My colleague David Sterman recently highlighted an interesting company called Equinix (Nasdaq: EQIX), which owns facilities that house Internet traffic equipment. That may not sound interesting by itself, but it was a rather unusual move the company recently made that caught my attention. Equinix decided to become a … Read More

One of the things I like best about dividends is that they are paid in cash and thus impossible to fake. With that said, however, dividends can be cut or eliminated altogether if a weak company gets into trouble. Dividend cuts may happen… Read More

One of the things I like best about dividends is that they are paid in cash and thus impossible to fake. With that said, however, dividends can be cut or eliminated altogether if a weak company gets into trouble. Dividend cuts may happen if earnings plummet, debt covenants kick in, acquisitions are made and any number of other reasons. If you’re an investor who relies on dividends to supplement your paycheck or retirement, then the bottom line that you’ll have… Read More

One of the things I like best about dividends is that they are paid in cash and thus impossible to fake. With that said, however, dividends can be cut or eliminated altogether if a weak company gets into trouble. Dividend cuts may happen if earnings plummet, debt covenants kick in, acquisitions are made and any number of other reasons. If you’re an investor who relies on dividends to supplement your paycheck or retirement, then the bottom line that you’ll have less income to cover life’s necessities.#-ad_banner-# The best way to avoid a dividend cut is to limit your investments to financially strong companies that manage their cash conservatively. A key measure for this is the dividend payout ratio, which is the percentage of earnings the company allocates to cover dividends. Lower payout creates a safe cushion for covering the dividend even if temporary setbacks depress the company’s earnings. The great news for income investors is that we are in the middle of… Read More

If you’re saving for retirement or just need a dependable source of income, then I have found a few stocks I consider standouts for their safety and high yield. With these stocks, it’s possible to build a… Read More

With interest rates still near record lows, dividend stocks remain one of the only options available for income-hungry investors — especially those at or nearing retirement. Thankfully, there are plenty of options out there. We at StreetAuthority… Read More

Big pharmaceutical stocks have fallen out of favor, especially among investors seeking high-growth investments. Not only are these firms releasing fewer new blockbuster drugs, but the sector as a whole is seeing the headwinds from efforts to… Read More

Because of new higher tax rates on dividends and capital gains for upper-bracket earners this year, it’s more important than ever to choose investments that are worth holding for the long-term and that grow their dividends. The best way to offset the negative… Read More

Because of new higher tax rates on dividends and capital gains for upper-bracket earners this year, it’s more important than ever to choose investments that are worth holding for the long-term and that grow their dividends. The best way to offset the negative effects of these new tax hikes is through a rising dividend, which also offers inflation protection and support for the share price. Consider the example of a stock yielding 5% with… Read More

Because of new higher tax rates on dividends and capital gains for upper-bracket earners this year, it’s more important than ever to choose investments that are worth holding for the long-term and that grow their dividends. The best way to offset the negative effects of these new tax hikes is through a rising dividend, which also offers inflation protection and support for the share price. Consider the example of a stock yielding 5% with a $100 share price and $5 per-share dividend. An increase in the dividend tax rate from 15% to 20% reduces this stock’s after-tax income to $4 per share from $4.25 ($5 – 20% = $4). But if the stock also grows its dividend by a 5% annual rate, then income quickly rises despite the tax hike. Within five years, this stock will be paying a $6.38 per-share dividend that yields after-tax income of $5.11. That’s considerably more than the $4.25 per share of income collected initially at the… Read More

Utilities stocks occupy a unique niche in the investment world. No one who wants to get rich buying shares of Exelon (NYSE: EXC) or Duke Energy (NYSE: DUK) is expecting… Read More

Utilities stocks occupy a unique niche in the investment world. No one who wants to get rich buying shares of Exelon (NYSE: EXC) or Duke Energy (NYSE: DUK) is expecting to double their money in a few months. That’s because stocks in this heavily-regulated industry tend to be predictable and rarely produce outsized gains.#-ad_banner-# If you are a dividend investor, however, then utilities stocks have a… Read More

Utilities stocks occupy a unique niche in the investment world. No one who wants to get rich buying shares of Exelon (NYSE: EXC) or Duke Energy (NYSE: DUK) is expecting to double their money in a few months. That’s because stocks in this heavily-regulated industry tend to be predictable and rarely produce outsized gains.#-ad_banner-# If you are a dividend investor, however, then utilities stocks have a lot to offer. Many stocks in this sector carry impressive yields… 4-6% yields are very common. The margin of safety these generous yields provide make utilities stocks especially well-suited for a long-term buy-and-hold strategy. In fact, some of them are perfect candidates to be what we call “Retirement Savings Stocks” — stocks that provide a safe, stable and reliable source of high income even if the… Read More