2 Great Income Stocks to Buy Right Now
Income in the form of steady dividends is always a good thing, but it may be even more valued now that markets are volatile and fixed income investments aren't yielding as much bang for the buck due to low interest rates and higher default risk. More investors are looking to good dividend stocks to supplement their income strategies. When looking for good income stocks, you want dividends that are consistent and sustainable -- as well as the potential for long-term capital appreciation and total returns. Here are two great income stocks that fit the bill.
You will find few companies that offer higher dividends than BlackRock (NYSE: BLK), the largest asset management firm in the country, with $7.8 trillion in assets under management. BlackRock pays out a ridiculously high $3.63 quarterly dividend per share, which comes out to $14.52 per share annually. I'm no math major, but if you own 100 shares of BlackRock, that means you get $1,452 per year in income. BlackRock pays out a dividend yield of 2.18%, which is the percentage it pays out in relation to its stock price. It also pays a manageable 50% payout ratio, which is the percentage of earnings that go to the dividend. You don't want too high a ratio, or the company is paying out more of earnings for dividends than it probably should. Over the last five years, BlackRock's dividend has increased by 66%.
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Source Fool.com
