Coca-Cola Yields 2.3% and Nike Yields 4.4%. Here’s Why Only 1 of These High-Yield Dividend Stocks Is a Buy This October.
According to S&P Global‘s Global Market Intelligence, more than 80% of the companies in the S&P 500 index pay a dividend. Because the opportunity set is large, income-focused investing is a popular strategy among the retail crowd.
It makes sense why. Investing in growth stocks means betting on future earnings that may or may not materialize. Value investing, on the other hand, relies on the market eventually agreeing with your assessment of a particular bargain opportunity. There is uncertainty with these strategies.
Dividends provide a cash inflow to investors in up and down markets. And if you reinvest these distributions, it can boost the total return.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.