Why Not Investing In A High-Yield Dividend Achievers Portfolio? (2024)

Do you want to put your money towork? Then it needs to do more than just sit in a bank account or get traded inand out of stocks.

Your money needsto get you paid, and the way to do that is through high-dividend stocks. Now,doing that isn't as easy as going out and buying the first high payer you canget your hands on. There are some characteristics to look for that will ensureyou'll continue to get paid for years to come.

Let's look at whyan individual investor should be buying high-dividend stocks, and what you needto seek out and what to avoid when picking these stocks for your portfolio.

In order to avoidbig investing mistakes, investors should focus on stocks with a higher marketcapitalization, a broader diversified business model which is also lessvolatile and finally a constantly growing business. The latest point makes iteasier for the company to hike dividends in the future. For income investorslike me and you, it is a very essential point.

However, today Ilike to introduce those dividend growth stocks that offer most of the abovementioned criteria. I like to show you only Dividend Achievers, stocks thathave grown dividends over 10+ years without a break.

Attached is a listof the best yielding Dividend Achievers. Which do you like?

These are my 9 favorite results...

Alliance Holdings -- Yield: 10.29%

Alliance Holdings (NASDAQ:AHGP) employs 4,439 people, generates revenue of $2,300.32 million and has a net income of $492.67 million. The current market capitalization stands at $2.23 billion.

Alliance Holdings’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $814.23 million. The EBITDA margin is 35.40% (the operating margin is 23.46% and the net profit margin 21.42%).

Financials:The total debt represents 36.62% of Alliance Holdings assets and the total debt in relation to the equity amounts to 148.41%. Due to the financial situation, a return on equity of 53.62% was realized by Alliance Holdings.

Twelve trailing months earnings per share reached a value of $4.44. Last fiscal year, Alliance Holdings paid $3.44 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 8.32, the P/S ratio is 0.97 and the P/B ratio is finally 3.95. The dividend yield amounts to 10.29%.

Stock Charts:

Why Not Investing In A High-Yield Dividend Achievers Portfolio? (2)
Long-Term Stock Price Chart of Alliance Holdings (AHGP)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (3)
Long-Term Dividend Payment History of Alliance Holdings (AHGP)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (4)
Long-Term Dividend Yield History of Alliance Holdings (AHGP)

BHP Billiton -- Yield: 6.36%

BHP Billiton (NYSE:BHP) employs 47,044 people, generates revenue of $56,762.00 million and has a net income of $14,955.00 million. The current market capitalization stands at $102.11 billion.

BHP Billiton’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29,180.00 million. The EBITDA margin is 51.41% (the operating margin is 39.90% and the net profit margin 26.35%).

Financials:The total debt represents 22.84% of BHP Billiton assets and the total debt in relation to the equity amounts to 43.70%. Due to the financial situation, a return on equity of 18.11% was realized by BHP Billiton.

Twelve trailing months earnings per share reached a value of $3.49. Last fiscal year, BHP Billiton paid $2.42 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 11.13, the P/S ratio is 1.80 and the P/B ratio is finally 0.79. The dividend yield amounts to 6.36%.

Stock Charts:

Why Not Investing In A High-Yield Dividend Achievers Portfolio? (5)
Long-Term Stock Price Chart of BHP Billiton (BHP)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (6)
Long-Term Dividend Payment History of BHP Billiton (BHP)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (7)
Long-Term Dividend Yield History of BHP Billiton (BHP)

HCP -- Yield: 5.86%

HCP (NYSE:HCP) employs 170 people, generates revenue of $2,266.28 million and has a net income of $893.19 million. The current market capitalization stands at $17.85 billion.

HCP’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,799.50 million. The EBITDA margin is 79.40% (the operating margin is 58.35% and the net profit margin 39.41%).

Financials:The total debt represents 45.67% of HCP assets and the total debt in relation to the equity amounts to 90.91%. Due to the financial situation, a return on equity of 8.31% was realized by HCP.

Twelve trailing months earnings per share reached a value of $0.80. Last fiscal year, HCP paid $2.18 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 47.56, the P/S ratio is 7.87 and the P/B ratio is finally 1.65. The dividend yield amounts to 5.86%.

