As an investor, you're looking for a sufficient potential return on stocks to justify the risks you take by investing. In the brief video below, Fool contributor Chuck Saletta shares three reasons why you should think about dividends as an important part of that return.
Here are three examples he'll describe:
- Annaly Capital Management (NYSE:NLY) showcases the benefit of dividends as a direct cash reward for the risks investors take in owning a company's stock.
- Kinder Morgan (NYSE:KMI) illustrates how dividends can enforce discipline on a company's leadership.
- General Electric (NYSE:GE) provides an example of how dividends often tell a clearer story of what's really going on than you'll hear from a company's management.
Who doesn't love a dividend?
One of the secrets that few finance professionals will reveal is that dividend stocks as a group handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but a small handful of the most important ones are mentioned in this video. Still, knowing this is only half the battle.
The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.
Chuck Saletta owns shares of Annaly Capital Management, General Electric Company, and Kinder Morgan. The Motley Fool recommends Kinder Morgan. The Motley Fool owns shares of General Electric Company and Kinder Morgan. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.