U.S. housing starts in May saw the highest increase since 2016, along with an uptick in applications to build, indicating a rejuvenation of residential construction.
Investors are always happy when a company they own increases its dividend. After all, as an income investor, you just received a raise.
But the hikes often mean more than just a company being generous. Dividend increases can also be an indication that the company feels its future earnings will be sufficient to cover the increase being given to its shareholders.
During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.
Wall Street analysts wield a lot of influence. A favorable or unfavorable mention of a stock by a well-known analyst or brokerage can move a stock up or down by several percentage points overnight. In the case of a downgrade or severe price target slash, it can take weeks or longer for a stock to recover.
The last 18 months have been rough for investors in real estate investment trusts (REITs). Excluding dividends, only 9 out of 187 REITs have been profitable over that time frame.