Unfortunately, the current environment is forcing some firms to pare back their distributions, especially in the financial sector. Fannie Mae’s dismal second-quarter results last week — which included a $2.3 billion loss and a dividend cut from $0.35 to $0.05 — is just one example of the kind of news that’s coming over the wires.
In fact, according to data from Standard & Poor’s, the second quarter saw the greatest number of dividend cuts in 18 years. So yes, there are reasons to be worried about weak companies being forced to cut.
But there are also plenty of companies that continue to pay — and increase — their dividends.
Recent examples of dividend hikers include Cummins and CVS. And seven stocks in the Dividend Superstars portfolio made payments in July.
Larger companies, particularly those with longer histories of dividend payments, look far more likely to continue their streaks. These companies have strong balance sheets and have survived plenty of other market cycles.
Bottom line: There are still plenty of places to find solid, reliable yields … you just have to do a little legwork.
Read the rest of this article and learn which Dividend Superstars portfolio companies made payments in July.
To your dividend investing success,
InvestingInDividends.com
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