Updated: July 25, 2016
Today I’ve got good news and bad news for you—and four stocks with dividends destined to double soon.
First, the good news: S&P 500 companies are sending out more dividend cash than ever before. According to FactSet, dividends per share (DPS) are at an all-time high, hitting $43.90 in the 12 months ending in April, up 7.5% from the previous 12-month period.
The bad news? The party’s ending … or at least winding down. That’s because stalling earnings growth is forcing companies to dig deeper into their profits to keep the dividend parade rolling.
Dividends and Earnings: On a Collision Course
Right now, a record 44 S&P 500 companies have payout ratios above 100%—so they’re paying out more in dividends than they earn, something they clearly can’t keep up indefinitely.… Read more