We cover a lot of investing subjects here at Cabot, but we’ve always had a soft spot for dividends. They can generate income in retirement, help bolster your overall portfolio returns, or pay you to wait for an unloved turnaround stock to start attracting the market’s attention.
So to make it easier for readers to find some of our most comprehensive content, and to help dividend investors find what they’re looking for (even if they don’t know it yet), we thought we’d share our best dividend stocks articles.
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The following list is curated to identify the content that may be most helpful for dividend investors while also taking into account which articles are the most popular among our readers. So, without further ado here are …
Our 10 Best Dividend Stocks Articles
1. How Long Do You Have to Own a Stock to Get the Dividend?
This article is a good place to start for new dividend investors as it answers a pretty fundamental question about dividend investing. Namely, you know that you need to own a stock to collect the dividend it’ll be paying out sometime down the road, but for how long? And, for that matter, when do you have to buy it?
It touches on ex-dividend dates, the “dividend capture” strategy and why share prices move before dividends are even paid out.
2. Highest-Paying Dividend Stocks in the S&P 500
There won’t be any surprises with this post, which is regularly updated to identify the S&P 500 constituents that are offering the highest yields. You’ll find the top 10 highest-paying stocks ranked by yield, a business description, as well as relevant information for potential investors.
This post comes in handy because companies hike, lower and cut their dividends all the time, and a significant share price move can easily drop a stock’s yield and result in it getting booted from the list.
3. 10 Reasons to Own Monthly Dividend REITs
Most dividend investors expect to receive quarterly payouts from the companies they invest in, but did you know that some companies pay their shareholders every month? In a 401(k) or a taxable brokerage account, this may not make a huge difference to you, but if you’re relying on dividends for income, identifying monthly payers can help you smooth out your income stream.
This article takes a deep dive into that and the other reasons that monthly dividend stocks might make sense for your portfolio. Plus, dividend investing expert Tom Hutchinson shares his two favorite monthly dividend stocks.
4. 3 Stocks to Bank on the Aging Megatrend
This article is another gem from Tom Hutchinson (no surprise there) that talks about one of the emergent trends that’s shifting the American economy like a tectonic plate. Namely, the aging of the U.S. population. A record number of Baby Boomers are hitting retirement age every year, and that will fundamentally change how we live our lives.
Here, Tom discusses how much impact a megatrend like this can have, like its ability to override business cycles and short-term market movers. Then, he highlights his three favorite stocks to take advantage of what is likely to be a multi-year (if not multi-decade) transformation.
5. 10 Highest-Paying Dividend Stocks in the Dow
This is another one of our more popular posts for dividend investors. And in it, we discuss the highest-paying components of the Dow Jones Industrial Average. Like our article about the highest-paying stocks in the S&P 500, this article is also ranked by yield and offers summaries and business profiles of the entries.
This article is ranked a little lower on this list simply because the Dow has only 30 members, which rarely change, so you’re more likely to find the top 10 jockeying for position rather than getting changed out wholesale.
6. Coke vs. Pepsi Stock: Maybe You Can Beat the Real Thing
Unlike some of our prior entries that explain dividends or highlight specific dividend stocks, this article pits two all-time favorites head-to-head in a battle of carbonated beverage dividend stock supremacy.
In it, we break down each company’s fundamentals in a “Tale of the Tape” and then pick our favorite based on those fundamentals and each stock’s trading momentum. We may not settle the age-old question of Coke vs. Pepsi, but we do pick out a winner for your portfolio.
7. 2 Seemingly Identical Dividend-Paying Tobacco Stocks – Very Different Situations
This is another head-to-head breakdown but focusing on a vice of a different stripe. Tobacco stocks are long-time favorites of dividend investors for their ability to generate massive cash flows and set prices seemingly at will.
Unlike the previous article, which is more Friday Night Fights than Crossfire, this article features expert value investor Bruce Kaser’s analysis of two tobacco stocks that both offer solid yields for investors but whose balance sheets tell very different stories. If you’re invested in tobacco stocks, this one is a must-read.
8. Can You Still Own Bond ETFs When Interest Rates Are Rising?
Here, we get back to basics and answer a question that’s been on the minds of income investors for most of the last two years. We all know that fixed-income investments don’t like rising rates (yields and prices tend to move in inverse directions), but since we’re faced with rising rates, is there a safe way to hold positions in bond ETFs?
This article discusses interest rate risk and what it means for fixed-income investors, and then outlines a strategy that can help insulate your portfolio from volatile rates.
9. The Pros and Cons of DRIP Plans and DRIP Stocks
In an era of meme stocks, cryptocurrencies, and seemingly instant online trading, it may not seem like there’s still a place in your portfolio for an old-fashioned Dividend Reinvestment Plan. But for many investors, that’s simply not true.
This article highlights the pros and cons of Dividend Reinvestment Plans, why they may (or may not) be right for your portfolio, and offers a primer on dividend reinvesting and the power of compound interest for the uninitiated.
10. The Dividend Aristocrats ETF: Own the 66 Best Dividend Growers
The last entry on our list is another one from the venerable Tom Hutchinson, and it’s all about “Dividend Aristocrats,” a class of stocks identified by Standard & Poor’s that all have a 25-year history of paying (and sometimes hiking) dividends.
The name “Dividend Aristocrats” has practically become shorthand for long-term dividend payers that can help income investors maintain a steady paycheck in retirement. In this article, Tom explores the ETF built around this strategy, which stocks offer the highest yields, and which have shown the strongest performance.
Hopefully, this list can help introduce you to some fixtures of dividend investing, and if it’s already your forte, consider subscribing to Cabot Dividend Investor to get Tom Hutchinson’s best income-generating picks.
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