Is HR dividend safe?
Healthcare Realty Trust Incorporated ( HR ) pays dividends on a quarterly basis. Healthcare Realty Trust Incorporated ( HR ) has increased its dividends for 2 consecutive years. This is a positive sign of the company's financial stability and its ability to pay consistent dividends in the future.
In some cases, a high dividend yield can indicate a company in distress. The yield is high because the company's shares have fallen in response to financial troubles. And the high yield may not last for much longer. A company under financial stress could reduce or scrap its dividend in an effort to conserve cash.
Healthcare Realty Trust has an annual dividend of $1.24 per share, with a forward yield of 8.93%. The dividend is paid every three months and the last ex-dividend date was Feb 23, 2024.
| Target | Low | Average |
|---|---|---|
| Price | $15 | $17.2 |
| Change | +8.38% | +24.28% |
“One mistake to avoid,” Cabacungan says, “is to buy a company's stock simply because it issues a high dividend.” If the company has leveraged excessive debt to fund the dividend, it could come at the expense of future profitability and hurt growth prospects.
Safest Dividend Stock #1: Globe Life Inc. (
Founded in 1979, the company has raised its dividend every year for the past 18 years. Globe Life reported Q4 and full year 2023 earnings on February 7th, 2024. For the quarter, earnings-per-share were $2.88, above the $2.46 the company reported in the same quarter of 2022.
Despite their storied histories, they cut their dividends. 9 In other words, dividends are not guaranteed and are subject to macroeconomic and company-specific risks. Another downside to dividend-paying stocks is that companies that pay dividends are not usually high-growth leaders.
There's no limit, and no set amount – you might even pay your shareholders different dividend amounts. Dividends are paid from a company's profits, so payments might fluctuate depending on how much profit is available. If the company doesn't have any retained profit, it can't make dividend payments.
Dividends are typically paid on a quarterly basis, though some pay annually, and a small few pay monthly. Companies that pay dividends are usually more stable and established, not those still in the rapid growth phase of their life cycles.
Most stocks that pay dividends pay them every three months, after the company releases its quarterly earnings report. However, others pay their dividends every six months (semi-annually) or once a year (annually). Some stocks also pay monthly, or on no set schedule — these are termed "irregular" dividends.
Is HR a growing field?
Human resources are one of the fastest-growing career paths in the United States. In addition to high-earning potential, a human resources career can be personally rewarding and offer longevity. It can even lead to an executive-level position within an organization.
HR functions spend $2,524 per employee annually on average. The top spending areas are recruiting ($425 per employee), total rewards ($213 per employee) and learning and development ($188 per employee).
HR's primary activities include recruitment, administration, compensation and benefits, training and development, and employee relations and performance management. However, they often do much more.
But with the right stock portfolio, you can enjoy peace of mind as you live entirely off the dividend payments you earn. It sounds too good to be true – but it's entirely possible, and people around the world are doing it right now. You can too – it just takes a bit of education and the right tools.
Dividend investing can be a great investment strategy. Dividend stocks have historically outperformed the S&P 500 with less volatility. That's because dividend stocks provide two sources of return: regular income from dividend payments and capital appreciation of the stock price. This total return can add up over time.
Generally speaking, double-digit dividend yields are indeed too good to be true. They are often either being paid by unstable companies, or simply represent too much of a company's earnings to be sustainable. Of course, there are some exceptions.
| Dividend Stock | Current Dividend Yield* | Analysts' Implied Upside* |
|---|---|---|
| Johnson & Johnson (JNJ) | 3.1% | 25.3% |
| Merck & Co. Inc. (MRK) | 2.4% | 10.6% |
| Chevron Corp. (CVX) | 4% | 30.8% |
| Coca-Cola Co. (KO) | 3.3% | 18.1% |
| Stock | Dividend yield |
|---|---|
| Coca-Cola Co. (KO) | 3.3% |
| Johnson & Johnson (JNJ) | 3.4% |
| Prologis Inc. (PLD) | 3.7% |
| Realty Income Corp. (O) | 5.9% |
The Coca-Cola Company's ( KO ) dividend yield is 3.22%, which means that for every $100 invested in the company's stock, investors would receive $3.22 in dividends per year. The Coca-Cola Company's payout ratio is 74.22% which means that 74.22% of the company's earnings are paid out as dividends.
What Is a Good Dividend Yield? Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment.
Should I focus on dividends or growth?
If you are looking to create wealth and have a longer time horizon, staying invested in growth will enable you to enjoy longer returns. But if you are looking for a more immediate return and steady cash flow, dividend investing could be the best choice for you.
Now, there's no fixed amount of money you need to invest for dividends. It all depends on the yield of your investments, so understanding “yield” is pretty essential to understanding dividend investing. (Note that the definition below is how “yield” applies to stock dividends.
Dividend-paying Stocks
Shares of public companies that split profits with shareholders by paying cash dividends yield between 2% and 6% a year. With that in mind, putting $250,000 into low-yielding dividend stocks or $83,333 into high-yielding shares will get your $500 a month.
If you were to invest in a company offering a 4% annual dividend yield, you would need to invest about $900,000 to generate a monthly income of $3000. While this might seem like a hefty sum, remember that this investment isn't just generating income—it's also likely to appreciate over time.
The 4% rule for retirement budgeting suggests that a retiree withdraw 4% of the balance in their retirement accounts in the first year after retiring and then withdraw the same dollar amount, adjusted for inflation, every year thereafter.
