Skip to Content
Our Picks

High-Quality Dividend-Payers Selling at a Discount

We highlight a few of the cheapest stocks in the Morningstar Dividend Yield Focus Index.

Mentioned: , , , , , , , , ,

We don't need to convince most of our readers of the virtues of dividend investing. Especially in this low-yield environment, investors have taken renewed notice of the attractions of dividend-paying securities. 

For one, by their cash-paying nature, returns of dividend-paying stocks tend to be more predictable: When more of the total return comes from dividend payments, investors don't need to rely as much on price appreciation to get a reasonable return. And such stocks tend to be less volatile: When the bulk of a stock's total return is built with steady dividends, there's less reason for investors to focus on "market noise" such as quarterly earnings, management changes, rumored takeovers or mergers, etc.

To view this article, become a Morningstar Basic member.

Register for Free

Karen Wallace does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.