Dividend stocks are among the most popular types of investments. Numerous investors and billionaires have amassed fortunes solely through dividend payments. Wells Fargo & Company, Verizon Communications, Medtronic Plc, and Moody’s Corporation are all well-known dividend stocks. The dividend payout ratio is a critical metric to consider before investing in dividend stocks. Businesses with lower payout ratios perform better than those with higher payout ratios. This is because they can pay consistent dividends while investing sufficiently in themselves to ensure the payments continue. The study by Wellington Management and Hartford Funds demonstrates the critical nature of payout ratios. Between 1979 and 2020, dividend stocks in the second quintile had an average dividend payout ratio of 41%. Additionally, these stocks experienced a significantly higher compound annual growth rate (CAGR) than the S&P 500.
Insider Monkey takes a look at the 10 high-yield dividend stocks with payout ratio less than 55%. New York Mortgage Trust, Inc. is up 0.96 percent year to date and 16.67 percent in the last six months. The company is ranked tenth on the list of dividend stocks with a payout ratio of less than 55%. New York Community Bancorp, Inc. is ranked ninth on the list of dividend stocks with a payout ratio of less than 55%. Revenue was $347 million, up 23.38 percent year over year and surpassing analysts’ expectations by $12.69 million. MFA Financial, Inc. increased by 8.13 percent over the last six months and by 20.21 percent year to date. The company invests primarily in residential mortgage assets, residential whole loans, and mortgage servicing rights, in addition to other related assets. Brandywine Realty Trust is a publicly traded, full-service integrated real estate company headquartered in the United States. It is ranked seventh on the list of dividend stocks with a payout ratio of less than 55%. Chimera Investment Corporation is another US-based real estate investment trust that features a payout ratio of less than 55% on our list of high-yield dividend stocks. The company invests in mortgage-backed securities and other real estate-related assets. For more details, click 10 High-Yield Dividend Stocks With Payout Ratio Less Than 55%.
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