5 top dividend stocks to buy on the dip
TRANSCRIPT
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.
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%
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.
AT&T’s Dividend Increase Over The Past 10-Years
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%
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.
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%
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.
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%
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.
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%
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.
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.
The Top Dividend Stocks
for the Next Decade.