Stock Charts:

Why Not Investing In A High-Yield Dividend Achievers Portfolio? (8)
Long-Term Stock Price Chart of HCP (HCP)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (9)
Long-Term Dividend Payment History of HCP (HCP)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (10)
Long-Term Dividend Yield History of HCP (HCP)

Realty Income -- Yield: 4.81%

Realty Income (NYSE:O) employs 127 people, generates revenue of $933.50 million and has a net income of $269.14 million. The current market capitalization stands at $11.13 billion.

Realty Income’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $827.48 million. The EBITDA margin is 88.64% (the operating margin is 25.00% and the net profit margin 28.83%).

Financials:The total debt represents 44.82% of Realty Income assets and the total debt in relation to the equity amounts to 87.92%. Due to the financial situation, a return on equity of 4.50% was realized by Realty Income.

Twelve trailing months earnings per share reached a value of $1.10. Last fiscal year, Realty Income paid $1.64 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 43.12, the P/S ratio is 11.92 and the P/B ratio is finally 2.04. The dividend yield amounts to 4.81%.

Stock Charts:

Why Not Investing In A High-Yield Dividend Achievers Portfolio? (11)
Long-Term Stock Price Chart of Realty Income (O)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (12)
Long-Term Dividend Payment History of Realty Income (O)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (13)
Long-Term Dividend Yield History of Realty Income (O)

Verizon Communication -- Yield: 4.72%

Verizon Communication (NYSE:VZ) employs 178,500 people, generates revenue of $127,079.00 million and has a net income of $11,956.00 million. The current market capitalization stands at $189.66 billion.

Verizon Communication’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $43,239.00 million. The EBITDA margin is 34.03% (the operating margin is 15.42% and the net profit margin 9.41%).

Financials:The total debt represents 48.68% of Verizon Communication assets and the total debt in relation to the equity amounts to 921.05%. Due to the financial situation, a return on equity of 37.65% was realized by Verizon Communication.

Twelve trailing months earnings per share reached a value of $2.41. Last fiscal year, Verizon Communication paid $2.16 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 19.34, the P/S ratio is 1.49 and the P/B ratio is finally 15.76. The dividend yield amounts to 4.72%.

Stock Charts:

Why Not Investing In A High-Yield Dividend Achievers Portfolio? (14)
Long-Term Stock Price Chart of Verizon Communication (VZ)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (15)
Long-Term Dividend Payment History of Verizon Communication (VZ)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (16)
Long-Term Dividend Yield History of Verizon Communication (VZ)

Caterpillar -- Yield: 4.01%

Caterpillar (NYSE:CAT) employs 114,233 people, generates revenue of $55,184.00 million and has a net income of $3,703.00 million. The current market capitalization stands at $46.33 billion.

Caterpillar’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,932.00 million. The EBITDA margin is 16.19% (the operating margin is 9.65% and the net profit margin 6.71%).

Financials:The total debt represents 46.39% of Caterpillar assets and the total debt in relation to the equity amounts to 234.59%. Due to the financial situation, a return on equity of 19.68% was realized by Caterpillar.

Twelve trailing months earnings per share reached a value of $5.83. Last fiscal year, Caterpillar paid $2.70 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 13.28, the P/S ratio is 0.84 and the P/B ratio is finally 2.78. The dividend yield amounts to 4.01%.

Stock Charts:

Why Not Investing In A High-Yield Dividend Achievers Portfolio? (17)
Long-Term Stock Price Chart of Caterpillar (CAT)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (18)
Long-Term Dividend Payment History of Caterpillar (CAT)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (19)
Long-Term Dividend Yield History of Caterpillar (CAT)

British American Tobacco -- Yield: 3.86%

British American Tobacco (NYSEMKT:BTI) employs 90,118 people, generates revenue of $21,794.61 million and has a net income of $5,293.04 million. The current market capitalization stands at $111.05 billion.

British American Tobacco’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,991.73 million. The EBITDA margin is 45.84% (the operating margin is 32.54% and the net profit margin 24.29%).

