5 Dividend Picks To Maximize Your Portfolio

Some established companies distribute all of their earnings as dividends to shareholders, which can sometimes be more than the earnings itself, thus the payout ratio can be higher than 100%. A payout ratio is calculated by dividing dividends per share by earnings per share. A high payout ratio indicates that the stock is primarily focused in paying out dividends instead of retaining them to reinvest in other projects. The following is an analysis of five stocks with high dividend payout ratios; these are mature companies that focus on distributing the majority of their earnings as dividends to their shareholders. Stocks with high payout ratios are ideal for retirees or other private investors who desire to receive a quarterly income from their investments. Wynn Resorts Ltd (WYNN) reached a 52-week low of around $101 at the end of 2011, but is now trading around $110. The stock issues an annual dividend... Read more