Published on 6 Mar 2024 on Insider Monkey via Yahoo Finance
11 Best March Dividend Stocks To Buy
In this article, we discuss 11 best March dividend stocks to buy. You can skip our detailed analysis of dividend capture strategy and performance of dividend stocks, and go directly to read 5 Best March Dividend Stocks To Buy.
Dividend investing is highly favored among investors because of its potential for long-term benefits. However, there's another approach called the dividend capture strategy, which some investors employ to focus on short-term gains. This strategy involves frequent trading with the goal of capturing the cash payouts from more stocks than one would typically receive through traditional buy-and-hold methods. Unlike the conventional approach where investors hold onto stocks for longer periods, dividend capture involves swiftly moving in and out of various stocks to secure a continuous flow of dividends. It's essentially an income-oriented trading strategy that aims to generate dividends from a diverse range of stocks over short timeframes, rather than relying on periodic payouts from a select few stocks.
Regardless of the specific investment approach, dividend stocks have consistently captured investors' attention due to their reliable returns over time. Particularly, companies that have consistently increased their dividend payouts have historically outperformed other asset classes. As indicated in a report from Nuveen, over extended periods, companies that consistently raise dividends or initiate dividend payments have demonstrated superior returns with lower risk, as measured by standard deviation, compared to companies that maintain, reduce, or eliminate their dividends. Walmart Inc. (NYSE:WMT), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV) are some of the best dividend growth stocks to invest in. Aside from focusing on the growth of dividends, the report also highlighted the significance of payout ratios. Companies that are barely earning enough to cover dividend payments or those allocating most of their earnings as dividends might face challenges from competitors. This is because their cash flow might not be adequate to sustain their operations effectively. Moreover, companies with high dividend yields, particularly those with high payout ratios, could face risks of limited future growth. This situation could potentially endanger both the appreciation of share prices and the growth of dividends.