Dividend-paying stocks can be excellent investments but it is clear that there are some real duds out there and you don’t want to buy just any stock. But which stocks are likely to provide good returns and be good fits for your investment portfolio?
It pays to look at respected sources for your financial and stock research. You want opinions that are backed by solid research from firms that have a history of making good recommendations.
The Motley Fool is on such source. In a recent article, they offered positive recommendations on three top dividend stocks to buy today. These are Iron Mountain Inc. (IRM), Target (TGT), and Caretrust REIT (CTRE). Let’s dig into what they said:
Iron Mountain Inc. (IRM)
Currently paying a dividend of 7.4%, Iron Mountain may be a steal at today’s depressed price. The Motley Fool thinks there is no reason why it should be this cheap. They argue that IRM enjoys a near-monopoly in its sector: the records and data storage business. With over 225,000 customers in over 50 countries, it is realizing exceptional growth and should continue to do so over the foreseeable future. Capture the rich dividend while you wait for the price to rise.
An iconic retailer, Target is bouncing back this year after a poor sales showing in early 2017 that depressed its price. This business generates a healthy cash flow, quite sufficient to maintain its 3.6% dividend yield. Even better, The Motley Fool indicates that TGT is clicking in two of its main segments now: physical retailing as well as e-commerce. With fifty-two years of consecutive dividend increases, Target looks to be, well, on target to keep delivering to shareholders.
Caretrust REIT (CTRE)
This real estate company, like many others, is down considerably as the forecast for continued increases in interest rates has affected the sector. The Motley Fool believes that negative investor reaction to REIT’s has been overblown. They particularly like CTRE, which sports a 6.1% dividend yield and is still primed, they say, for “Many more years of market-beating growth.”
When looking for good stocks that pay dividends, you’ll find many sources of varying quality that provide opinions. It pays to be selective when heeding their views. The Motley Fool has demonstrated over the years that is does its homework and is a credible source. Take a look at these three stocks and see if they might for within your portfolio.