SCEpK

Southern California Edison Company 5.45% Fixed-to-Floating Rate Trust Preference Securities

21.9700
USD
0.92%
21.9700
USD
0.92%
21.7500 26.3200
52 weeks
52 weeks

Mkt Cap 263.64M

Shares Out 12.00M

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Let Dividend King Stocks Lead You to the Promised Land

A well-rounded investment portfolio should include dividend-paying companies. As a shareholder, dividends are a way to be rewarded for holding on to your investments, and when utilized the right way, they can make up a good portion of your portfolio's total return. However, not all dividend-paying companies are created equal. If you're looking for consistent, well-established companies, look no further than Dividend Kings. Here's why you should let them lead you to the promised land. They've stood the test of time Dividend Kings got their honorable title because they've managed to increase their yearly dividend for at least 50 consecutive years. Being able to maintain a dividend for that long is an accomplishment in itself, but being able to increase it for that many years is a completely different feat. With Dividend Kings, you know you're investing in companies that have stood the test of time. Any company with the Dividend King title in 2022 has increased its dividend since 1972, at a minimum. During that time, these companies have made it through some of the toughest economic conditions the U.S. has seen. Dividend Kings have made it through: Black Monday (1987). Dot-com bubble collapse (2000). The Great Recession/Financial crisis (2008-2009). COVID-19 pandemic (2020). There are many solid companies who had to cut their dividends during those times, including prominent Fortune 500 companies, but Dividend Kings stood tall and weathered the storm. There's power in the DRIP While receiving dividends can be a great source of income, the real power comes when you enroll in your brokerage company's dividend reinvestment program (DRIP). With DRIP, any dividends you receive are automatically used to buy more shares of whatever company or fund paid them out. This adds to the power of compound interest. Let's imagine we have two funds -- one without a dividend and one with a 2.5% dividend yield -- and you contributed $500 into both monthly, receiving a 10% annual return (the historical average of the S&P 500). Assuming the dividend yield stays the same, here's how the account totals would look in 25 years: With zero additional effort, receiving (and reinvesting) dividends increased your account total by roughly $274,000. As a dividend investor, it helps to delay receiving payouts in cash until retirement, when having an additional source of income can be more beneficial. Until then, you can reap major rewards by using a DRIP. Even if you manage to accumulate $500,000 in a fund with a 2.5% yield, that's $12,500 in yearly payouts. More importantly, it helps to invest in Dividend Kings because you can, in good faith, not only rely on the dividend but also anticipate it increasing. Your dividend payout increases, your number of shares increases, and you receive higher payouts; it's a cycle you want to get stuck in. 10 stocks we like better than Walmart When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys. Stock Advisor returns as of 2/14/21 The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

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