Anyone who has spent time researching investment opportunities has more than likely run into the following disclaimer: past performance is no guarantee of future results. While it would be foolish to entirely ignore this timeless piece of advice, as humans, we are naturally drawn to analyzing the past in an effort to contemplate the future. Dividend investors especially have a lot to learn from analyzing historical dividend data and a stocks dividend history.
For starters, investors can gauge the state of the broad market by looking at the S&P 500 historical dividend yield; one way to utilize this sort of data is to focus on companies that are potentially undervalued at the time, as they happen to offer a distribution yield above that of the broad market.
Digging deeper, looking at an individual stock’s historical dividend payouts can give investors a good idea of emerging dividend trends, and it also provides insight into the company’s overall dividend philosophy. Ticker pages on Dividend.com make this sort of stock dividend history analysis relatively easy and straightforward; simply search for a ticker using the search box at the top of the page, and scroll down to the Dividend Yield & Stock Price History and Dividend Payout History sections for a visual representation of its historical dividends data. Premium members can easily download and export this data with a single click.
While most dividend-paying companies will always claim that they have no plans to reduce their dividends, the results can be quite different. The historical numbers, however, don’t lie. Simply put, companies that have a history of dividend cuts are more likely to make cuts in the future. The same holds true for companies with a history of increasing their dividends.
Stagnant dividend payouts is also unattractive to dividend-minded investors. In general, investors should look for stocks with industry-leading (but sustainable) dividend yields, with a solid history of increasing their dividends.
Being aware of a stock’s dividend history, like its historical dividend yield, and the company’s payout policy is important for a number of reasons; for starters, it may shed more light on how it will perform over the long-haul. There is extensive academic research that suggests companies with more favorable dividend policies tend to perform better during bull, as well as bear, markets. Consider the findings below from Ned Davis Research:
There are two important takeaways here. First, notice how dividend-paying stocks as a whole tend to outperform their non-dividend-paying counterparts over the long-haul. Next, and more importantly, notice how companies labeled as dividend growers tend to perform even better than those that simply pay out a distribution. This should serve as compelling evidence for income-focused investors as to why it’s important to consider historical dividends data when researching potential investment opportunities.
There are a number of resources at Dividend.com aimed at helping you make the most out of historical diviend data analysis. Please be sure to consider the following articles:
- Dividends in Focus – The Dow 30: this piece takes a look at the dividend history of another coveted benchmark, the Dow Jones Industrial Average, while also profiling the individual companies with the most impressive payout track records.
- 6 Signs of Unsustainable Dividend Yields: this is a great starting point when it comes to analyzing high-yield stocks; investors can use this piece to familiarize themselves with the differences between a bargain stock and a potential value trap.
To view Dividend.com’s Highly Recommended list of stocks, be sure to check out our Best Dividend Stocks List. The list features Dividend.com’s top-rated dividend stocks, geared toward traditional long-term, buy-and-hold investors. All stocks on this list are rated using Dividend.com’s proprietary Dividend Advantage Rating System – DARS™.
FAQs
Sites like CNBC, Morningstar, The Wall Street Journal, and Investopedia are all great resources available for researching dividend data. For example, on Investopedia's Markets Today page, you can use the stock search tool to enter the company name or ticker symbol that you're researching.
Is dividend.com worth it? ›
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What are the 5 highest dividend paying stocks? ›
Comparison Results
| Name | Price | Analyst Price Target |
|---|
| IBM International Business Machines | $166.50 | $182.31 (9.50% Upside) |
| CVX Chevron | $158.17 | $185.88 (17.52% Upside) |
| EOG EOG Resources | $129.84 | $147.63 (13.70% Upside) |
| ET Energy Transfer | $15.97 | $18.44 (15.47% Upside) |
5 more rowsDARS™ (Dividend Advantage Rating System) rates dividend stocks across five distinct criteria: relative strength, overall yield attractiveness, dividend reliability, dividend uptrend, and earnings growth. Dividend.com offers free content available to the general public as well as premium subscription service.
What is the best dividend website? ›
Popular Investor Websites for Dividend Paying Stocks
- Sharesight. ...
