Stocks that pay dividends are becoming rarer and rarer. Corporate management teams often opt to retain earnings for the sake of growth instead of returning it to shareholders. This is problematic for investors who want to see steady streams of cash flowing into their portfolios every once in a while.
What’s more, the S&P 500‘s dividend yield has fallen to a meager 1.53% per year. Luckily, individual stocks such as Automatic Data Processing (NASDAQ: ADP), Innovative Industrial Properties (NYSE: IIPR), and Merck & Co (NYSE: MRK) all have substantial yields, especially compared to that of the index. Let’s look at why they are ideal choices for dividend investors.