Displaying items by tag: dividends

With market swings driven by lofty AI valuations and shifting expectations around future rate cuts, many investors are turning to dividend-paying stocks for steadier income and ballast. 

MPLX offers one of the most attractive income profiles in the large-cap MLP universe, supported by an 8%+ yield and continued EBITDA growth driven by major midstream expansion projects and Gulf Coast assets. 

ConocoPhillips delivers a blend of rising dividends, deep global resource optionality, and strong free cash flow growth powered by cost cuts, LNG expansion, and decades of high-quality drilling inventory.

 IBM rounds out the list with a long history of shareholder returns, consistent free cash flow, and renewed momentum from its transformation into a software- and consulting-led enterprise with emerging tailwinds from AI and quantum computing. 

Finsum: Resilient balance sheets, visible cash-flow pathways, and multi-year catalysts are good ways to select dividend players potential anchors for income-oriented portfolios.

Total return reflects both price appreciation and reinvested dividends, and over time, reinvesting those dividends can dramatically boost wealth. A comparison of two SPY investors from 2023 to 2025 shows that reinvesting dividends produced a 10.12% annualized return versus just 8.14% without reinvestment. 

While that difference seems small, compounding turns $10,000 into $223,691 over decades—versus only $124,424 for the non-reinvestor. Dividend growth accelerates this compounding effect, as rising payouts generate more shares, more dividends, and stronger long-term momentum. 

Dividend growth ETFs specifically target companies with consistent and sustainable dividend increases, setting them apart from high-yield or dividend-quality funds that use different selection criteria. 

Finsum: After screening for dividend growth opportunities, low costs, strong liquidity, and meaningful scale are some of the most important factors

High-yield dividend opportunities are harder to find in today’s market, but Realty Income, Healthpeak Properties, and Pfizer all stand out with payouts above 5%. 

1. Realty Income, a net lease REIT, offers a 5.5% yield and decades of consistent growth, supported by a vast property portfolio and international expansion potential. 
2. Healthpeak Properties, which merged with Physicians Realty last year, now provides a 6.8% yield as demand for lab space stabilizes and medical office buildings strengthen its base.
3. Pfizer shares have fallen about 60% since their pandemic peak, but the company has raised its dividend for 16 consecutive years and now yields 6.9%. While looming patent cliffs pose risks, Pfizer has invested heavily in acquisitions that could add $20 billion in annual sales by 2030. 

Finsum: Collectively, these three dividend payers offer compelling income opportunities with the potential for steady long-term growth.

After bottoming in April, the stock market has staged an impressive rebound, but Stifel strategist Barry Bannister warns the rally may not last due to stretched valuations. He predicts the S&P 500 could fall as much as 15% to 5,500 but advises investors to stay in the market with a more defensive stance. 

Bannister highlights high-yield dividend stocks as a classic hedge, offering steady income and stability in uncertain conditions. Ellington Financial stands out with an 11.5% yield supported by strong earnings and diversified mortgage-backed investments. 

Meanwhile, Dorian LPG, a global liquefied petroleum gas carrier, offers an 8% yield with analyst support despite recent earnings volatility. 

Finsum: Dividend stocks exemplify how income-focused strategies can help investors weather potential downturns while still capturing meaningful returns.

Dividend ETFs are an excellent way to generate passive income, as they typically hold portfolios of income-generating investments, allowing investors to avoid active portfolio management. 

• The Schwab U.S. Dividend Equity ETF (SCHD) offers exposure to 100 high-yielding, dividend-paying stocks with strong financials, boasting a 3.6% yield that surpasses the S&P 500’s average. 
• The JPMorgan Equity Premium Income ETF (JEPI) combines a defensive equity portfolio with an options overlay strategy, delivering a remarkable 8% yield driven by monthly income distributions and market volatility. 
• Meanwhile, the Vanguard Real Estate ETF (VNQ) provides effortless access to the commercial real estate market by investing in over 150 REITs, such as Prologis, which offers a 3.5% yield and impressive dividend growth.

These ETFs offer a diverse range of income opportunities, from dividend-focused equity to real estate and innovative option strategies. Their reliable and growing yields make them ideal choices for anyone seeking consistent passive income. 

Finsum: Dividend ETFs By investing in dividend ETFs, you can enjoy both steady cash flow and long-term financial growth.