Financials:The total debt represents 46.85% of British American Tobacco assets and the total debt in relation to the equity amounts to 222.47%. Due to the financial situation, a return on equity of 51.30% was realized by British American Tobacco.

Twelve trailing months earnings per share reached a value of $6.72. Last fiscal year, British American Tobacco paid $4.62 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 17.65, the P/S ratio is 5.10 and the P/B ratio is finally 12.94. The dividend yield amounts to 3.86%.

Stock Charts:

Why Not Investing In A High-Yield Dividend Achievers Portfolio? (20)
Long-Term Stock Price Chart of British American Tobacco (BTI)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (21)
Long-Term Dividend Payment History of British American Tobacco (BTI)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (22)
Long-Term Dividend Yield History of British American Tobacco (BTI)

Exxon Mobil -- Yield: 3.78%

Exxon Mobil (NYSE:XOM) employs 75,300 people, generates revenue of $394,105.00 million and has a net income of $33,615.00 million. The current market capitalization stands at $322.66 billion.

Exxon Mobil’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $51,379.00 million. The EBITDA margin is 13.04% (the operating margin is 8.65% and the net profit margin 8.53%).

Financials:The total debt represents 8.33% of Exxon Mobil assets and the total debt in relation to the equity amounts to 16.70%. Due to the financial situation, a return on equity of 18.67% was realized by Exxon Mobil.

Twelve trailing months earnings per share reached a value of $5.61. Last fiscal year, Exxon Mobil paid $1.38 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 13.91, the P/S ratio is 0.82 and the P/B ratio is finally 1.86. The dividend yield amounts to 3.78%.

Stock Charts:

Why Not Investing In A High-Yield Dividend Achievers Portfolio? (23)
Long-Term Stock Price Chart of Exxon Mobil (XOM)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (24)
Long-Term Dividend Payment History of Exxon Mobil (XOM)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (25)
Long-Term Dividend Yield History of Exxon Mobil (XOM)

Emerson Electric -- Yield: 3.77%

Emerson Electric (NYSE:EMR) employs 115,100 people, generates revenue of $24,537.00 million and has a net income of $2,184.00 million. The current market capitalization stands at $33.36 billion.

Emerson Electric’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,936.00 million. The EBITDA margin is 20.12% (the operating margin is 14.44% and the net profit margin 8.90%).

Financials:The total debt represents 24.92% of Emerson Electric assets and the total debt in relation to the equity amounts to 59.53%. Due to the financial situation, a return on equity of 20.74% was realized by Emerson Electric.

Twelve trailing months earnings per share reached a value of $3.61. Last fiscal year, Emerson Electric paid $1.72 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 13.79, the P/S ratio is 1.36 and the P/B ratio is finally 3.44. The dividend yield amounts to 3.77%.

Stock Charts:

Why Not Investing In A High-Yield Dividend Achievers Portfolio? (26)
Long-Term Stock Price Chart of Emerson Electric (EMR)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (27)
Long-Term Dividend Payment History of Emerson Electric (EMR)
Why Not Investing In A High-Yield Dividend Achievers Portfolio? (28)
Long-Term Dividend Yield History of Emerson Electric (EMR)

These are the 60 best yielding MidCap Dividend Achievers:




Why Not Investing In A High-Yield Dividend Achievers Portfolio? (2024)

FAQs

Why not invest in high dividend stocks? ›

“One mistake to avoid,” Cabacungan says, “is to buy a company's stock simply because it issues a high dividend.” If the company has leveraged excessive debt to fund the dividend, it could come at the expense of future profitability and hurt growth prospects.

What are the disadvantages of a high dividend yield? ›

Disadvantages. High dividend yields may be attractive, but they may also come at the expense of the potential growth of the company. It can be assumed that every dollar a company is paying in dividends to its shareholders is a dollar that the company is not reinvesting to grow and generate more capital gains.

Why are high yield dividend stocks risky? ›

In some cases, a high dividend yield can indicate a company in distress. The yield is high because the company's shares have fallen in response to financial troubles. And the high yield may not last for much longer. A company under financial stress could reduce or scrap its dividend in an effort to conserve cash.

