Buy These 4 Stocks For a Consistent Dividend Income
Zacks Investment Research | Jun 24, 2021 09:20PM ET
Investing in dividend stocks is one of the most effective ways to cushion your investment portfolio from market volatility. These stocks provide a stable stream of passive income and are favorite for investors who want to build a steady retirement corpus.
Dividend-paying stocks generally represent stable companies with an established business. These organizations reward their shareholders in two ways, firstly, by stock price appreciation and secondly, through profit sharing, that is, via dividend. These dividends can be used for reinvestment, thereby enhancing one’s investment portfolio.
However, blindly choosing dividend stocks won’t serve the purpose as the payout can be discontinued if the company runs into financial trouble. Thus it is paramount to judiciously pick only those companies that have the resilience to withstand the economic uncertainties and are consistent in making dividend payments even amid crisis.
Although a company’s dividend history gives investors a fair enough idea about its economic health, it doesn’t guarantee a secure future. To be safe and sure, you have to cherry-pick high-growth companies that with convincingly robust revenue and earnings growth and a favorable dividend payout ratio (less than 60% is preferred).
Here we pick four stocks that promises a passive income:
A Diversified Player/h3
3M Company (NYSE:MMM) Zacks Investment Research
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