Picking income stocks that will grow the dividends provides two big benefits to your portfolio. One, a rising dividend will force the market to increase the share price at a comparable rate. Second, a company that has consistently increased dividends is not about to announce a dividend cuts.
Author: Tim Plaehn
Fear can cause an investor to sell shares at the wrong time, resulting in unnecessary losses and also missing out on the possibility of attractive future share price gains and dividend payments.
When you look at shipping stocks as dividend income investments, a good starting point includes a historical review. For about a 2 1/2 year period of time, from early 2006 until the fall of 2008, shipping stocks – especially the dry bulk shippers – were the darlings of Wall Street and investors were racking up both large dividends and rapid share price increases.