In the past, nearly all stocks paid dividends. For a variety of reasons, however, dividends have become less common. Many companies are putting earnings back into their businesses or use other methods, such as share buybacks, to return money to investors.
For those who want safety and security in their stock portfolio, dividend-paying stocks remain attractive. Over time, dividend payers have historically outperformed other investments, with quite a bit less volatility -- and that's a win-win for investors.
Our Motley Fool Income Investor newsletter service focuses on dividend-paying investments. We seek companies with certain characteristics, including:
- A minimum 3% current or forward dividend yield.
- A reliable dividend track record.
- Reasonable payout ratios.
- Sustainable earnings growth.
- A competitive advantage that will hold up.
- A proven management team.
Each Motley Fool Income Investor monthly newsletter hands you:
- A New Dividend-Paying Stock Recommendation: The most opportunistic income opportunity you'll find anywhere in the investing world each and every month of the year.
- Timely Analysis of Our "Buy First" Stocks: There are 5 "buy first" stocks on our scorecard -- investments we advise every member to purchase because they're stocks we're confident we'll do well to own over the next decade -- and beyond! Each month, we update you with their latest news or earnings.
- Many Other Extras: Most months we'll invite fellow analysts to share stocks they like -- or unique strategies they're implementing in their portfolios. And it's all part of your member experience.
To see what The Motley Fool's Income Investor is recommending to their readers now, take a look at Income Investor today.
You can also find out more about dividend investing from these articles:
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