This Year Dividend Payouts Are Expected To Pass The $500 Billion Mark For The First Time 

Last week the Wall Street Journal reported that dividend payments from the S&P 500 companies are expected to exceed $500 billion in 2020. This will be the most cash ever paid to stock market investors. Are you doing everything you can to get your share?

The WSJ article does not give an estimate on how much above the half-trillion dollar mark will be paid out to investors. It noted that in 2019, the S&P 500 companies paid out $485.5 billion, which was up 6.4% from 2018.

The problem is that with the 29% gain by the S&P 500 in 2019, the index yields just 1.8%. If dividend payments go up 6% this year, investors in S&P tracking ETFs will still earn less than a 2% yield.

To invest for dividends, I recommend owning individual stocks. You can find high yield stocks that will pay an attractive current income. For dividend growth stocks – those with rising dividends, there are many with higher current yields and attractive dividend growth rates.

Big-name growth stocks have powered the gains 2019 and first few days of this year. That will not always be the way the stock market rolls. Value again will have its day. In my research, value stocks are those with the aforementioned above-average yields combined with growing dividends.

Here are three stocks from my watchlist that meet those two criteria. You should do your research to understand what will allow these companies to continue to grow their dividend rates year after year and to see how they fit into your own investing strategy.

Douglas Emmett, Inc (DEI) is a real estate investment trust (REIT) that owns and operates approximately 18.4 million square feet of Class A office space and 4,147 apartment units in the coastal markets of Los Angeles and Honolulu.

This is a fully integrated real estate company, specializing in high barrier to entry markets.

Douglas Emmett is growth-focused, increasing office ownership by 59% and apartments by 45% since the 2007 IPO. Funds from operations as adjusted (AFFO) per share has compounded by 7.4% per year since the IPO.

1 2
View single page >> |

Disclaimer: The information contained in this article is neither an offer nor a recommendation to buy or sell any security, options on equities, or cryptocurrency. Investors Alley Corp. and its ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.