- Dividend.com. ...
- Gurufocus. ...
- Insider Monkey. ...
- TipRanks. ...
- Kiplinger. Total Visits as of January 2023: 5.1 million. ...
- Morningstar. Total Visits as of January 2023: 8.1 million. ...
- Benzinga. Total Visits as of January 2023: 19.1 million.
With the ability to automatically track dividends and see the impact of dividends on your returns, Sharesight is the best free dividend tracker for self-directed investors. As a comprehensive online portfolio tracking solution, Sharesight also has a range of powerful features that extend beyond dividend tracking.
What is the most reliable dividend stock? ›
15 Best Dividend Stocks to Buy for 2024
| Stock | Dividend yield |
|---|
| Coca-Cola Co. (KO) | 3.3% |
| Johnson & Johnson (JNJ) | 3.4% |
| Prologis Inc. (PLD) | 3.7% |
| Realty Income Corp. (O) | 5.9% |
11 more rowsApr 19, 2024
Some of the best dividend stocks include Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and AbbVie Inc (NYSE:ABBV) with impressive track records of dividend growth and strong balance sheets. In this article, we will further take a look at some of the best dividend stocks of all time.
Which is the best dividend-paying company? ›
List of Highest Dividend Paying Stocks In India 2024
| Company | Dividend Percentage % | Ex-Date |
|---|
| Hero Motocorp | 3750.00 (+ Special 1250.00) = 5000.00 | 21-02-2024 |
| Oracle Fin Serv | 4800.00 | 07-05-2024 |
| CRISIL | 2800.00 | 28-03-2024 |
| HUL | 2400.00 | 14-06-2024 |
18 more rowsThe Coca-Cola Company's ( KO ) dividend yield is 3.13%, which means that for every $100 invested in the company's stock, investors would receive $3.13 in dividends per year. The Coca-Cola Company's payout ratio is 73.72% which means that 73.72% of the company's earnings are paid out as dividends.
Dividends can be classified either as ordinary or qualified. Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates.
Who currently pays the highest dividends? ›
20 high-dividend stocks
| Company | Dividend Yield |
|---|
| Eagle Bancorp Inc (MD) (EGBN) | 9.68% |
| Civitas Resources Inc (CIVI) | 9.45% |
| Altria Group Inc. (MO) | 9.18% |
| CVR Energy Inc (CVI) | 9.17% |
17 more rows3 days ago
The Bottom Line
By investing in quality dividend stocks with rising payouts, both young and old investors can benefit from the stocks' compounding, and historically inflation-beating, distribution growth. All it takes is a little planning, and then investors can live off their dividend payment streams.
Can I spend my dividend money? ›
Investors who own dividend-paying stocks face the question of what to do with this cash. You have several options: Spend it. Use the cash to supplement your income.
Is there a catch to dividend stocks? ›
However, they typically offer lower returns than stocks. Dividend-paying stocks have the potential for income through dividends and capital appreciation, but they come with higher volatility and market risk. The choice between the two depends on your risk tolerance, investment goals, and time horizon.
How do I check all dividends received? ›
How can I check the information on dividends?
- Through the National Electronic Clearing Service (NECS), also called the ECS.
- By mailing the dividend warrants to the physical address of the investor.
With Sharesight's dividend tracker software, dividend payments are automatically tracked in an investor's portfolio. Investors can view their dividend income and dividend history at any time, see the impact of dividend yield on their returns, and track dividend reinvestment plans (DRPs) in their portfolio.
How do I find out if I have unclaimed dividends? ›
Unclaimed dividends are either from personal investments, parents, grandparents, a spouse, or any other family member. First, visit the SEC website; www.sec.gov.ng/non-mandated/ and search for your name. Check for personal information. If you find your name, all the details you need will also be shown.
How do I find out how much dividends I paid? ›
Where to Find Dividend Payout Ratio Numbers. The figures for net income, EPS, and diluted EPS are all found at the bottom of a company's income statement. For the amount of dividends paid, look at the company's dividend announcement or its balance sheet, which shows outstanding shares and retained earnings.
