CAG - April's 5 Dividend Growth Stocks With 4.67%+ Yields
2024-04-16 21:21:40 ET
Summary
- Dividend growth stocks can provide reliable cash flows and help to build long-term wealth for income investors.
- Every month, we look at screening dividend stocks based on safety, growth, and consistency, which can help identify worthwhile investments.
- We look at a list of 25 of the top yielding based on these metrics, then take a quick look at the 5 of these top positions.
Written by Nick Ackerman.
For some background on this monthly publication, here is my view on dividend growth stocks :
April's 5 Dividend Growth Stocks With 4.67%+ Yields
Dividend growth stocks aren't always the most exciting investments out there. They often aren't grabbing the headlines, and they aren't the stocks running up hundreds of percentages in a year. In fact, they are often some of the least exciting stocks. And that is precisely their strongest selling point. With such a vast world of dividend growth stocks available out there, it is important to screen through to see if there are any worthwhile investments to explore.
They are stocks that provide growing wealth over time to income investors. Dividend growers are often larger (not always), more financially stable companies that can pay out reliable cash flows to investors. Some are slower growers than others. Some are going to be cyclical that require a strong economy. Some are going to be secular, which doesn't generally rely on a more robust economy.
Dividend growth can promote share price appreciation. Of course, that is if these companies are growing their earnings to support such dividend growth in the first place. Trust me. There are yield traps out there - I've owned a few that I'm not particularly proud of.
I like to think of investing in dividend stocks as a perpetual loan of sorts. Essentially, every dividend is a repayment of your original capital. Eventually, holding long enough, you have the position "paid off." It is all returned back into your pocket from that point forward.
All of this being said, it is important to understand my approach to dividend stocks and why screening dividend stocks can be important for income investors. As with any initial screening, this is just an initial dive - more due diligence would be necessary before pulling the trigger.