Company Overview - Korn/Ferry (KFY) is headquartered in Los Angeles and operates in the Business Services sector, with a year-to-date price change of 7.16% [3] - The company currently pays a dividend of $0.48 per share, resulting in a dividend yield of 2.66%, which is higher than the Staffing Firms industry's yield of 2.18% and the S&P 500's yield of 1.5% [3] Dividend Performance - Korn/Ferry's annualized dividend of $1.92 has increased by 20.8% compared to the previous year [4] - Over the past five years, the company has raised its dividend four times, achieving an average annual increase of 40.80% [4] - The current payout ratio for Korn/Ferry is 38%, indicating that it distributes 38% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for Korn/Ferry's earnings in fiscal year 2025 is projected at $5.17 per share, reflecting an expected increase of 5.94% from the previous year [5] - Future dividend growth will depend on the company's earnings growth and payout ratio [4] Investment Considerations - Korn/Ferry is considered a compelling investment opportunity due to its strong dividend performance and current Zacks Rank of 3 (Hold) [6] - The company is positioned well for income investors, especially in contrast to tech start-ups and growth businesses that typically do not offer dividends [6]

Gen Z Dividend Investing Trends - Gen Z investors are increasingly interested in dividend investing as a way to supplement their income in an uncertain market [4] - Some Gen Z investors are drawn to high-yield dividend ETFs, but these can be very risky due to high leverage and underlying securities that are not dividend-oriented [2] - Experts advise Gen Z investors to be cautious about highly leveraged dividend ETFs and consider more traditional dividend funds [2][3] Dividend Investing Strategies - Dividend aristocrats, companies with a history of growing dividends for over 25 years, are a good starting point for dividend investing, although their average yield is just under 2% [6] - Investors should look for companies or funds with a long-term history of consistently paying dividends, even during economic downturns like 2008-2009 and the pandemic [7][8] - Dividend investing benefits from active management to understand the company or fund manager's philosophy regarding returning capital to shareholders through dividends and achieving capital appreciation [8][9] Balancing Dividend Yield and Price Appreciation - Investors should aim for a total return of 8-10% over the long term, combining dividend income and stock price appreciation [12] - A long-term approach is crucial in dividend investing, as income and capital appreciation are spread out over time [14] - While a high dividend yield is attractive, investors should also consider the potential for price appreciation and the overall long-term return [10][11]

Verizon Communications Inc (Symbol: VZ) has been named as the ''Top Dividend Stock of the Dow'', according to Dividend Channel, which published its most recent ''DividendRank'' report. The report noted that among the components of the Dow Jones Industrial Average, VZ shares displayed both attractive valuation metrics and strong profitability metrics. For example, the recent VZ share price of $43.97 represents a price-to-book ratio of 1.8 and an annual dividend yield of 6.3% — by comparison, the average divi ...

Group 1 - Johnson & Johnson's stock has shown an average annual growth rate of 6.3% over the past five years, significantly lower than the S&P 500's average annual gain of 14.7% [1][7] - The company has a recent market value of approximately $430 billion, with second-quarter revenue increasing by 5.8% year over year and earnings rising by 18% [4] - Johnson & Johnson is a dividend-paying stock with a recent yield of 2.9% and has been increasing its payout at an average rate of around 5% over the past five years [3] Group 2 - The company is facing a class action lawsuit related to talcum powder, which could impact its financial obligations until resolved [4] - The stock is currently priced attractively, with a forward-looking price-to-earnings (P/E) ratio of 15.8, close to its five-year average of 15.6 [5] - Analysts have identified other stocks as better investment opportunities compared to Johnson & Johnson, indicating a competitive investment landscape [6]

Core Insights - Warren Buffett values dividends, despite Berkshire Hathaway not paying them. The company benefits from dividends received from its investments, with nearly all portfolio stocks providing dividends [1][3]. Group 1: Coca-Cola Investment - The Coca-Cola Company is a significant investment for Berkshire Hathaway, with Buffett first acquiring shares in 1988 for approximately $1.3 billion [4]. - Berkshire currently holds 400 million shares of Coca-Cola, generating annual dividends of $816 million, resulting in an effective yield of about 62.7% based on the initial investment [5]. - Coca-Cola has consistently increased its dividends annually since Buffett's initial purchase, contributing to the high yield [5]. Group 2: Long-term Returns - Coca-Cola's share price has increased nearly 1,300% since early 1988, not accounting for dividends. When including reinvested dividends, the total return exceeds 3,100% [8]. - The investment in Coca-Cola has provided substantial returns alongside dividends, making it a strong choice for income investors [7].

