Investors love dividend stocks for a few reasons. First and foremost, that sweet dividend income. After all, investors like when an investment returns money in the form of dividends, and has the potential to appreciate in price. That growth potential is usually the secondary consideration. Stocks that possess both characteristics are true winners. These stocks offer attractive dividend yields as well as payout ratios that leave sufficient income to be reinvested in the company. Thus, they have the necessary resources to grow. They’ll also necessarily have strong catalysts for growth.
Here are 6 dividend stocks to buy for yield and growth: AbbVie (NYSE:ABBV), Carlisle Company (NYSE:CSL), Skyworks Solutions (NASDAQ:SWKS), Coca-Cola (NYSE:KO), Automatic Data Processing (NASDAQ:ADP) and Johnson & Johnson (NYSE:JNJ). Excessive dividend payout ratios stifle the long-term growth of given stocks because too much of earnings is being paid to shareholders. Thus. too little capital is being reinvested into the company. Therefore growth lags. So, there is a fine line to tread for investors seeking dividend yield and growth. Yet, that is exactly what the stocks below offer.
Source: InvestorPlace
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Posted by D4L | Tuesday, October 20, 2020 | ArticleLinks | 0 comments »- Never Fall In Love With A Stock
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