{"id":2910,"date":"2023-06-29T09:12:17","date_gmt":"2023-06-29T09:12:17","guid":{"rendered":"https:\/\/mysourcefunding.com\/tax-preparation\/best-dividend-stocks-for-reliable-income-july-2023\/"},"modified":"2023-06-29T09:12:17","modified_gmt":"2023-06-29T09:12:17","slug":"best-dividend-stocks-for-reliable-income-july-2023","status":"publish","type":"post","link":"https:\/\/mysourcefunding.com\/?p=2910","title":{"rendered":"Best Dividend Stocks For Reliable Income: July 2023"},"content":{"rendered":"
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What are some good dividend stocks to buy? The right answer depends on your financial goals.<\/p>\n

With dividend stocks, there’s usually a trade-off between yield and reliability. Said another way, the dividend-payers that generate maximum income for your investment dollar aren’t always the most dependable. And the most dependable dividend stocks, well, they may not deliver the highest payouts.<\/p>\n

Yield Vs. Reliability<\/h2>\n

This trade-off makes sense. Dividends consume a lot of cash. For a company to pay dividends reliably for decades\u2014through good economies and bad\u2014its use of capital must be disciplined. Aggressive growth strategies or aggressive shareholder payments can put the dividend program at risk.<\/p>\n

Fortunately, you’re an investor, not a CEO. You don’t have to make a full trade-off between yield and reliability. You can balance the two through diversification.<\/p>\n

To find the balance that suits your comfort level, read on for a closer look at higher yielding dividend stocks, followed by a review of the most reliable dividend payers. From there, we’ll walk through key dividend metrics that’ll help you choose your best investments.<\/p>\n

With inflation at a 40-year high running at more than 6%, dividend stocks offer one of the best ways to beat inflation and generate a dependable income stream. <\/em><\/strong>Click here to download \u201cFive Dividend Stocks To Beat Inflation,\u201d a special report from Forbes’ dividend expert, John Dobosz.<\/em><\/strong><\/p>\n

Highest Yield Dividends<\/h2>\n

As a reminder, dividend yield is the annual dividend payment divided by the stock price. If you buy a stock for $100 and the annual dividend payout is $5, the yield is 5%.<\/p>\n

The highest-yield dividend stocks and funds pay out in the range of 5% to 12% or more. Generally, the higher the yield, the more likely it is to be inconsistent or unsustainable.<\/p>\n

Zim: A High-Yield Example<\/h3>\n

Container shipping company Zim Integrated Shipping Services<\/strong> (ZIM) is an interesting example of a high-yield dividend payer. Zim\u2019s share price in the fourth quarter of this year has remained in the low-to-mid-$20s. Including the December dividend, Zim will pay $27.55 per share in dividends in 2022. That’s an astronomical (and not sustainable) yield above 100%.<\/p>\n

Zim\u2019s 2022 shareholder payments included a special dividend of $17 per share in March. Thanks to rising shipping costs and volume, the company\u2019s cash on hand ballooned compared to the prior year. Shareholders were the beneficiaries. Since then, Zim’s declared dividends were:<\/p>\n