As high-frequency trading and hedge funds have become more commonplace, many investors have focused their attention more toward scoring big, quick capital gains, and forgotten about the benefits of steady cash flows in the form of regular dividends.
That’s a real shame, because dividends can be a powerful portfolio tool — especially for those firms that continuously raise their payouts. Compounding dividend payments can lead to overall larger total returns than just focusing on share price alone.
For example, if you own a stock that pays out $1,000 in dividends every year and grows that payout by 8% annually, you’ll get a check for about $20,000 after 40 years. That’s a pretty nice payout. However, if you reinvest those dividends each year, the amount of income you generate is truly staggering — that stream surges to roughly $58,500 each year!
So, how can investors can find those “dividend achievers” that continually raise their payouts for decades?
Easy. Just read on as we look at five of the most Dependable Dividend Stocks in energy, listed by yield: