If you are a dividend investor looking to maximize the income your portfolio generates, you have probably seen Western Union (NYSE: WU) pop up on your stock screens. After all, the stock's 9.7% dividend yield is dramatically above the S&P 500 index's (SNPINDEX: ^GSPC) tiny 1.1% average yield. Here's why it could be underrated as a dividend investment, and some risks to consider before you step aboard. The good news about Western Union Western Union's huge yield will be highly attractive to investors try ...

Core Insights - Capital Southwest Corporation (CSWC) is a Business Development Company (BDC) that focuses on providing capital to middle-market companies, known for its strong dividend performance, making it attractive for dividend investors [1] Insider Activity - Director BATTIST CHRISTINE purchased 600 shares of CSWC at approximately $23.16 per share, increasing her total ownership to 13,215 shares, which signals confidence in the company's future prospects [2] Financial Metrics - CSWC has a price-to-earnings (P/E) ratio of 13.02, indicating a reasonable market valuation of its earnings, and a price-to-sales ratio of 6.55, with an enterprise value to sales ratio of 8.29, reflecting its market value relative to sales [3] - The company has an earnings yield of 7.68%, appealing to investors seeking stable income, while its debt-to-equity ratio of 0.42 suggests a balanced financial structure [4] Earnings Call Insights - CSWC's recent Q3 2026 earnings call provided insights into its financial performance and strategic initiatives, covering key figures, market conditions, and future outlook, which are crucial for its long-term success [5]

Company Overview - Phillips Edison & Company, Inc. (PECO) is headquartered in Cincinnati and has experienced a price change of 6.33% this year [3] - The company currently pays a dividend of $0.33 per share, resulting in a dividend yield of 3.44%, which is lower than the REIT and Equity Trust - Retail industry's yield of 4.25% and higher than the S&P 500's yield of 1.36% [3] Dividend Performance - The current annualized dividend of PECO is $1.30, reflecting a 3.8% increase from the previous year [4] - Over the past 5 years, PECO has increased its dividend 5 times, achieving an average annual increase of 4.79% [4] - The company's current payout ratio is 51%, indicating that it pays out 51% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - PECO is projected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2026 at $2.74 per share, representing a year-over-year growth rate of 5.38% [5] Investment Appeal - PECO is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [6]

If you're looking at a company that produces oil, you'll have to accept some volatility. The energy sector goes through booms and busts, and there's nothing that can be done about it, given that oil is a commodity. However, not all oil companies are the same. Chevron (NYSE: CVX) is probably one of the smartest ways to invest in the energy sector, and it has a very attractive 4% dividend yield, too. Chevron is diversified One of the core reasons to like Chevron is its vertical integration, which means it ...

Core Viewpoint - Costco Wholesale has demonstrated significant growth, with shares increasing over 170% in the past five years, outperforming the S&P 500's 80% gains during the same period [1] Dividend Analysis - Costco's current dividend yield stands at 0.5%, which may not attract investors initially, but the company has a history of increasing dividends and paying special dividends, suggesting it could be an underrated income stock [2] - The dividend yield is lower due to the substantial rise in stock price; as the stock value increases, the yield decreases even if the dividend payment remains the same [2] - The quarterly dividend has doubled from $0.65 at the start of 2020 to $1.30, reflecting a compounded annual growth rate of 12.2% [3] - Costco has issued special dividends twice, paying $10 per share in 2020 and $15 per share in 2023, indicating a strong performance and willingness to reward shareholders [4] Investment Perspective - While Costco's dividend should not be the primary reason for investment, it is a valuable aspect that may be overlooked due to its low yield [6] - The stock is currently valued at over 50 times earnings, which may be challenging for some investors, but it could still be a good long-term investment due to growth potential and dividend benefits [7] - For long-term investors, Costco represents a solid stock to hold, benefiting from both growth and dividend payments over time [8]

