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Understanding the best yielding dividend stocks

If you are looking to invest in high yielding dividend stocks of companies like Microsoft, ExxonMobil, AT&T, Verizon, Apple, Texas Instruments or Shell Oil, then do so right away, because they are safe, less risky than others and provide super-high dividend yields. Selling your low yield stocks and investing purely in the ones that provide increased dividends regularly in consecutive years, are stocks of companies in various industry sectors – services, healthcare, consumer goods, financial, utilities, industrial goods, telecom and so on. Master Limited Partnerships like the energy sector with oil and gas companies, Real Estate Investment Trusts like apartments, hotels, offices, storage, and others who lease out their properties to tenants, regulated investment companies and closed-end mutual funds are just a few examples of companies that give high yielding dividend stocks.

Understanding the best yielding dividend stocks

Dividend growth investing is an investment strategy that does two things simultaneously – provides capital appreciation and a steady income. So, investing in businesses that are capable of increasing their dividends prove that they are more stable and dependable, unlike others that perform well for short periods but are highly volatile. Increasing your income supply safely through high dividend stocks is a good option, especially appealing to investors who bank on these dividends in their retirement years. Ensure the companies you invest in have healthy and positive dividend safety scores.

Any stock with a dividend yield in excess of 4% is termed a high dividend stock.

Mature companies that do not have the need to infuse more capital into their businesses prefer to share their surplus cash with shareholders in the form of high paying dividends. There are some companies that, for tax purposes, necessarily have to redistribute their available funds to investors. There are still others who offer generous dividends by applying for debts and mortgages, and while this may work for a short time, is not sustainable in the long run.

There are benefits and risks in all types of dividend stocks. Diversity is the key here. Do your research, observe market movements, invest wisely and enjoy high yields from dividend stocks.

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