The Allure of Dividends in Investing
Investors flock to National Health Investors, Inc. (Symbol: NHI) as it breaks the 6% yield territory, with its quarterly dividend translating to an annualized $3.6 per share. The allure of dividends lies in their historical significance, constituting a substantial portion of the stock market’s total return. For instance, imagine acquiring shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 at $78.27 per share. Fast forward 12 years to 5/31/2012, the value per share dipped slightly to $77.79. However, factoring in the $10.77 dividend per share over the same period, the return jumps to an impressive 13.15%. Even with reinvested dividends, the average annual total return barely reaches 1.0%. Therefore, a yield surpassing 6% presents an enticing prospect, provided it remains sustainable. With NHI a part of the Russell 3000, it holds a prestigious position among the largest 3000 U.S. companies.
Exploring Dividend Sustainability
The predictability of dividend amounts often mirrors the ebbs and flows of company profitability. NHI’s dividend history chart provides valuable insights into assessing the likelihood of ongoing dividends, thus gauging the feasibility of maintaining a 6% annual yield.
Free Report: Top 8%+ Dividends (paid monthly)
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Further Information:
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Author’s opinions expressed here do not necessarily echo Nasdaq, Inc.’s views.
