What is the safest high dividend stock?
Microsoft (NASDAQ: MSFT), Coca-Cola (NYSE: KO), Procter & Gamble (NYSE: PG), Chevron (NYSE: CVX), Home Depot (NYSE: HD), JPMorgan Chase (NYSE: JPM), and United Parcel Service (NYSE: UPS) represent their industries well and are all top dividend stocks you can count on for decades to come.
- Verizon Communications VZ.
- Johnson & Johnson JNJ.
- Philip Morris International PM.
- Altria Group MO.
- Comcast CMCSA.
- Medtronic MDT.
- Pioneer Natural Resources PXD.
- Duke Energy DUK.
| Company | Dividend Yield |
|---|---|
| Evolution Petroleum Corporation (EPM) | 8.39% |
| Eagle Bancorp Inc (MD) (EGBN) | 8.18% |
| CVR Energy Inc (CVI) | 8.13% |
| First Of Long Island Corp. (FLIC) | 7.87% |
Microsoft (NASDAQ: MSFT), Coca-Cola (NYSE: KO), Procter & Gamble (NYSE: PG), Chevron (NYSE: CVX), Home Depot (NYSE: HD), JPMorgan Chase (NYSE: JPM), and United Parcel Service (NYSE: UPS) represent their industries well and are all top dividend stocks you can count on for decades to come.
- Citigroup. Citigroup (NYSE: C) is one the cheapest stocks Buffett owns based on its forward earnings multiple of under 10.5. ...
- The Coca-Cola Company. Buffett loves The Coca-Cola Company (NYSE: KO) and its soft drinks. ...
- Marubeni. ...
- Sumitomo. ...
- Chevron.
| Dividend Stock | Current Dividend Yield* | Analysts' Implied Upside* |
|---|---|---|
| JPMorgan Chase & Co. (ticker: JPM) | 2.3% | 2.8% |
| Home Depot Inc. (HD) | 2.5% | 10.5% |
| Procter & Gamble Co. (PG) | 2.4% | 15.4% |
| Johnson & Johnson (JNJ) | 3.1% | 25.3% |
“Companies that have consistently increased their dividends tend to be more stable, higher quality businesses, which historically have weathered downturns and are more likely to have the ability to pay dividends consistently.”
- Giant U.S. cigarette maker Altria has a 9.3% yield and a business that's slowly dying.
- AT&T has a 6.7% yield, a lot of debt, and a dominant business position.
- Healthpeak Properties has a 6.6% yield and owns a diversified portfolio of medical buildings.
| Stock | Dividend yield |
|---|---|
| Pfizer Inc. (PFE) | 6.6% |
| Coca-Cola Co. (KO) | 3.3% |
| Johnson & Johnson (JNJ) | 3.4% |
| Prologis Inc. (PLD) | 3.7% |
In the end, both Coca-Cola and PepsiCo are solid dividend stocks with strong brands and loyal customer bases. The key is to choose the one that best aligns with your investment goals and risk tolerance.
Do you pay taxes on dividends?
They're paid out of the earnings and profits of the corporation. 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.
| Fund | Expense Ratio | 30-day SEC Yield |
|---|---|---|
| JPMorgan Equity Premium Income Fund (JEPAX) | 0.85% | 6% |
| Fidelity Floating Rate High Income Fund (FFRHX) | 0.72% | 8.8% |
| Baird Intermediate Bond Fund (BIMSX) | 0.55% | 4.2% |
| PGIM High Yield Fund (PBHAX) | 0.75% | 7.2% |
What Is a Good Dividend Yield? Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment. Your own investment goals should also play a big role in deciding what a good dividend yield is for you.
- ARR. ARMOUR Residential REIT Inc. 18.50. -0.07.
- ORC. Orchid Island Capital Inc. 8.72. ...
- AGNC. AGNC Investment Corp. 9.32. ...
- OXSQ. Oxford Square Capital Corp. 3.20.
- EARN. Ellington Residential Mortgage REIT. 6.77. ...
- SLRC. Solar Capital Ltd. 15.51. ...
- PFLT. PennantPark Floating Rate Capital Ltd. 11.49. ...
- MAIN. Main Street Capital Corporation. 49.13.
| 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% |
Altria Group, Inc. (NYSE:MO), AT&T Inc. (NYSE:T), and Verizon Communications Inc. (NYSE:VZ) are some of the highest-paying dividend stocks in the S&P 500 among others that are discussed below.
Over time, the cash flow generated by those dividend payments can supplement your Social Security and pension income. Perhaps, it can even provide all the money you need to maintain your preretirement lifestyle. It is possible to live off dividends if you do a little planning.
If you buy a stock one day before the ex-dividend, you will get the dividend. If you buy on the ex-dividend date or any day after, you won't get the dividend. Conversely, if you want to sell a stock and still get a dividend that has been declared, you need to hang onto it until the ex-dividend day.
| Stock | Sector | Trailing 12-month dividend yield* |
|---|---|---|
| International Business Machines Corp. (ticker: IBM) | Technology | 3.6% |
| Abbott Laboratories (ABT) | Health care | 1.9% |
| Stanley Black & Decker Inc. (SWK) | Industrials | 3.5% |
| Atmos Energy Corp. (ATO) | Utilities | 2.7% |
Dividend-paying stocks have the potential for income through dividends and capital appreciation, but they come with higher volatility and market risk. The choice between the two depends on your risk tolerance, investment goals, and time horizon.
How many dividend stocks should I own?
There is no hard and fast rule for how many dividend stocks to start a portfolio, but a good starting point is to aim for a minimum of 10. This will give you a good mix of different companies and sectors and help to diversify your risk.
Look at dividend growth
Generally speaking, you want to find companies that not only pay steady dividends but also increase them at regular intervals—say, once per year over the past three, five, or even 10 years.
Some of the highest dividend paying stocks in India are Vedanta Ltd., Hindustan Zinc Ltd, Coal India Ltd, T.V. Today Network Ltd, Bhansali Engineering Polymers Ltd, Balmer Lawrie Investment Ltd, Coal India Ltd.
Dividend Yield
Apple's annual dividend in 2021 was $0.88 ($0.22 paid quarterly). Based on Apple's stock price as of March 1, 2022 of around $163 per share, the dividend yield is approximately 0.50%.
You have to own a stock prior to the ex-dividend date in order to receive the next dividend payment. If you buy a stock on or after the ex-dividend date, you are not entitled to the next paid dividend.
