Benchmark U.S. crude oil for August delivery rose 83 cents to settle at $40.65 a barrel Thursday. Brent crude oil for September delivery rose $1.11 to $43.14 a barrel.
Wholesale gasoline for August delivery rose 4 cents to $1.26 a gallon. August heating oil rose 3 cents to $1.23 a gallon. August natural gas gained 6 cents to $1.73 per 1,000 cubic feet.
Gold for August delivery rose $10.10 to $1,790 an ounce, silver for September delivery added 10 cents to $18.32 an ounce and September copper rose 1 cent to $2.75 a pound.
The dollar rose to 107.56 Japanese yen from 107.49 yen. The euro fell to $1.1234 from $1.1244.
7 Stocks That Prove Dividends Matter
Dividends can be an equalizing factor when comparing stocks. For example, you can be looking at one stock that is up 5% and another that is up 7% over a period of time. However, the stock that is up 5% pays a dividend while the one that pays 7% does not. That dividend factors into the stock’s total return. Therefore although the former would appear to offer a better return, the stock that pays a dividend may actually provide a higher total return.
Dividends are a portion of a company’s profit reflected as a percentage. However, this percentage changes with the company’s stock price. For that reason, a common mistake investors make is to chase a yield. But a company that pays a 4% dividend yield may be a far better investment than a company with an 8% yield. Here’s why.
The most important attribute of a dividend is its reliability. Getting a solid dividend one year has very little meaning if the company has to suspend, or cut, its dividend the next year. Investors want to own stocks in companies that have a solid history of paying a regular dividend.
Another important consideration is a company’s ability to increase its dividend. This means that the company is increasing the amount of the dividend regardless of stock price. Companies that do this over a specific period of time have achieved a special status. Dividend Aristocrats are companies that have increased their dividend every year for at least the last 25 years. Dividend Kings have increased their dividends every year for at least the last 50 years.
In this presentation, we highlight seven companies that offer a nice dividend and the opportunity for decent growth.
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