Is there a downside to dividend investing? ›

Despite their storied histories, they cut their dividends. 9 In other words, dividends are not guaranteed and are subject to macroeconomic and company-specific risks. Another downside to dividend-paying stocks is that companies that pay dividends are not usually high-growth leaders.

Is it better to invest in dividend stocks or growth stocks? ›

If you are looking to create wealth and have a longer time horizon, staying invested in growth will enable you to enjoy longer returns. But if you are looking for a more immediate return and steady cash flow, dividend investing could be the best choice for you.

Should I buy dividend stocks in my Roth IRA? ›

In addition to high growth investments, you should keep accounts that pay high dividends in your Roth IRA. Dividends are taxed as ordinary income, not capital gains. This means that you'll pay federal taxes on dividends as high as 37% in addition to any state or local taxes.

What dividend yield is considered high? ›

1 Therefore, any company that had a trailing 12-month dividend yield or forward dividend yield greater than 4.67% was considered a high-yielding stock. However, prior to investing in stocks that offer high dividend yields, investors should analyze whether the dividends are sustainable for a long period.

What is too high for a dividend payout? ›

A payout ratio that is between 75% to 95% is considered very high. It implies that the company is bordering towards declaring almost all the money it makes as dividends. This increases the risk of the company cutting its dividends because our formula is forward looking.

What is better a high dividend yield or a low Why? ›

The dividend yield measures how much income has been received relative to the share price; a higher yield is more attractive, while a lower yield can make a stock seem less competitive relative to its industry.

Is a high dividend yield a red flag? ›

High yields can be a sign of desperation. A company may resort to excessively distributing its profits to attract investors, especially when struggling to grow organically or facing financial difficulties. This practice, however, is unsustainable in the long run.

What is a good dividend yield for a portfolio? ›

What Is a Good Dividend Yield? Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment. Your own investment goals should also play a big role in deciding what a good dividend yield is for you.

Are dividend portfolios worth it? ›

There are several benefits to investing in dividend funds. Cash flow: Dividend funds' distributions provide investors with a stable and consistent source of income. Yield: These funds often generate higher dividend yields than broad market indexes, which can appeal to income-oriented investors.

What is the safest dividend stock? ›

PepsiCo has an impressive track record of increasing its dividend for 50 consecutive years. This consistent dividend growth, combined with the company's stable business model and strong cash flow from operations makes PepsiCo a top pick for a “safe” dividend stock.

Which company gives the highest dividend in the world? ›

World's companies with the highest dividend yields
SymbolExchangeDiv yield % (indicated)
TAPARIA DBSE702.99%
VITRO/A DBMV242.94%
99552 DTADAWUL186.05%
1114 DHKEX151.83%
27 more rows

What is the disadvantage of dividend yield? ›

Another limitation of dividend yield is that it does not consider other important financial metrics. For instance, a company with a high dividend yield may have a declining stock price, indicating underlying issues such as a lack of growth prospects or poor management.

Why should I buy a stock that doesn't pay dividends? ›

Thus, investors who buy stocks that do not pay dividends prefer to see these companies reinvest their earnings to fund other projects. They hope these internal investments will yield higher returns via a rising stock price. Smaller companies are more likely to pursue these strategies.

Why do some investors prefer high dividend-paying stocks? ›

Dividend-paying stocks allow investors to profit in two ways: through appreciation in the price of the stock and through distributions made by the company. In addition to providing consistent income, many dividend-paying stocks are in defensive sectors that can weather economic downturns with reduced volatility.

Why do high dividend stocks go down? ›

After a stock goes ex-dividend, the share price typically drops by the amount of the dividend paid to reflect the fact that new shareholders are not entitled to that payment. Dividends paid out as stock instead of cash can dilute earnings, which can also have a negative impact on share prices in the short term.

What are the risks of high dividend ETF? ›

Risk: While dividend ETFs provide greater diversification and may be less risky than individual stocks, they are still subject to market risk and can experience declines in value.

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