continuous dividend payouts. Exxon has released its latest quarterly dividends on Nov. 10, 2021, and paid off in Dec 2021. The company has announced a dividend of $0.88 per common stock.

  • Top 5 Dividend Stocks To Watch in 2021

    When someone wants to invest in a particular stock, a common question comes in the mind. Whether the stock pays the dividend or not. It is because the dividend is the source of passive income. Moreover, it gives you a general idea about the company’s performance.

    If you are new to stocks, you might be thinking about what actually the dividend is. Informally dividend is the thank you gesture to its loyal shareholders in the form of cash or shares. Formally, a Dividend is the part of the money or additional shares that a company gives regularly to its shareholders from its profits. But it is not mandatory for the company to pay a dividend. The company’s board of directors decide whether to give dividend or not. Here are few things that you need to know about the dividend.

    Declaration Date: It is the announcement date of the dividend.

    Ex-Dividend date: It is the date on or after which the buyer of the stock is not eligible to get the dividend.

    Date of Record: It is the date on which a company identifies its shareholders.

    If you want a dividend, you must have to purchase stock two days before the date of record.

    Now we will discuss the top 5 monthly paying dividends stocks that we have picked for you.

    Pembina Pipeline Corporation (PBA)

    Let’s start with stock number 5 which is Pembina Pipeline Corporation with the ticker symbol PBA. It is the leading energy transportation and midstream service provider for more than 65 years. The company owns pipelines that transport hydrocarbons and natural gas products. The company has an 18.15-billion-dollar market cap. Its shares have climbed more than 37% in the past 12 months. First-quarter 2021 revenue grew by 22.38% over the year. Pembina has a 3.38% dividend yield which is relatively good in the covid era. Its three-year dividend growth rate is 18.79% and almost  53% payout ratio based on cash flow. Why this stock is good because oil and gas are the need of almost every segment of life. As the global economy is in the recovery phase, the demand for oil and gas will increase. This change will have a positive impact on Pembina Pipeline. Furthermore, its earnings per share for the second quarter of 2021 are estimated to be increased by 42.88% year over year. So based on these facts, we can say that this low dividend yield stock is less risky as compared to other industry peers.

    Prospect Capital Corporation (PSEC)

    Prospect Capital Corporation, which trades with ticker symbol PSEC, is on number 4 in our list of monthly paying dividends stocks. It is a business development company that provides financing to middle-market companies. The company has a 3.45-billion-dollar market cap and is doing business in 39 industries. Its portfolio is mostly debt-based and expanded to more than 120 companies. The company’s shares reflect almost 70% growth over the last year which is a good sign. Prospect Capital has quite a high dividend yield of 8.08% however, its dividend has not shown growth in the last three years. The stock is appealing in terms of monthly dividends due to its income potential. As it operates by financing middle-market companies in various industries ranging from candle makers to IT service providers, it generates consistent revenue and pays high yield dividends to its shareholders. Its shares are climbing significantly in this year and therefore it can pay you high dividends along with handsome profits.

    AGNC Investment Corp (AGNC)

    The third monthly dividend stock that we have picked for you is AGNC Investment Corporation with the ticker symbol AGNC. It is a real estate investment trust company that mainly invests in mortgage-backed securities instead of physical real estate. Due to this reason, AGNC stock is appealing to many investors. The company has a market cap of 8.96 billion dollars. Its shares increased by 33.15% over the last 12 months. By the end of March 2021, the company had a 90.3 billion dollars investment portfolio which is quite massive. The company has made a great comeback in 2021 after an ordinary performance due to covid-19. Its first-quarter 2021 revenue and income surged by more than 140%. So it means that the AGNC stock is now on its way to grow. AGNC dividend yield is 8.44% and the payout ratio is 29.86%. Due to its massive mortgage-backed portfolio, the rising interest rates do not affect the company’s business rather it benefits AGNC. Moreover, the current financial condition is favorable for the company to enhance its portfolio. So based on its safe business nature and financial condition, this stock can prove to be fruitful to you in the future.

    STAG Industrial, Inc. (STAG)

    The stock number two in our list of monthly dividend stocks is the STAG industrial Incorporation with the ticker symbol STAG. It is the real estate investment trust company acting as the lead in the light industrial and logistic properties. The company has more than a 6 billion market cap. its portfolio is spread across 39 states of the U.S. Approximately 40% portfolio belongs to e-commerce activity and Amazon is its biggest tenant. The company owns 494 buildings covering 99.1 million square feet of area. So you can now imagine how large a portfolio we are talking about.

    STAG shares rose almost 35% over the past year. This shows that the company performed exceptionally even in the pandemic era. Its dividend yield is 3.80% and 2.49% three-year dividend growth rate. The payout ratio based on cash flow is 52.11%. Its dividend track record is quite attractive as it is consecutively growing for the last seven years. Its quarterly revenue has been increased 13% over the year. A 16% projected increase for the second quarter of 2021 is a good sign for investors. Now you must have got an idea why this stock is good for you. Furthermore, this stock is safe and consistent so if you are too shy to come out of your comfort zone in terms of investment in stocks, STAG Industrial will suit well to you.

    Realty Income Corporation (O)

    Realty Income Corporation is another dividend-paying stock to watch in 2021. It is a real estate investment trust company. Although several companies pay monthly dividends, this company is well known for its monthly dividends. That’s why it actually trademarked “The monthly dividend company “ as its official nickname. The companies diversified portfolio includes 6600+ properties and 56 retail and other industries. The company is dealing with more than 600 clients across 50 states, Puerto Rico, and the United Kingdom. Its share jumped 13.39% over the past year. The first-quarter revenue represents almost 7% positive change. The dividend yield for the Reality Income is 4.18%. The three-year dividend growth is 10.41%. Since its listing, it has paid 611 consecutive dividends to its shareholders. The dividend is growing consecutively for the past 27 years which is not an ordinary thing. Even in the pandemic era, its diversified portfolio and discipline helped to maintain the dividend growth streak. Now the economy is coming back to life, we expect that its affected tenants like cinema operators and gyms will be in much better shape financially.