4 Great Companies With Reliably High Dividends
With interest rates near zero percent, buying bonds is not the best way for income investors to preserve or even enhance capital. Sure you may be guaranteed a payment, but inflation may erode the real value of that payment or when interest rates rise, the bond's price could crash. An alternative to locking capital in a bond is to buy quality high dividend yielding stocks. Good dividend stocks pay a consistent yield that can grow with their success. They also have the potential for capital gains with the growth of the company, the economy as a whole, or as a hedge against inflation. Finally, stocks have much more liquidity than bonds and losses can be limited by stop loss orders or protective puts. Before just buying the stock with the highest listed dividend yield, investors need to be assured that a company pays out their dividend due to strong profitability,... Read more