Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
ALERT

Memorial Day Sale: Dividend.com Premium Price Slashed — Redeem Now

Dividend logo

As much as I’m captivated by a good tale of gloom and doom, I’m also a skeptic.

So after seeing lots of stories recently about how dividend stocks are overpriced, why they’re bound to take a tumble, and why dividend investing is a style whose time is about to be over, I’ve started to think that maybe things aren’t as bad as lots of people think.

What to Watch For

To be sure, there are clear danger signs that should alert potential dividend investors to steer clear of certain stocks. The big one is whether the company is earning enough to pay a dividend. Once you scrape away any accounting tricks (which sometimes isn’t so easy to do), it should be clear that a company’s per-share earnings are greater than what’s paid out in the form of dividends. It’s kind of basic, but despite whatever rationale a company may offer for paying out more than is coming in, be cautious.

To read the Full Story, Go Premium or Log In

Popular Articles

News

Bank of America Leads 175 Stocks Going Ex-Dividend This Week

There are 175 stocks going ex-dividend this week starting Monday, May 29. For income investors...

News

PepsiCo Increases Dividend by 7%

Each day, companies across the globe announce upcoming dividend payouts. In our Dividend Payout...

Premium Shutterstock 472583920
News

The Market Glance for May 29: Nonfarm Payrolls Headline Memorial Day Week

Investors are celebrating the unofficial kickoff of summer this week, a period normally...