#dividend-growth

#dividend-growth

When it comes to picking dividend stocks, you not only want a firm that can support a generous payout, but one that can grow it at a fairly predictable rate over extended periods of time. Indeed, when thinking about dividend stocks with a long-term horizon in mind, I think it makes more sense to focus on the growth profile and the shareholder-return policy than just how large the upfront yield is.

Dividend investing is tricky business. On the one hand, investors looking for yield are enticed to consider the highest-yielding names in a given group. That said, as a stock's overall dividend yield rises, its risk profile inherently rises. Any time an investor sees a company with a double-digit yield or something outside of what most would consider to be a "normal" range, it's probably a company that's at risk of a dividend cut or further downside. That's what the market is saying at least.

Passive income investors can enhance their yield using covered call ETFs, balancing risk and income while considering growth potential, particularly for younger investors.

Jim Cramer identifies Target as a value stock based on its current low valuation compared to historical standards and the S&P 500, despite ongoing challenges.

UnitedHealth Group's stock has dropped over 50% in 2025 due to an earnings miss, a DOJ investigation, and CEO resignation, raising concerns for investors.

For income-focused investors, companies with a long history of dividend payments and increases, like HP, Altria, and Terreno Realty, provide stability and appeal.