Wednesday 8 October 2014

Insight: Dividend Stocks Dow Jones

There are 2 ways of gaining profit on stocks, either by the price of the stock or by dividends. Often, when there is economic uncertainty, investors tend to buy more of high dividend yielding stocks. Since the IMF reduced their economic growth forecast and stock markets are more volatile recently, it is time to shed some light on high dividend yielding stocks noted on the Dow Jones index. One of the highest dividend yielding stocks on the Dow Jones index is AT&T (NYSE:T) . AT&T offers dividends resulting in a yearly 5.21% dividend yield. Moreover, the yearly dividend yield is also growing slightly. Except for the high dividend yield, the AT&T stock price remains fairly constant and has stable fundamentals, making it a low-risk bet. Then there is General Electric (NYSE:GE), which will give you a yearly dividend yield of 3.55% (compared to 2.36% average in the industry). The high dividend yield of this stock comes with a price: don't expect the dividend payments to growth in the near future, even when General Electrics earnings grow. Since the stock price of General Electric is not growing very fast, but steadily, General Electric may be considered a nice dividend stock due to its regular and constant dividend payments. Finally, Chevron (NYSE:CVX) is also an interesting dividend stock. It yields 3.69% each year on dividend, but the more interesting fact lies in the growth of its dividend. Where Chevron paid $0.90 in May 2013, it pays $1.07 in September 2014 (an increase of 18.89%). The dividend payments are expected to keep on growing (possibly at a slightly lower rate than 18.89%, but still at a substantial growth rate). In conclusion, investors seeking stable dividend yielding stocks may find AT&T, General Electric & Chevron nice stocks to invest in.

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