Dividend Growth Investor

6 High Yielding Companies Boosting Distributions

I actually mutliplied the latest distribution by 4. I doubt that AGNC would maintain a 1.50 dividend/quarter, since I believe 1/5th of that was a one time gain.


On Jun 30 01:05 AM THofler wrote:

> I took AGNC's just declared dividend & added it to the last 3
> paid dividends. Today's (Monday) yield is 19.2%. Huge, but not quite
> as crazy as 25.4%.

6 High Yielding Companies Boosting Distributions

Alan,

I was mainly complaining against the volatility in dividends and their not being smooth. PSEC has a pretty smooth and non-volatile dividend payment. HTS and AGNC do not have a long enough history of paying out a distribution, but based off the data I have, it is volatile. It's true that REITs and BDC have to pay out almost all of their earnings. But if the earnings and their cash flows are volatile, then your dividend income form them would be subject to volatility, right?
Some investors are fine with that, as the high current yield provides some buffer. I personally like companies with a smooth and steady dividend stream. It makes my budgeting much easier.

The 'Sell After Dividend Cut/Freeze' Rule, With Exceptions

D4L,

Actually a dividend freeze might not be a bad thing. You shouldn’t really adjust your portfolio strategy based to follow the past market action too closely.
In the past stocks like WYE or K have frozen their dividends, but then resumed their payments. Furthermore what happens if a company freezes its quarterly dividends, and 5 quarters later it increases the dividends again? On an annual basis your dividend income from the stock could still be increasing.
Try researching dividend freezers over the past decade or two and only then determine if you should sell after a dividend freeze or not.

Best Regards,

Dividend Growth Investor

Dividend Yields Soar

Unfortunately the highest yielding stock lists these days contain stocks with a higher risk of cutting their payment. In this difficult environment, no one could tell you if any financial company will keep its dividend payment stable. Maybe that's why dividend investors need to be diversified across many sectors and not chase yield blindly.
I really hope ACAS could keep paying its rich dividend. But as the stock goes lower it seems to me that raising capital through share offers will be pretty expensive in the future..