What are the best dividend stocks to buy and hold?
The four stocks on the NYSE or Nasdaq with the highest forward dividend yield that also trade for $25 or less as of March 2024 include Petrobras, Jiayin Group, Great Elm Capital Corp., and Angel Oak Mortgage REIT.
| Stock | Dividend yield | Dividend growth streak |
|---|---|---|
| Procter & Gamble Co. (PG) | 2.4% | 68 years |
| 3M Co. (MMM) | 6.5% | 65 years |
| Coca-Cola Co. (KO) | 3.3% | 61 years |
| Johnson & Johnson (JNJ) | 3.2% | 61 years |
| Stock | Dividend yield |
|---|---|
| Coca-Cola Co. (ticker: KO) | 3.2% |
| JD.com Inc. (JD) | 2.8% |
| CK Hutchinson Holdings Ltd. (OTC: CKHUY) | 7.0% |
| Bank of Nova Scotia (BNS) | 6.3% |
| SNo. | Top Highest Dividend Paying Stocks | Industry |
|---|---|---|
| 1 | Vedanta Ltd | Metals & Mining |
| 2 | Coal India Ltd | Power |
| 3 | Power Finance Corporation Ltd | Financial Services |
| 4 | NTPC Ltd | Power |
The four stocks on the NYSE or Nasdaq with the highest forward dividend yield that also trade for $25 or less as of March 2024 include Petrobras, Jiayin Group, Great Elm Capital Corp., and Angel Oak Mortgage REIT.
| Dividend Stock | Current Dividend Yield* | Analysts' Implied Upside* |
|---|---|---|
| Home Depot Inc. (HD) | 2.5% | 10.5% |
| Procter & Gamble Co. (PG) | 2.4% | 15.4% |
| Johnson & Johnson (JNJ) | 3.1% | 25.3% |
| Merck & Co. Inc. (MRK) | 2.4% | 10.6% |
| Stock | Market Capitalization | 12-month Trailing Dividend Yield |
|---|---|---|
| Gladstone Investment Corp. (GAIN) | $500 million | 6.9% |
| Modiv Industrial Inc. (MDV) | $112 million | 7.7% |
| LTC Properties Inc. (LTC) | $1.3 billion | 7.2% |
| Realty Income Corp. (O) | $44 billion | 6.4% |
The Bottom Line. If you plan to invest in dividend stocks, look for companies that boast long-term expected earnings growth between 5% and 15%, strong cash flows, low debt-to-equity ratios, and competitive strength moving forward.
The company is a Dividend King, meaning it has raised its shareholder payout at least once annually for a minimum of 50 years. Its current streak stands at a hard-to-conceive 62 straight years. Coca-Cola management is well aware that the dividend is a big part of the stock's attraction.
| COMPANY | SECTOR | MARKET CAP |
|---|---|---|
| Prospect Capital (PSEC) | Financial services | $ 2.6 billion |
| Paramount Resources (POU.TO) | Energy | $3.1 billion |
| Gladstone Investment (GAIN) | Financial services | $439 million |
| LTC Properties (LTC) | Real estate | $ 1.3 billion |
Which stock will boom in 2024?
| S.No. | Company | Industry/Sector |
|---|---|---|
| 1. | Tata Consultancy Services Ltd | IT - Software |
| 2. | Infosys Ltd | IT - Software |
| 3. | Hindustan Unilever Ltd | FMCG |
| 4. | Reliance Industries Ltd | Refineries |
| Company (ticker) | Dividend Yield |
|---|---|
| UnitedHealth Group Incorporated (UNH) | 1.5% |
| Caterpillar, Inc. (CAT) | 1.4% |
| Exponent, Inc. (EXPO) | 1.4% |
| Elevane Health, Inc. (ELV) | 1.3% |
Dividend King #1: The Coca-Cola Company
That customer loyalty and pricing power have led to steady compounded annual growth rates (CAGR) of 3.6% and 4.2% in its top and bottom lines, respectively, over the last five years.
Dividends can be classified either as ordinary or qualified. Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates.
Yes, there are a lot of advantages. However, there's also a price to pay for those benefits. The most obvious advantage of dividend investing is that it gives investors extra income to use as they wish. This income can boost returns by being reinvested or withdrawn and used immediately.
| Ticker | Name | 5Y Price Return |
|---|---|---|
| NVDA | NVIDIA Corp | 1855.67% |
| BLDR | Builders FirstSource Inc | 1381.82% |
| ENPH | Enphase Energy Inc | 1114.44% |
| SWAV | Shockwave Medical Inc | 893.97% |
The importance is relative and specific to each investor. If you only care about identifying which stocks have performed better over a period of time, the total return is more important than the dividend yield. If you are relying on your investments to provide consistent income, the dividend yield is more important.
Whether you want to live off dividends today or are investing for the long haul, the best way to build a dividend portfolio for steady income is to follow a simple set of risk management principles: Hold between 20 and 60 stocks to reduce company-specific risk. Roughly equal-weight each position.
Another potential downside of investing primarily for dividends is the chance for a disconnect between the business growth of a company and the amount of dividends the company pays. Common stocks are not required to pay dividends. A company can cut its dividend at any time.
| Stock | Implied Upside Over March 20 Close | Forward Dividend Yield |
|---|---|---|
| Telefonica SA (TEF) | 5.1% | 7.6% |
| Nokia Corp. (NOK) | 53.2% | 3.6% |
| Regions Financial Corp. (RF) | 11.3% | 4.9% |
| Healthpeak Properties Inc. (DOC) | 19.5% | 6.8% |
Does Coca Cola pay monthly dividends?
The Coca-Cola Company ( KO ) pays dividends on a quarterly basis. The Coca-Cola Company ( KO ) has increased its dividends for 52 consecutive years. This is a positive sign of the company's financial stability and its ability to pay consistent dividends in the future.
Monthly Dividend Stock #1: Realty Income
The most popular company on our list of monthly dividend stocks, Realty Income (O) has been in business since 1969 and is one of the best recession-proof stocks with dividends.
Investing in high-yielding dividend stocks can be a reliable means of earning a stable passive income. One has to invest around $180,000 in monthly-paying dividend stocks, which offer dividend yields of over 6.7%, to earn a monthly income of $1,000.
- Diversify your holdings of good stocks. ...
- Diversify your weighting to include five to seven industries. ...
- Choose financial stability over growth. ...
- Find companies with modest payout ratios. ...
- Find companies with a long history of raising their dividends. ...
- Reinvest the dividends.
Dividend-paying Stocks
Shares of public companies that split profits with shareholders by paying cash dividends yield between 2% and 6% a year. With that in mind, putting $250,000 into low-yielding dividend stocks or $83,333 into high-yielding shares will get your $500 a month.
