Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest, but they also serve as powerful tools to align a company's management's priorities with its shareholders'.
This alignment comes because many companies offer their leadership some form of stock-based compensation. Thanks to a solid, supported, and generally rising dividend, that leadership has an incentive to hold on to the company's stock for the long haul. After all, the dividend can continue to reward them for their efforts long after they're done directly working for the company.
With that in mind, smart investors looking for dividends don't just focus on the company's current yield, but also on factors that show a commitment to maintaining and boosting that dividend over time. These two dividend stocks look like they fit that bill well enough to be worth considering as potential investments to double up on right now: Genuine Parts (GPC -0.17%) is perhaps best known as the company behind the NAPA Auto Parts chain. That's a particularly useful economic niche to be a part of, as auto parts tend to remain in demand during weak economies. McDonald's (MCD -0.03%) is perhaps best known as a fast food burger flipper. Despite that reputation, savvy investors often think of it as a real estate mogul that happens to sell hamburgers.
Source: Motley Fool
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Posted by D4L | Friday, April 19, 2024 | ArticleLinks | 0 comments »________________________________________________________________
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