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Tag: income investing

Income Investing With Low Payout Ratios

Income Investing With Low Payout Ratios

Dividends are the bread and butter of investing. If you don’t have dividend stocks in your portfolio, you’re holding yourself back. According to credit rating agency Standard and Poor’s, over the last 80 years dividends have been responsible for 44% of S&P 500 returns. Between 1929 and 2012,  2012, an investment in the S&P 500 would have returned 5.2% per annum excluding income but 9.4% including dividend distributions. When you compound the additional 4.2% of extra returns over the long term,…

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Should You Buy A Company After A Dividend Cut?

Should You Buy A Company After A Dividend Cut?

First published at ValueWalk.com Should you buy a company after it has cut its dividend? That’s the question Morgan Stanley’s analysts have tried to answer in a European Equity Strategy research note sent to clients today and a reviewed by ValueWalk. Morgan’s research has been prompted by renewed investor interest in dividend cuts. Against a depressed earnings base, the market’s dividend payout level looks high in a historical context and the median stock’s payout ratio is close to a 20-year…

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The High Dividend Yield Advantage

The High Dividend Yield Advantage

The evidence seems to suggest that by buying the highest yielding stocks you’re chances of outperforming the wider market are significantly improved. However, the evidence suggests that it’s not dividend yield, but dividend cover that is the key factor investors need to look out for when hunting for the best long-term dividend plays. In an equity research paper entitled High Yield, Low Payout, Credit Suisse Group AG (ADR) (NYSE:CS) analysts Pankaj N. Patel, Souheang Yao and Heath Barefoot found that highest yield stocks…

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