As of Friday’s trading session, Newell Brands Inc (Symbol: NWL) has crossed into the coveted 4% yield territory, offering investors a substantial quarterly dividend of $0.28, sending shares as low as $6.92 during the day. This achievement holds paramount importance for investors due to the historical significance of dividends in contributing significantly to the stock market’s total return.
For instance, let’s rewind to the early 2000s, imagining investing in the iShares Russell 3000 ETF (IWV) shares on 5/31/2000 for $78.27 each and finding them valued at $77.79 by 5/31/2012, reflecting a minor loss of $0.48 or a 0.6% decline over twelve years. However, amid this underwhelming uptrend, the bright spot emerges as a generous $10.77 per share in dividends collected over this period, bolstering the return to a notable 13.15%. Even with dividends reinvested, the average annual total return amounts to a modest 1.0%. Hence, a yield surpassing 4% appears strikingly attractive in comparison, especially if it is sustainable. Newell Brands Inc (Symbol: NWL) holds the distinction of being a member of the Russell 3000, thus attaining a special status as one of the largest 3000 U.S. stock market companies.
Dividend payouts are generally unpredictable, closely mirroring the ebb and flow of a company’s profitability. Relying on the historical chart for NWL can offer insights into the likelihood of the current dividend’s continuity, thereby aiding in assessing the plausibility of a 4% annual yield expectancy.
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