6 Dividend Stocks to Buy Yielding 5% or More
These six dividend stocks are very attractive because they have yields of over 5%. But they are also good investments, as the companies earn more on a monthly yield basis than the dividends they pay out to shareholders. This latter point is very important. Often business development companies, which are a mix of a lender to small companies and a private equity firm, pay dividends that they cannot afford. In fact, they end up calling these “distributions” rather than dividends, since the amount that they can’t afford is actually a return of capital (ROC). In the end, high-yield ROC stocks tend to fall in price. This is because you can’t fool the market. It knows that a company’s cash flow or weighted-average yield does not cover the dividend payments. The stocks on our list don’t have this problem, and this makes their stock price performance more secure. 7 Nasdaq Stocks to Buy and Hold Forever Let’s dive in and look at these dividend stocks. GLAD Gladstone Capital $10.40 PSEC Prospect Capital $7.21 NMFC New Mountain Finance $12.17 VZ Verizon $49.64 T ATT $19.90 BCE BCE $51.49 Gladstone Capital (GLAD) Source: Shutterstock Dividend Yield: 7.3% Gladstone Capital (NASDAQ: GLAD ) is a business development corporation (BDC), which is sort of like a bank that makes loans to companies.
6 Dividend Stocks to Buy Yielding 5% or More
These six dividend stocks are very attractive because they have yields of over 5%. But they are also good investments, as the companies earn more on a monthly yield basis than the dividends they pay out to shareholders. This latter point is very important. Often business development companies, which are a mix of a lender to small companies and a private equity firm, pay dividends that they cannot afford. In fact, they end up calling these “distributions” rather than dividends, since the amount that they can’t afford is actually a return of capital (ROC). In the end, high-yield ROC stocks tend to fall in price. This is because you can’t fool the market. It knows that a company’s cash flow or weighted-average yield does not cover the dividend payments. The stocks on our list don’t have this problem, and this makes their stock price performance more secure. 7 Nasdaq Stocks to Buy and Hold Forever Let’s dive in and look at these dividend stocks. GLAD Gladstone Capital $10.40 PSEC Prospect Capital $7.21 NMFC New Mountain Finance $12.17 VZ Verizon $49.64 T ATT $19.90 BCE BCE $51.49 Gladstone Capital (GLAD) Source: Shutterstock Dividend Yield: 7.3% Gladstone Capital (NASDAQ: GLAD ) is a business development corporation (BDC), which is sort of like a bank that makes loans to companies.