Income stocks are considered to be good investment options as they generate a secure ongoing stream of regular income for the duration that the stock is held. Hence, such stocks can be an excellent option for risk-averse, long-term investors.
Investors often look for quick money-making alternatives by investing in stocks and achieving fast capital appreciation through increases in share prices. However, the risks involved in the selection process - unexpected stock price declines, market selloffs and elevated tax costs on short-term investments - are often overlooked.
Dividend investing is prudent as dividends are a less risky component of total return than capital appreciation. Also, dividend stocks are historically less volatile than non-dividend stocks. Moreover, they reflect a company's solid financial structure and strong fundamentals.
Whether it's an up market or a down market, there's always a place for dividend investing. Here's why: The yields on dividend stocks rise when their share prices go down.
That's an opportunity to chase extra yield. On the flip side, if the market is escalating upwards - that's obviously good for all equities. Hence, it can be easily said that dividend-paying stocks are always appropriate for long-term investors.
Attached I've compiled a couple of dividend stocks that might be interesting to buy and hold for the next year. All stocks offer a dividend yield of minimum 3% and have a steady dividend growth rate of above 5% in the last five years.
These are the results...
Carlyle Group -- Yield: 14.83%
Carlyle Group (NASDAQ:CG) employs 1,700 people, generates revenue of $3,006.20 million and has a net income of $400.10 million. The current market capitalization stands at $4.93 billion.Carlyle Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $149.40 million. The EBITDA margin is 4.97% (the operating margin is -15.37% and the net profit margin 13.31%).
Financials: The total debt represents 56.79% of Carlyle Group assets and the total debt in relation to the equity amounts to 3,537.71%. Due to the financial situation, a return on equity of -2.97% was realized by Carlyle Group.
Twelve trailing months earnings per share reached a value of $0.12. Last fiscal year, Carlyle Group paid $3.39 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 126.09, the P/S ratio is 1.64 and the P/B ratio is finally 2.35. The dividend yield amounts to 14.83%.
Stock Charts:
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| Long-Term Stock Price Chart of Carlyle Group (CG) |
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| Long-Term Dividend Payment History of Carlyle Group (CG) |
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| Long-Term Dividend Yield History of Carlyle Group (CG) |
Rio Tinto -- Yield: 3.90%
Rio Tinto (NYSE:RIO) employs 54,888 people, generates revenue of $34,829.00 million and has a net income of $-1,719.00 million. The current market capitalization stands at $72.77 billion.Rio Tinto’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11,950.00 million. The EBITDA margin is 34.31% (the operating margin is 10.38% and the net profit margin -4.94%).
Financials: The total debt represents 25.45% of Rio Tinto assets and the total debt in relation to the equity amounts to 62.38%. Due to the financial situation, a return on equity of -2.07% was realized by Rio Tinto.
Twelve trailing months earnings per share reached a value of $0.03. Last fiscal year, Rio Tinto paid $2.15 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 1,526.69, the P/S ratio is 2.05 and the P/B ratio is finally 1.87. The dividend yield amounts to 3.90%.
Stock Charts:
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| Long-Term Stock Price Chart of Rio Tinto (RIO) |
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| Long-Term Dividend Payment History of Rio Tinto (RIO) |
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| Long-Term Dividend Yield History of Rio Tinto (RIO) |
Innophos -- Yield: 3.63%
Innophos (NASDAQ:IPHS) employs 1,387 people, generates revenue of $789.15 million and has a net income of $26.35 million. The current market capitalization stands at $1.02 billion.Innophos’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $90.35 million. The EBITDA margin is 11.45% (the operating margin is 6.53% and the net profit margin 3.34%).
Financials: The total debt represents 31.68% of Innophos assets and the total debt in relation to the equity amounts to 63.51%. Due to the financial situation, a return on equity of 6.60% was realized by Innophos.
Twelve trailing months earnings per share reached a value of $1.72. Last fiscal year, Innophos paid $1.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 30.81, the P/S ratio is 1.30 and the P/B ratio is finally 3.06. The dividend yield amounts to 3.63%.
Stock Charts:
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| Long-Term Stock Price Chart of Innophos (IPHS) |
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| Long-Term Dividend Payment History of Innophos (IPHS) |
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| Long-Term Dividend Yield History of Innophos (IPHS) |
Big 5 Sporting Goods -- Yield: 3.41%
Big 5 Sporting Goods (NASDAQ:BGFV) employs 9,000 people, generates revenue of $1,029.10 million and has a net income of $15.30 million. The current market capitalization stands at $385.36 million.Big 5 Sporting Goods’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $48.15 million. The EBITDA margin is 4.68% (the operating margin is 2.58% and the net profit margin 1.49%).
Financials: The total debt represents 13.18% of Big 5 Sporting Goods assets and the total debt in relation to the equity amounts to 29.51%. Due to the financial situation, a return on equity of 7.77% was realized by Big 5 Sporting Goods.
Twelve trailing months earnings per share reached a value of $0.62. Last fiscal year, Big 5 Sporting Goods paid $0.40 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.44, the P/S ratio is 0.37 and the P/B ratio is finally 1.94. The dividend yield amounts to 3.41%.
Stock Charts:
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| Long-Term Stock Price Chart of Big 5 Sporting Goods (BGFV) |
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| Long-Term Dividend Payment History of Big 5 Sporting Goods (BGFV) |
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| Long-Term Dividend Yield History of Big 5 Sporting Goods (BGFV) |
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