In
UK stock market, investors tend to trade in such dividend paying stocks
who have consistent dividend growth and a long dividend history of
paying out dividends to their shareholders. In-short, people prefer to
trade among reliable stocks that can provide them an healthy dividend
amount.reliable companies always earn a pretty consistent amount as
profit. Reliable dividend is a relative terms
rather than being an absolute term because you can't say surely that
dividend from a reliable company won't be cut or suspended.
During
the financial crisis many of the safe companies that were thought to be
safe (bank) turned out suddenly so unsafe as many of them suspended or
cut their dividend payments from shareholders.
First
Thing Which one should look for is the unbroken record of dividend
payments in the past.see a unbroken record of dividend payments over at
least a decade may be a high benchmark for many companies but it's
necessary to look for also.
If
you have got a company who missed the dividend payout for a single year
then it should not be added to a high yield, low risk portfolio.
Dividend investing is much like value investing and it's not all about
trading from one company to another, selling a stock and buying another
stocks with which you are comparatively less familiar just to earn
dividend in the next 10 minutes.It should be adopted as a long term
strategy to earn profit each year and to multiply that profit by a
constant factor year by year you should have a proof that company can
give you dividends for the each year of next 10 years and it is 100%
possible when company has done this in past.
For
Passive investors, growth in earnings and dividends is not that much
big deal because it's always advised to dividend investors to look into
FTSE Top indices like ftse 100, ftse 250 and ftse 350 for all kind of
dividend possibilities. Usually, an investor who invests in Ftse 100
dividend paying stocks, usually gets dividend yield of 2-3% on an
average. However, it is also notable here that looking into ftse stocks
can be also problematic as we all are aware of the fact that mostly
companies in ftse indices are well established and hence they can't give
you a sudden dividend hike of 5% from 2%.
Such
companies have got their position already so the chances of growing
business and profit becomes less and lesser as company moves along the
ftse charts. Instead of this a smaller company operating in Mid cap
region in LSE can give you much hike in your income as it has all sides
open to expand it's business and there is no nearby expansion limit,
beyond which company can not grow. So it's always a great idea to look
Ftse stock indices for choosing reliable, constant dividend growth
giving dividend stocks while you can choose mid-cap stocks for getting
high dividend yield returns. If you have 15 place in your stock
portfolio. You should have 7-8 stocks from reliable dividend payout
category as without these, life can be problematic sometimes 4-5 stocks
should be from high dividend yield category(from mid-cap region).
Another
Important tactic can be looking into 52 week Hi/low data as I feels
range should be as small as possible as a small gap between 52 week high
and low values clearly indicates that stock price is not much
fluctuating and this one is a good sign as it will save you from buying
overvalued stocks from the FTSE stock market.
Resource: Get dividend data for all the FTSE 100,
FTSE 350 and other stocks listed in LSE. Get Dividend Data like
important dividend dates (Ex-dividend date, Record date, Payment date,
Announcement date) Dividend Yield, Yield%, 52 week High/Low rankings,
dividend growth rate, dividend history, etc by Dividend Investor UK. With our Tracker Tool
you can track your favourite UK dividend stocks which fit into your
custom criteria. Also, you can screen from thousands of best dividend
paying stocks in London stocks Market from Screener Tool.
Get email alert for any new dividend announcements from FTSE Dividend
Stocks like new dividend announcements, payout increments, change in
Yield%, Ex-dividend alert etc via our ealert Tool.
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