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)
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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)
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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)
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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)
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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:

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Long-Term Stock Price Chart of Caterpillar (CAT)
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Long-Term Dividend Payment History of Caterpillar (CAT)
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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)
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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)
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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:

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Long-Term Stock Price Chart of Emerson Electric (EMR)
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Long-Term Dividend Payment History of Emerson Electric (EMR)
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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 Investing In A High-Yield Dividend Achievers Portfolio? ›

Many investors look to dividend-paying stocks to generate income in addition to capital gains. A high dividend yield, however, may not always be a good sign, since the company is returning so much of its profits to investors (rather than growing the company.)

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? ›

While high dividend yields are attractive, it's possible they may be 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.

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.

Are dividend portfolios worth it? ›

Dividend investing can be advantageous for those seeking steady income, such as retirees, as well as those who wish to take advantage of the compounding effects of reinvested dividends over the long term. But like all investment strategies, it comes with benefits and risks.

What is the downside of high yield dividend stocks? ›

But investors should be wary of chasing high dividend stocks, as all might not be as it seems. A company's high dividend might be because its stock has suffered a significant drop in share price, suggesting financial trouble that could imperil its ability to make future dividend payments.

What is the fallacy of dividends? ›

The Free Dividend Fallacy Could Be Costing You

A $1 dividend from a share of stock should be no more meaningful than selling $1 worth of shares, as the share price on average drops by the amount of the dividend when it is paid.

Why do some investors hate dividends? ›

But there is one big problem with funds that distribute dividends. What a dividend investor wants is a dividend that grows over time, and that's not usually the case with funds. They tend to adjust the dividend according to the evolution of net asset value-- the development of the market.

What is considered 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.

Can you live off a dividend portfolio? ›

Depending on how much money you have in those stocks or funds, their growth over time, and how much you reinvest your dividends, you could be generating enough money to live off of each year, without having any other retirement plan.

What is the average return on a dividend portfolio? ›

Dividend stocks are shares of companies that regularly pay investors a portion of the company's earnings. The average dividend yield of some of the top dividend stocks is 12.69%. The best dividend stocks are shares of well-established companies that increase their payouts over time.

Should I put all my money in dividend stocks? ›

Dividend investing can be a great investment strategy. Dividend stocks have historically outperformed the S&P 500 with less volatility. That's because dividend stocks provide two sources of return: regular income from dividend payments and capital appreciation of the stock price. This total return can add up over time.

Do you want stocks with high dividends? ›

A high dividend yield, however, may not always be a good sign, since the company is returning so much of its profits to investors (rather than growing the company.) The dividend yield, in conjunction with total return, can be a top factor as dividends are often counted on to improve the total return of an investment.

What are the disadvantages of paying dividends? ›

Paying dividends can be a double-edged sword. While it can attract new investors, boost stock prices, and maintain shareholder loyalty, it can also limit financial flexibility, have a negative effect on growth, and attract the wrong type of investors.

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.

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