Published on 3 Aug 2022 on Insider Monkey via Yahoo Finance
In this article, we discuss 10 high-yield monthly dividend stocks for August. You can skip our detailed discussion on dividend stocks, and go directly to read 5 High-Yield Monthly Dividend Stocks for August.
Due to elevated inflation and risks of recession, global economic growth is expected to fall to 2.9% in 2022, from 5.7% in the last year, according to World Bank. Considering the current situation, investors are gravitating toward dividend stocks in an effort to protect their investments. The main reason for the popularity of dividend stocks in volatile markets is that these companies often have higher-quality earnings, which are subsequently offered to shareholders as dividends. Moreover, strong dividend yields can support companies during a market crash, generating passive income for investors, as Morgan Stanley reported.
The historical performance of dividend companies shows that these stocks have outperformed non-dividend stocks as they focus on growing their cash flows and repurchasing shares. According to a report by Factset, dividend stocks had an annual average return of 9.7% from 1993 to 2015, compared with an average return of 4.18% of non-dividend stocks during the same period. Additionally, the report mentions that focusing on yields is crucial to dividend investment, especially the respective company’s historic average yield and its basic fundamentals. Companies that have strong track records of dividend growth appeal to investors more because they give them a clear insight into their potential income from these stocks.
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