Generating consistent income is a wonderful way to grow your wealth. And one of the best ways to make consistent income is with dividends.
However, finding the right companies that can consistently pay you dividends every year isn't all that easy.
Unfortunately, you'll get companies that pay-out most of their profits in dividends. Eventually, they won't be able to sustain this. This happen... ››› more
The most common argument you hear from investors who aren't interested in dividends is that the company should be able to find something better to do with its cash than give it back to shareholders.
They say the funds should be used to grow the business either by investing in the business itself or by acquiring new ones.
These are valid points but here's where they are wrong…
Recomm... ››› more
When you invest in shares there are two things that can make you money - capital appreciation as the share price rises. And dividends putting hard cash in your pocket.
Most investors focus mostly on capital appreciation.
But the fact is dividends can make you massive returns.
If for instance you bought Adapt IT in 2009, you'd have paid 44c per share. Since then the company has paid out... ››› more
Investing for income is a wonderful thing.
Income is what gives you the freedom to enjoy your life.
Income supercharges your retirement savings.
More importantly, income is what you need to ensure you and your family live a comfortable life.
So what's really the best form of income?
Dividends are “rewards” you get for investing in stocks. And they're vital to... ››› more
It's Monday morning. The sun is peeping over the horizon, you're sipping on a cup of coffee waiting for seven ‘o clock to arrive. You need to hit the road.
You pull out of your driveway and watch the stream of cars head into the city. A smile drifts over your face because you're driving in the opposite direction. You're leaving town, hitting the open road. The ocean is ca... ››› more
Companies that pay huge dividends give your portfolio a certain level of protection and a steady flow of passive income.
This extra income stream is perfect for investors nearing retirement because it relieves some of the financial pressure and grows your retirement savings with very little effort. With a powerful dividend packed portfolio, you don't have to tap into your capital or savings... ››› more
If you've been holding Redefine Properties (RDF) shares, you have an important decision to make. You see, the company is paying a dividend of 41.70 cents for the six months ended 29 February 2016.
You need to choose if you want to receive the cash dividend or use the dividend to reinvest to buy more shares.
The biggest advantage of reinvesting your dividends is compounding
You accumulate... ››› more
I love receiving dividends but reinvesting dividends is not always the most cost effective way to invest it.
Let me explain...
When you only get paid out a couple of hundred or thousand rand in dividends, the brokerage costs of reinvesting that cash can eat away a large chunk of the money.
That's why some investors draw the cash and spend it. This isn't a wise move either.
So, today ... ››› more
There's a lot of uncertainty in the equity markets at the moment. The markets are choppy, up one day and down the next. This is evident when analysing the JSE.
With the level of uncertainty in the markets, dividend paying shares are great investments.
Richard Russell, writer of the Dow Theory Letters says, “A stock dividend is a true return on the investment. Everything else is hope and sp... ››› more
Your retirement isn't going to be cheap. Chances are you're going to have a couple of decades to enjoy it.
So if you're looking towards planning for retirement and want to invest on the stock market, what sort of stocks should you invest in?
Read on to find out…
The challenges of retirement
Funding your retirement will come down to your pension and financial assets you’v... ››› more
When you're an income investor, you want to know that your dividends are safe. But it can be difficult to work this out.
Some of the more common approaches to check dividends include calculating dividend cover. But is there another way to check?
Read on to find out…
Using distance-to-default to check dividends
The distance-to-default metric (which is also known as the ... ››› more
Dividends can account for a lot of the returns you see from your investments over the years. And high yielding stocks tend to make better long-term investments.
So how can you suss out a company's dividend before you invest?
Read on to find out more…
Weighing up dividends with dividend cover
You have to tread cautiously when investing in shares for their dividends. Just be... ››› more
If you're looking for good stocks to invest in, you should turn your attention to companies paying dividends.
Research shows that stocks with high dividend yields tend to better the performance of ones that don't over the long-term.
And if you're looking to add some offshore exposure to your portfolio, there are a number of stocks that fit the bill.
Let's take a closer look…
The m... ››› more
One of the main reasons why you choose to invest a stock is that you believe it'll go up in price over time.
If you're an income investor, another factor you may consider is the dividend the stock pays.
That's why, if a company cuts its dividend, you can be sure its share price will drop. Investors that were in the stock for the dividends will sell their shares.
For example: Take commodi... ››› more
If you're an income seeker, you're looking to invest in companies paying out solid dividends.
You don't want to invest in a company for its dividends, only for it to cut or suspend its dividend payment entirely.
So how can you increase the odds of buying a solid dividend payer?
Read on to find out…
How to work out a company’s cash flow
Looking at how much spare cash a compan... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.