5 top dividend stocks to buy on the dip

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5 Top Dividend Stocks to Buy on the Dip

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Page 1: 5 Top Dividend Stocks to Buy on the Dip

5 Top Dividend Stocks to

Buy on the Dip

Page 2: 5 Top Dividend Stocks to Buy on the Dip

4 Reasons To Love Dividend Stocks

Historically, dividend stocks have outperformed non-dividend stocks.

Reliable dividend stocks can provide a steady income stream, despite market volatility.

Dividend stocks often have higher quality earnings.

Dividends can grow and compound over time –thus boosting shareholder returns.

Page 3: 5 Top Dividend Stocks to Buy on the Dip

AT&T (NYSE: T)

• AT&T pays an annual dividend of $1.84 per share.

• The stock is trading around $34 a share today or more than 5% below its 52-week high.

Dividend Yield:

5.23%

Page 4: 5 Top Dividend Stocks to Buy on the Dip

Why AT&T?

• AT&T is one of the leading companies in the telecom industry when it comes to profitability, with a net margin of 14.26%.

• Over the past decade, the telecom giant has increased shareholder value by steadily raising its dividend (Chart on next slide).

• AT&T has a dividend growth rate of 2.12% over the past 3-years, which is better than the industry average of just 1% during that time.

Page 5: 5 Top Dividend Stocks to Buy on the Dip

AT&T’s Dividend Increase Over The Past 10-Years

Page 6: 5 Top Dividend Stocks to Buy on the Dip

General Electric (NYSE: GE)

• GE pays an annual dividend of $0.88 per share.

• The stock is trading around $26 a share today or more than 5% below its 52-week high.

Dividend Yield:

3.28%

Page 7: 5 Top Dividend Stocks to Buy on the Dip

Why General Electric?

• GE is a much stronger company than it was in early 2009 when it slashed quarterly dividends as much as 68%.

• The conglomerate is successfully diversifying its revenue streams away from financial services and back into industrial operations.

• GE boasts a dividend yield of 3.28%, which is above both the industry average and that of the S&P 500.

Page 8: 5 Top Dividend Stocks to Buy on the Dip

Chevron (NYSE: CVX)

• Chevron pays an annual dividend of $4.28 per share.

• The stock is trading around $122 a share today or more than 4% below its 52-week high.

Dividend Yield:

3.49%

Page 9: 5 Top Dividend Stocks to Buy on the Dip

Why Chevron?

• Chevron has increased its dividend payout every year since 1988 – earning it a spot as one of the Dow’s top dividend aristocrats today.

• Chevron has a strong balance sheet, as it is one of the least leveraged companies in the oil and gas sector.

• The company pays out just 35% of its profits in dividends today, which is reasonable given the huge amounts of capital required in this industry.

Page 10: 5 Top Dividend Stocks to Buy on the Dip

Procter & Gamble (NYSE: PG)

• P&G pays an annual dividend of $2.57 per share.

• The stock is trading around $79 a share today or more than 7% below its 52-week high.

Dividend Yield:

3.22%

Page 11: 5 Top Dividend Stocks to Buy on the Dip

Why Procter & Gamble?

• P&G is one of the most reliable dividends today, as the company has paid a dividend every year since its founding in 1890 (That’s 124 years of uninterrupted cash in shareholder’s pockets).

• The conglomerate has increased its payout for the past 58 consecutive years.

• As a market leader with 25 individual billion-dollar brands under its umbrella, Procter & Gamble should be able to continue raising its dividend for years to come.

Page 12: 5 Top Dividend Stocks to Buy on the Dip

Clorox (NYSE: CLX)

• Clorox pays an annual dividend of $2.96 per share.

• The stock is trading around $88 a share today or more than 8% below its 52-week high.

Dividend Yield:

3.34%

Page 13: 5 Top Dividend Stocks to Buy on the Dip

Why Clorox?

• Clorox raised its dividend 4.2% last month, while this isn’t a huge increase, it is a sustainable boost.

• Clorox has a rich history of dividend growth, as it has raised its dividend payout every year since 1977.

• The company is a market leader with popular brands like Glad, Hidden Valley, and its namesake Clorox products.

Page 14: 5 Top Dividend Stocks to Buy on the Dip

Unlocking the Power of Dividends

All of these stocks are currently trading below their 52-week highs. This makes them attractive bets for long-term income investors today. Moreover, each

of these companies is a market leader in its respective industry, which means investors can

expect compounding dividend growth for years to come.