Upcoming Dividend Paying Stocks In August 2023

A dividend is a corporate action where the company distributes a portion of its profit among its investors as a reward. Dividends are incentives for investors to invest their money in companies. A company that pays regular dividends typically see high trading volume and more cash flow from the market. For investors, dividends add to their income and also help them offset any losses they might have incurred due to a decline in the company’s share price.

Let’s find out the list of upcoming dividend paying stocks in August 2023. 

Dividend Paying Stocks in August 2023

How to Select the Best Dividend Stocks

While searching for investment opportunities in regular dividend paying stocks, these are the key points to consider.

Long-term earning growth: Investors should look for companies with consistent long-term 

profitability. Any company can experience sudden profits in some quarters, but the aim is to find companies with steady annual growth.

Avoid debt laden companies: Avoid companies that are saddled with debt. Companies with high debt will channel their earnings toward paying off debt rather than paying dividends. Investors should evaluate the debt-to-equity-ratio before investing.

Check sector trends: It is essential to consider the broader sector trend to understand future projections. Choose dividend stocks from sectors that have steady demand and stable growth prospects. Companies with a competitive edge and market leadership are expected to generate consistent returns.

Dividend yield: Dividend yield is a financial ratio of the company’s annual dividend payment by its current stock price. A higher dividend yield may suggest an attractive income opportunity, but to support a strong dividend yield, it is essential to have stable financials and strong growth prospects.

Earning growth and payout ratio: Another factor to consider is the company’s earnings growth over time compared to the dividend payout ratio. The company should be generating enough income to comfortably cover dividend expenses.

Consistent dividend history: A consistent dividend payout history indicates the company’s stable financial health and the management’s commitment to reward investors. 

Final Words

Dividend stocks are excellent tools for diversifying your portfolio and earning additional income. Using the dividend yield formula, you can calculate which company is paying a higher dividend for the same investment amount. If you have any of these stocks in your portfolio, you are eligible to receive dividends as per the declared percentage, provided you hold them until the record date. 

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Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.