Everything You Need to Know About the Best High Dividend Stocks - Guide for Millennials

Tim Thomas

We often hear that Millennials are terrible investors because most Millennials entered the workforce during the 2008 financial crisis.

Shortly after, we saw one of the greatest economic booms to the economy and those who invested made some of the greatest returns.

Dividend stocks traditionally offer stable returns and lower volatility, providing comfort to those Millennials with the 2008 financial crisis still fresh in their minds.

High Dividend Stocks

Millennials are gaining regular dividends, and additional portfolio growth as dividend stocks have outperformed their peers from 1990 to 2015 (source).

What Are Dividend Stocks

If you’re not familiar with dividends, here is a short recap.

1

Dividends are a portion of the company’s earnings that are distributed to shareholders. In addition to the value of a company’s stock going up, dividends are an additional payment sent to shareholders simply for owning the company.

2

Dividend payments are sent typically monthly, quarterly, or on an annual timeline, and determined by the company’s board of directors.

3

High Dividend Stocks are typically stocks that offer a dividend yield greater than the average 2.00%.

4

Typically high dividend stocks come from companies with strong cash flow such as: – REITs (Real Estate Investment Trust) – Oil & Gas Companies – Telecommunication Companies – Utilities – Banks

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