Because of rising interest rates, high-yield dividend stocks are worth less. That’s because they’re seen as bond proxies. Additionally, rising interest rates also increase borrowing costs, which would be a drag on companies, particularly ones that have large debt levels.
In the last week, we added to a high-yield dividend stock, Medical Properties Trust (NYSE:MPW) in our RRSP retirement account.
The healthcare REIT is experiencing more headwind than rising interest rates.
Read MoreWow, I can’t believe I just spent about 5 hours yesterday preparing the information to be handed to my accountant for income tax reporting. Though, I’m grateful that I had all the information I needed at my finger tips with the help of modern day technology — computer, internet, and spreadsheets!
I still managed to buy a couple of dividend stocks last week. Although we love juicy dividends, we don’t restrict ourselves from not buying a dividend stock because it pays a below-market yield, as long as its total return potential is attractive. One dividend stock we just bought was OpenText (TSX:OTEX)(NASDAQ:OTEX).
OpenText is a global company that provides enterprise information management (“EIM”) services. Below is a snapshot of the tech company. It forecasts that its addressable market is growing 8% and it has a large customer base.
I’m not an economic expert. It’s impossible for me to filter all the macro factors and how they impact each of my stock holdings. Thankfully, there’s a way to still get good returns on my stock investments.
One powerful tool is the financial information that’s available at our fingertips for anyone with access to the internet. You can dig out a company’s annual report and look at the trends of the key metrics. FAST Graphs provides a more useful graphical representation of this information.
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