3 Great Dividend Stocks Whose Payouts Could Double
What's better than a $2 dividend payout? A $4 dividend payout!
Of course, it's more helpful to think in terms of dividend yields, which compare a company's payout to its recent share price. A $50 stock paying an annual dividend of $2 (typically in quarterly installments of $0.50) has a dividend yield of 4% -- $2 divided by $50 is 0.04, or 4%. A $4 dividend is twice as nice, and it would represent an 8% yield for a $50 stock.
Dividend-paying stocks are well worth considering for your long-term portfolio because they offer two ways to profit: From share-price appreciation and from dividends -- which themselves tend to be increased over time.
Source Fool.com