Amazing Dividends & Low Debt – PERFECT COMBO

We love our dividend stocks.

But the real goal, when picking a dividend stock, is to make sure their payouts keep hitting our bank account!

A lot can determine whether those payments keep coming or not.

Companies need to have low payout ratios, so if earnings fall, the dividend doesn’t drop with it.

Companies also need to grow.  Without growth, our payments will become flat and get reduced by inflation.

But, do you know what often gets overlooked?  Debt!

There are so many reasons why companies with high debt are bad news, especially for dividends.

Companies with high debt pay a lot of interest.  And with interest rates up over the last few years, this is a BIG ISSUE!

I want more money going to ME rather than to a bank!

Plus, a lot of debt can hang over a company’s head.

Creditors can start bugging a company and threaten to ask for their money back, especially if the creditors don’t like what management is doing.

And what’s best for creditors isn’t always going to be best for dividend investors like us!

Plus, companies with high debt are less likely to survive a tough economy.

So why not completely remove these issues from the equation and find companies with little debt?

Here’s a list.  And even better, these companies have excellent dividend yields:

Company #1 – 

One of my favorites is T. Rowe Price (TROW).  It’s an asset manager with over $1.5 trillion in assets under management.

T. Rowe has a dividend yield over 5% and has increased its dividend payments for 39 straight years!

And its debt is miniscule.

Its debt as a percentage of assets is below 4%.  T. Rowe Price’s dividend yield is higher than its debt percentage!

Company #2 –

Low debt and high yield isn’t the only great part of Robert Half (RHI), one of the largest staffing and accounting firms in the world.

Robert Half has increased its dividend for 22 consecutive years.

And Robert Half’s dividend is growing double digits every year!

Let’s not forget why we’re here though.

Robert Half currently has a dividend yield of 4.9% and its debt as a percentage of assets is only 8%.

And the best part about Robert Half?  Its next dividend is May 23rd!

Company #3 – 

Another great option is Chord Energy (CHRD), which is an oil & gas exploration company.

Unlike the others on the list, Chord Energy pays a variable dividend, which changes every quarter based on performance.

Performance has been excellent for Chord Energy as its dividend yield is an amazing 7%.

And Chord Energy’s debt is super low!

Debt as a percentage of the company’s assets is only 6%.

T. Rowe Price, Robert Half, and Chord Energy are just a few companies with little debt and high dividends.

Are there other low-debt companies you like?

I want to know your list!

Michael Jennings, Editor
Dividend Stocks Research

Category: Dividend Stocks To Buy?