Core Viewpoint - PepsiCo has maintained uninterrupted dividend payments for over 50 years, making it a reliable income generator for investors seeking steady cash flow [1] Group 1: Financial Performance - As of January 16, PepsiCo trades at $146.60 per share with an annual dividend of $5.69, resulting in a yield of approximately 3.9%, significantly higher than the S&P 500's yield of 1.13% [1] - To earn $1,000 in annual dividends from PepsiCo, an investment of about $25,800 is required to own approximately 176 shares at the current price [2] Group 2: Growth Challenges - PepsiCo acknowledges a serious growth problem, particularly in its North America food business, which includes Frito-Lay, facing volume declines and margin pressure [3] - Recent quarters have shown volume declines for Frito-Lay North America as the company moved away from deep promotional strategies and encountered service-level issues due to system transitions [4] Group 3: Management Changes - In November 2025, PepsiCo appointed Steve Schmitt as the new CFO, marking a shift from the company's usual practice of promoting from within [5] - Schmitt's background in finance across various industries is seen as a fresh perspective for the company [6] - The company has set ambitious targets for 2026, issuing preliminary expectations in early December rather than waiting for the traditional February guidance period [6][7] Group 4: Strategic Initiatives - PepsiCo's transformation plan focuses on three key moves, with significant investments aimed at enhancing affordability, particularly in Frito-Lay North America [9]

Core Insights - The article discusses the preferences of investors regarding dividend income, highlighting the trade-off between higher yields from individual companies and the stability of instruments like CDs and ETFs [1] Group 1: Company Profiles - CBL & Associates Properties, Inc. (CBL) is a self-managed REIT focused on regional shopping malls and commercial properties, with a forward dividend yield of 4.5% and a 5-year CAGR of 14.76% [2][4] - Universal Health Realty Income Trust (UHT) offers a higher dividend yield of 7.5% and focuses on healthcare facilities, but has a lower 5-year dividend CAGR of 1.39% [7][12] - Oil-Dri Corporation of America (ODC) is not a REIT and offers a dividend yield of 1.34% with a 5-year CAGR of around 5%, while its stock has appreciated over 200% in the past 5 years [13][15] Group 2: Dividend Characteristics - CBL is legally required to pay out at least 90% of its taxable income as dividends, reducing the risk of abrupt changes in capital allocation strategies [5] - UHT's focus on the healthcare sector may attract investors seeking stability, but its lower growth rate may appeal more to short-term income investors [12] - ODC's dividend payout ratio is 20%, indicating a healthy cushion for funding dividends alongside other needs, though it carries a risk of dividend cuts due to its non-REIT status [16][17]

Core Insights - Dividends are highlighted as a crucial component of income for investors at any stage of their investment journey [1] Group 1 - Dividends can serve as a reliable source of income, emphasizing their importance in investment strategies [1]

分组1 - The article emphasizes the importance of ongoing investment tracking and suggests that exchange-traded funds (ETFs) can simplify the investment process [1] - For income-focused investors, the article highlights three ETFs: Vanguard High Dividend Yield ETF, Schwab U.S. Dividend Equity ETF, and Amplify CWP Enhanced Dividend Income ETF [2] - Vanguard High Dividend Yield ETF offers a yield of 2.4%, significantly higher than the S&P 500's 1.1%, providing diversification with around 560 holdings, primarily in the financial sector [4][5] 分组2 - Schwab U.S. Dividend Equity ETF employs a rigorous screening process, selecting only 100 stocks that have increased dividends for at least 10 years, focusing on financial strength and growth [7][8] - The article suggests that Vanguard High Dividend Yield ETF could serve as a replacement for the S&P 500 index in a portfolio, while Schwab U.S. Dividend Equity ETF focuses on financially strong dividend stocks [8]

Group 1 - The S&P 500 is projected to achieve a double-digit gain for the third consecutive year, but macroeconomic indicators suggest a potential sharp correction in 2026 [2] - U.S. unemployment has risen to 4.6%, the highest level since September 2021, raising concerns about the sustainability of the current bull market driven by artificial intelligence [2] - Business development companies (BDCs) are highlighted as a potential investment opportunity for dividend investors amidst broader economic uncertainty [3][8] Group 2 - BDCs provide loans to small and mid-sized businesses, complementing the equity raised from venture capital, and are required to distribute 90% of taxable income to shareholders, making them attractive for dividend investors [5] - The current tightening of monetary policy by the Federal Reserve may lead to reduced profit margins for BDCs if interest rates continue to fall, potentially impacting dividend payments [6] - Despite a sluggish BDC market in the first half of 2025 due to geopolitical tensions and tariff uncertainties, the demand for borrowing among businesses may create opportunities for BDCs [7][8]