Dividends4Life: Why This Company Is a Top Dividend Stock for Investors’ Portfolios

Dividend Growth Stocks News

While cash flow can come from bond interest or interest from other types of investments, many income investors hone in on dividends. A dividend is the distribution of a company’s earnings paid out to shareholders; it’s often measured by its dividend yield, a metric that expresses a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Smucker (NYSE: SJM) is a Consumer Staples stock whose shares have jumped 15.73% so far this year. The food maker is currently shelling out a dividend of 88 cents per share, with a dividend yield of 3.25%, making it one of a number of dividend stocks that income investors can consider. This compares to the Food – Miscellaneous industry’s yield of 0.1% and the S&P 500’s yield of 1.88%. Taking a look at the company’s dividend growth, its current annualized dividend of $3.52 is up 5.7% from last year. In the past five years, Smucker has increased its annual dividend five times for an average annual increase of 7.62%

Source: InvestorPlace

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