Income Investing

The nail-biting price volatility of the stock market shows no sign of easing anytime soon. Triple-digit price swings are occurring practically on a daily basis. Since August and through mid-October, the Dow Jones Industrial Average has moved up or down more than 100 basis… Read More

It’s been said the best gifts sometimes come in the smallest packages. The same is often true for dividend-seekers — some small cap stocks can provide a reliable and sizeable source of income that’s quite uncharacteristic for a company of their size. And, aside from surprisingly large… Read More

As income investors, we can get caught up in yields… almost to a fault. But there is something else you should be studying that could make just as big a difference to your long-term returns: stocks that pay dividends. #-ad_banner-#That’s because dividend growth can make even lower-yielding stocks into big income producers over time. Take a look below at the income streams from a stock yielding 7% but not growing dividends, versus a 5% yielder that hikes payments an average of 10% a year in seven years. If you held 1,000… Read More

As income investors, we can get caught up in yields… almost to a fault. But there is something else you should be studying that could make just as big a difference to your long-term returns: stocks that pay dividends. #-ad_banner-#That’s because dividend growth can make even lower-yielding stocks into big income producers over time. Take a look below at the income streams from a stock yielding 7% but not growing dividends, versus a 5% yielder that hikes payments an average of 10% a year in seven years. If you held 1,000 shares trading at a $10 share price, then here is the income stream each would produce during one year: In just five years, that 5% yield would actually be worth more than the 7% yield. And just two years later, your income stream would grow to be 27% more than the stock yielding 7%. Keep in mind, this doesn’t take into account rising share prices. If both yields stayed the same, then the share price of the 5% yielder would have to grow to $17.72 — a 77% gain. Read More