Dividend Stocks: Equities With a Change Jar

Stocks can be sliced and diced any number of ways, but there’s one clear division that neophyte investors trying to save money should be aware of: dividend stocks versus non-dividend stocks. Dividend stocks assure you regular cash payouts relative to how many shares you own, and thus present an interesting savings opportunity.

What Kind of Dividend Stocks are Best (AKA the Safest)? The S&P 500 is comprised of 500 of the biggest companies by market cap on the American stock exchanges. Of those 500 companies, 416 pay a dividend. And of those 416, 11 companies pay out a dividend to stockholders of 5 percent or higher, and four pay 6 percent or higher – CenturyLink Inc. ($CTL); FirstEnergy Corp (FE); Frontier Communications Corporation (FTR); Windstream Corporation (WIN). Keep in mind, however, that large dividends come at the expense of profits: none of those companies have sported a YTD gain of over 20 percent, and CenturyLink and FirstEnergy have actual lost valuation on the year.

Source: Equities.com

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