Core Viewpoint - Companies with a strong history of dividend payments and increases, such as PepsiCo, Black Hills, and Tyson Foods, are attractive to income-focused investors, offering dividend yields between 3% and 4% [1] Group 1: PepsiCo - PepsiCo has raised its dividends for 53 consecutive years, with a recent increase of 5% to $1.4225 per share, resulting in an annual dividend of $5.69 per share [3] - The current dividend yield for PepsiCo is 4.02% [3] - As of June 30, PepsiCo's annual revenue was $91.75 billion, and it reported Q2 2025 EPS of $2.12 and revenues of $22.73 billion, both exceeding consensus estimates [4] Group 2: Black Hills - Black Hills has a 55-year history of consecutive dividend increases, with the latest hike raising the quarterly payout from $0.65 to $0.676 per share, equating to an annual figure of $2.70 per share [6] - The current dividend yield for Black Hills is 4.63% [6] - As of June 30, Black Hills' annual revenue was $2.24 billion, and it reported Q2 2025 revenues of $439 million, which fell short of the consensus estimate of $448.40 million, while EPS of $0.38 exceeded the consensus of $0.37 [7] Group 3: Tyson Foods - Tyson Foods has increased its dividends annually for the past 12 years, with the most recent increase raising the quarterly payout from $0.49 to $0.50 per share, resulting in an annual dividend of $2 per share [9] - The current dividend yield for Tyson Foods is 3.58% [9]

Group 1 - The REIT sector (XLRE) has performed better in 2025 compared to 2022, indicating a recovery trend in the market [1] - Despite the overall improvement, certain REITs are still trading below their historical averages, presenting solid buying opportunities for investors [1]

Group 1 - The REIT sector (XLRE) has performed better in 2025 compared to 2022, yet some REITs still offer solid buying opportunities as they trade below historical averages [1]

Core Insights - The article discusses the perspective of a retired income investor focused on generating passive income through high-yield securities to supplement retirement income [1] Group 1: Investment Strategy - The investor seeks dividend-paying income stocks and funds, including Business Development Companies (BDCs), Real Estate Investment Trusts (REITs), Closed-End Funds (CEFs), and Exchange-Traded Funds (ETFs) to enhance retirement income beyond pension and Social Security [1] - The investor emphasizes the importance of conducting thorough research and making informed long-term investment decisions, especially after experiencing minimal losses during the Great Recession [1] Group 2: Market Psychology - The investor expresses a fascination with the human psychology of markets, viewing it as complex and intriguing as the financial aspects of investing [1]

Core Insights - Aggressive ETFs with yields over 8% have grown to approximately $160 billion in size over the past three years, indicating a significant trend in the investment landscape [1][2] - Investors are increasingly turning to complex derivative-based ETFs for higher dividends, moving away from traditional dividend-paying stocks [2][5] - This shift is particularly popular among younger generations, such as Gen Z, who are seeking alternative investment strategies to achieve financial independence and early retirement [3][4] Investment Strategy - The traditional strategy involves purchasing shares of established companies with a history of paying dividends, holding them long-term, and collecting dividends for retirement [1] - Newer strategies involve ETFs that utilize derivatives, such as covered calls, to generate higher dividend payouts, but this approach may limit long-term capital appreciation [5][6] Risks and Considerations - Derivative-based ETFs may cap potential gains, as they are required to sell stocks at predetermined prices, potentially missing out on significant value increases [6][7] - These ETFs are subject to higher tax burdens since their payouts are taxed as ordinary income rather than qualified dividends, which could impact net returns [8] - Experts suggest that these funds may underperform compared to simpler investment strategies like the S&P 500 over long periods [7] Portfolio Management - It is advisable to limit exposure to derivative-based ETFs within a diversified portfolio that includes traditional dividend stocks and growth assets to balance risk and potential returns [11] - Investors should consider management fees and tax implications when investing in dividend ETFs, as these factors can affect overall investment income [12]