SashkinwIt pays to think like a business owner when it comes to investing in stocks. Some entrepreneurs will start a business with the end goal of selling it for a high price, much like investing in growth stocks like NVIDIA (NVDA) today. Most successful entrepreneurs tend to be keenly aware of cash flows and getting paid from the business in return for their efforts, much like investing in value stocks that throw off decent cash flow through dividends. Entrepreneurs/investors who focus on cashflows ten ...

While traders are naturally attracted to high-growth stocks that deliver impressive returns, savvy investors prefer dividend stocks. Growth stocks can be highly rewarding if picked correctly, but they also carry greater risk. Focusing solely on growth means a portfolio may have vulnerabilities if market conditions change unexpectedly. Therefore, buying dividend stocks as part of an overall trading strategy is prudent. It provides more stability and reliable returns on investment.Dividend stocks can perform ...

porcorex Before I begin this article, I would like to clarify that I'm writing it from the perspective of a total return-oriented value investor who focuses on the high-yield sector. As I detailed in a recent article, I believe that it is one of the easiest sectors to consistently win in by pursuing a highly concentrated, actively managed investing strategy. That said, for investors who purely care about generating passive income from quality stocks and do not like to trade much, especially for the sake of ...

Investors should never chase yield. Buying a dividend stock simply because it offers significantly higher-than-average yields will only set you up for problems. That’s because high-yield stocks often have problems. You can see why this is by looking at how yield is calculated.To find a dividend stock’s yield, you divide the amount of dividends per share a company pays by the stock’s price per share. So, if a stock’s price falls the yield rises. And of course, if a stock’s price is falling there could be som ...

Kasia75/iStock via Getty Images Ares Capital (NASDAQ:ARCC), a very large business development corporation ('BDC'), continues to report stellar earnings when compared to the size of the dividend. We publish extensively about Ares, in large part because this is by far our largest BDC holding. Ares, in a simple description, thrives on two market conditions, demand strength, or the economy and interest rates. The company employs a lot of floating rate loans with spreads tending to increase under higher rates. I ...

RomoloTavani The two best publicly traded business development companies based on long-term total return performance are Capital Southwest (CSWC) and Main Street Capital (MAIN). As you can see in the chart below, they have both generated enormous long-term total returns that completely leave the S&P 500 (SPY) and the broader BDC sector (BIZD) in the dust. Data by YCharts We previously discussed CSWC's strengths here and MAIN's strengths here. In this article, we will discuss what makes them such effective l ...

Vertigo3d Buying blue chip stocks can be a path to attaining wealth, but it can also come with plenty of pitfalls. That’s why it’s important to set a distinction between the company and its stocks. For example, high-flying winners of today like Nvidia (NVDA) are indeed great companies, but only for those who believe that the stock is deserving of the many multiples of earnings that it currently trades at. For more conservative income investors, buying blue chips that also pay a meaningful dividend and a ...

Traders work on the floor of the New York Stock Exchange during morning trading on May 17, 2024 in New York City.A favorable consumer price index report for April lifted investors' hopes for rate cuts from the Federal Reserve – and that environment could prove favorable for dividend-paying stocks.A lower interest rate environment makes dividend payers more compelling to income investors, especially because those stocks would be offering competitive yields versus those of Treasurys.Recent results reported by ...

MAXIM ZHURAVLEV/iStock via Getty Images Co-authored by Treading Softly. Amongst the pantheon of gods, demigods, and their various children throughout Greek mythology, two of the gods are rarely seen together. One is the god who we often attribute to the sun, and the other is the god of war. Apollo and Ares have a unique relationship, only really appearing in a few myths together, and otherwise being completely apart from each other, but playing important roles, nonetheless. When it comes to the market, ...

High-yield dividend stocks are particularly noteworthy in income investing. Seven stocks, all with yields over 7%, may spark rapid expansion in various industries.The first one is a massive real estate company specializing in cannabis operators, and it has a portfolio that spans many states and more than a hundred locations. The second one then becomes a benchmark for asset management. It has a constant net income and has moved toward safe first-lien investments. The third is a major player in consumer stap ...