While the reports of price-earnings to Wall Street start to get a little ridiculous, high-dividend stocks have not yet lost their lustre. Institutional investors, empowered by record low cost of borrowing are alignment every imaginable society. Until PSE stay within 25 years, the cost of Portage is offered by benefits companies.
High dividend companies have an advantage on non-income stocks in what they have a buffer against rising interest rates: their dividends. When companies which pay no dividends are sure to decline as institutions relax their carry trade long-term borrowings against corporate profits, dividend payers know seem attractive as long as they are not returning too much money.
Philip Morris International (PM) is one of these companies appears to be solid against even higher costs of borrowing. The company is not a price too far in the future with a PE of 16, while yield dividend right around 4% per year gives plenty of room to the company. Unlike bonds, dividend usually stocks not sour steps on rising borrowing costs, since any recovery usually accompany stimulates the bottomline profit. With links, the bottomline is not as important to the upside.
As always, the passive gains are the way to go. Consider the establishment of a drip to make routine purchases of blue chip equities. While high-dividend companies are not as "high-dividend" that they were, they have a lot of downside protection makes them attractive in any environment. Load!
Passive income, PM, income, PRD, stock dividend stock
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