I’ve written before about the importance of diversifying your portfolio to include stocks with different characteristics and industries.
For instance, I’ve also recommended investing in stocks that have a strong dividend yield, high earnings growth, low volatility, and are not tied to a particular sector.
However, the importance is not limited to stocks.
You should also consider investing in small businesses, non-corporate companies, technology companies, and other companies with a high level of diversity.
The next big thing in investing is dividend yield.
In general, the dividend yield is a measure of how much a company’s return on invested capital can be expected to be over the next 30 years.
As investors, we want to be able to receive an investment that we can invest in at a reasonable rate.
So, the yield is an important metric for investors to consider.
For example, if a company with a dividend yield of 10% and a price-to-earnings ratio of 6.8 (a company with an annualized return of 10%) can earn $100,000 in 2023, we should be able earn $200,000 ($100,0000 + $20,000 = $200K).
Dividends are not the only important investment.
The market value of a stock also has a direct impact on the dividend yields of other companies.
What if we look at the dividend earnings of the top 10 companies on the S&P 500 list?
The S≈P500 dividend yield index is based on the annualized dividend yields for companies listed on the New York Stock Exchange.
Here is the list of the ten most profitable companies on S&op: (Click to enlarge) The top ten companies on that list have a dividend income of over $1 billion per year.
These ten companies are worth a total of $3.5 trillion (in 2016 dollars).
For comparison, the top ten most valuable companies on Earth are worth only $8.7 trillion.
And for comparison sake, the S% of the U.S. economy is valued at $1.2 trillion.