When to buy stocks for dividend

When to buy stocks for dividend

Posted: kuperboy Date of post: 20.07.2017

Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. A steady cash stream. Maybe that cash stream is used to supplement income, or maybe it's a way of using reinvested dividends to build wealth over very long time horizons.

Dividend Stocks – Can You Buy Stock Just For The Dividend? - Show #062

Either way, the only way one can do that is to find companies that can reliably pay that high yield dividend. We asked three of our contributors to highlight a stock they see as a dividend stock to buy in February. They responded with automaker Ford Motors NYSE: Foil and gas logistics company Enterprise Products Partners NYSE: EPDand electricity transmission specialist National Grid NYSE: Here's a quick run-down as to why investors should take a look at these high-yield stocks.

The auto industry has been doing extremely well in recent years, posting record sales in andand automakers like Ford NYSE: F have taken full advantage of the favorable conditions to keep profits at high levels. Yet Ford stock has performed poorly. Investors anticipate that extremely strong sales conditions won't last forever, expecting a normal cyclical decline that will eventually put pressure on Ford's current high earnings. As a result, the stock now trades at less than eight times forward earnings estimates, and most investors expect that when final numbers for are available, earnings will be down by high single-digit percentages compared to Moreover, those following the stock are also looking for similar declines in However, one area where Ford still stands out is its dividend.

The stock currently yields 4. Low share prices make Ford's dividend extremely attractive. With the company paying out just a third of its current earnings in dividends, Ford has plenty of room to sustain and even grow its payout over time, even if a cyclical downturn does put pressure on its bottom line going forward. Tyler Crowe Enterprise Products Partners: If you started positions in oil and gas stocks inthen boy did you have a good year.

When Must I Buy a Stock to Get the Dividend? - TheStreet

Oil, natural gas, and their product derivatives were four of the five best-performing commodities last year, and energy stocks were the best-performing sector of any stock index.

One has to question, though, whether or not those companies can live up to those expectations again in if the oil price recovery stalls out. Even though the industry as a whole had a decent year, one company that curiously didn't see much of a gain was Enterprise Products When to buy stocks for dividend, one of the largest U.

Consistently bringing these kinds of assets online is the reason the company has been able to deliver 50 consecutive quarters of distribution growth. EPD Dividend data by YCharts. Since the company's stock had such a lukewarm performance inshares currently trade at a price to distributable cash flow of That's a pretty decent price for a stock that has proven over the years to be a reliable income investment.

The utility stock could soon send a runescape money making 1.7 free download mac special dividend your way. The past few months have been important for National Grid on several accounts, with two events standing out: The Massachusetts Department of Public Utilities issued a rate order some dolla sign shake your money maker 32 ago allowing an increase in what are the risks of buying put options distribution rates after a gap of six years.

That number could get even bigger if the company's other pending rate increase proposals are approved. That's a huge amount, and it could mean a hefty special dividend for investors in the next couple of months.

Moreover, the company follows a dividend policy of increasing its dividend at least in line with the U. RPI Retail Price Index to factor in inflation. That's another bonus for income investors. Overall, National Grid's dividend has stayed well above the 3. Dan Caplinger owns shares of Ford. Neha Chamaria has no position in any stocks mentioned. Tyler Crowe owns shares of Enterprise Products Partners.

when to buy stocks for dividend

The Motley Fool owns shares of and recommends Ford. The Motley Fool recommends Enterprise Products Partners and National Grid. The Motley Fool has a disclosure policy. Skip to main content The Motley Fool Fool.

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Tyler Crowe, Dan Caplinger, and Neha Chamaria. Jan 28, at 1: Enterprise Products Partners NYSE: Prev 1 2 3 4 Next. Motley Fool push notifications are finally here Allow push notifications to help you stay on top of Breaking investing news Earnings coverage Market movers Special offers and more Subscribe to notifications You can unsubscribe at any time.

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