Dividends

Dividends

Key Points

  • One popular Robinhood dividend stock is a leader in the financial services industry that has differentiated itself from rivals.

  • Another is a Dividend King that's still generating growth after 135 years in business.

  • The third stock offers an attractive dividend yield and markets the world's best-selling vaccine.

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Brokerage Accounts

Many individual stock brokerage accounts provide online research and pricing information to their customers. Similar to the news sites, investors can easily find information on dividend amounts and payout dates, as well as other types of peer comparisons and screeners. An additional benefit for users of online accounts provided by a broker is the ability to tie into any current (or past) holdings from portfolios that are dividend-payers and generate additional types of personalized reports and analysis.

Motley Fool Returns

Market-beating stocks from our award-winning servi

Market-beating stocks from our award-winning service.

Stock Advisor Returns
396%
396%

S&P 500 Returns 129%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 04/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

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Cumulative Growth of a $10,000 Investment in Stock Advisor Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

Robinhood’s Dividend Reinvestment (DRIP)

If you use the dividend reinvestment feature, dividends earned will be reinvested back into the issuing stock. Robinhood will purchase fractional shares of the stock or ETF, so you don’t need to worry about the share price.

On the app, all you have to do is turn on Dividend Reinvestment Plan or “DRIP” for short.

Here’s how to enable dividend reinvestment on the Robinhood app:

  1. Go to the account tab by clicking on the person icon
  2. Click on investing 
  3. Scroll down until you see dividend reinvestment and click on it
  4. Toggle the switch to on to enable dividend reinvestment

Keep in mind, however, that Robinhood requires you to enable fractional shares to use DRIP.

LTC Properties Focuses On Senior Housing

LTC Properties Inc (NYSE:LTC) has an approximately 6% annual dividend payout that’s received by shareholders monthly.

This REIT owns about 200 properties that mostly includes seniors housing and health care facilities at an approximately 50/50 split.

Not only has it paid mostly regular dividends since the 1990s, but the stock’s value more than tripled since then. This is because senior care and other assisted living facilities are more necessary than ever in a post-coronavirus world.

The REIT continued regular cash dividend payments of $0.19 every month throughout 2020, providing a $2.28 annual payout per share.

Be aware of how complicated its profits actually are when performing your due diligence though. Its revenue depends entirely on the ability of the patients living in these facilities being able to pay the tenants so they can pay their bills.

This puts it in a precarious position, although it has the cash to buy its way out of any issues in the foreseeable future.

Conclusion

You basically have two options when it comes to earning dividends on Robinhood:

  1. You can take the cash and withdraw it or invest it on your own
  2. Or, you can use the dividend reinvestment plan, as long as you have fractional shares enabled

Robinhood’s dividend reinvestment plan is a sound way to put your dividends back to work for your portfolio.

Specialty Providers

There are a number of dividend-focused specialty resources available online for getting comprehensive information on dividends. Some of these sites are free, some have paid subscription content, and some have a combination of free and paid content. With these specialty providers, you might have access to a calendar of upcoming ex-dividend dates, as well as screeners, tools, and rankings. The Value Line Investment Survey provides a number of services to help investors select dividend stocks.

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