The majority of Americans are of the view that the ultimate goal is to live off the passive income and the good answer to this can be the dividend stocks. We think that dividend stocks must be incorporated in any type of portfolio for risk optimization and asset growth. I am writing this article after reading a post shared by Insider Monkey regarding Dividend stocks with huge upside and they explained dividend stocks as:
“Dividend stocks are passive investments where you will be able to collect payment on regular intervals through dividends; monthly, quarterly, annually. Historically when you invested in dividend stocks long enough, you were able to collect regular dividends and enjoyed large capital gains as well. Say for example, in early 2020 Apple’s (AAPL) dividend yield was 1.5%. If you invested during that time, you would have earned 1.5% in dividends annually, but also enjoyed capital gains of more than 100%.”
Selecting the right type of stock is appearing to be a rather challenging task due to the outbreak of the Coronavirus pandemic. Due to this reason, this is necessary to select the stock which contains dividend payment histories. Usually, hedge funds are making investments in dividend stocks just not for the reason that they require these dividends but they are considering these stocks are not overvalued and contain the potential to outperform. The key objective is to earn capital gains. Let’s move to the list of the dividend stocks with huge upside as shared by Insider Monkey. Our list starts with Chimera Investment Corporation. This company is popular dividend stock and working as a real estate company. The focus of the company is on indirect and direct investment in securities related to real estate, securities backed by residential mortgages, residential mortgage loans, and some other types of assets. In the Q3 of 2020, the GAAP net income was reported by the company equalling $1.32 per share.
The next dividend stock with huge upside is Waddell & Reed Financial Inc. This company was started in 1937 is operating as a publicly-traded firm in 1998. Since the development of the company, it is serving the financial needs of the clients for preparing their prosperous future. Recently, a merger agreement has been signed by the company with Macquarie Asset Management. According to this agreement, all the outstanding WDR shares were acquired by Macquarie at $25 per share. There is a lot more to know, which you can read directly at 10 Extreme Dividend Stocks with Huge Upside.