Companies that are regularly sharing a percentage of their profits with investors tend to be profitable on a recurring basis and are often able to provide transparent long-term growth outlooks. In short, these are businesses we’d expect to rise in value over time and make their patient shareholders richer.
But not all dividend stocks are created equally. Although some ultra-high-yield stocks — “ultra-high-yield” in the sense that their yields are at least four times higher than the S&P 500 — are more trouble than they’re worth, select high-octane income stocks can be true gems.
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