These dividend-paying companies not only provide passive income, but they can reliably support it as well
Finding the best dividend stocks isn’t as easy as buying
companies with the highest yield. Like anything in life, if something’s too
good to be true, it usually is. In this case, eager investors are sometimes
quick to jump on the yield bandwagon, only to discover later that the generous
passive income exists for a reason.
To avoid severe disappointments down the road, you should
always give the target company’s balance sheet a solid run-through. The best
dividend stocks will feature ample amounts of cash, which obviously supports
the payout cause. Moreover, anything can happen in the markets, especially at
this juncture. Having a cash moat enables firms to pay their shareholders, even
when the going is rough.
Additionally, a cash-rich organization allows management
greater flexibility for future endeavors. You shouldn’t look at payouts as an
ephemeral concept, but rather, a long-term relationship. Ultimately, the best
dividend stocks are built for running marathons, not a 40-yard dash.
Here are my picks for the top seven dividend-paying
companies with a boatload of cash!
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