What dividend stocks are a buy right now?
You can retire on dividends. To do so, you generally need to start investing in dividend-paying assets early and reinvest the dividends until you retire.
- Exxon Mobil XOM.
- Johnson & Johnson JNJ.
- Verizon Communications VZ.
- Altria Group MO.
- Comcast CMCSA.
- Medtronic MDT.
- Duke Energy DUK.
- Starbucks SBUX.
| Company (ticker) | Analysts' consensus recommendation score | Analysts' consensus recommendation |
|---|---|---|
| ServiceNow (NOW) | 1.49 | Strong Buy |
| Assurant (AIZ) | 1.50 | Strong Buy |
| Howmet Aerospace (HWM) | 1.50 | Strong Buy |
| Insulet (PODD) | 1.50 | Strong Buy |
| Stock | Forward yield | Implied upside* |
|---|---|---|
| Johnson & Johnson (JNJ) | 3.3% | 20.2% |
| Merck & Co. Inc. (MRK) | 2.4% | 8.6% |
| Chevron Corp. (CVX) | 4.2% | 35.9% |
| Cisco Systems Inc. (CSCO) | 3.4% | 49.7% |
- ARMOUR Residential REIT – 20.7%
- Orchid Island Capital – 17.8%
- AGNC Investment – 14.8%
- Oxford Square Capital – 13.7%
- Ellington Residential Mortgage REIT – 13.2%
- SLR Investment – 11.5%
- PennantPark Floating Rate Capital – 10%
- Main Street Capital – 7%
You can retire on dividends. To do so, you generally need to start investing in dividend-paying assets early and reinvest the dividends until you retire.
The choice between the two depends on your risk tolerance, investment goals, and time horizon. While bonds can provide more predictable income and stability, dividend-paying stocks can offer growth potential and higher income over the long term.
PepsiCo has an impressive track record of increasing its dividend for 50 consecutive years. This consistent dividend growth, combined with the company's stable business model and strong cash flow from operations makes PepsiCo a top pick for a “safe” dividend stock.
| Company | Dividend Yield |
|---|---|
| International Seaways Inc (INSW) | 11.08% |
| Angel Oak Mortgage REIT Inc (AOMR) | 10.49% |
| Seven Hills Realty Trust (SEVN) | 10.33% |
| Franklin BSP Realty Trust Inc. (FBRT) | 10.30% |
| Stock Name | Sub-Sector | Dividend Yield |
|---|---|---|
| Hindustan Petroleum Corp Ltd | Oil & Gas - Refining & Marketing | 9.06 |
| Indian Oil Corporation Ltd | Oil & Gas - Refining & Marketing | 6.90 |
| Bharat Petroleum Corporation Ltd | Oil & Gas - Refining & Marketing | 6.70 |
| Vedanta Ltd | Metals- Diversified | 6.44 |
How to make $1,000 a month in dividends?
To have a perfect portfolio to generate $1000/month in dividends, one should have at least 30 stocks in at least 10 different sectors. No stock should not be more than 3.33% of your portfolio. If each stock generates around $400 in dividend income per year, 30 of each will generate $12,000 a year or $1000/month.
| Stock | Implied Upside* |
|---|---|
| Meta Platforms Inc. (META) | 25.8% |
| Tesla Inc. (TSLA) | 4.5% |
| JPMorgan Chase & Co. (JPM) | 9.6% |
| Exxon Mobil Corp. (XOM) | 12.0% |
| Stock | Dividend yield |
|---|---|
| Enbridge Inc. (ENB) | 7.4% |
| Grupo Aeroportuario del Pacifico SAB de CV (PAC) | 4.8% |
| Tyson Foods Inc. (TSN) | 3.3% |
| Realty Income Corp. (O) | 5.6% |
| Company Name | LTP | All T/H |
|---|---|---|
| Tata Motors | 1118.3 | 1120.5 |
| TCS | 4387.85 | 4422.45 |
| SBI Life Insuran | 1750.95 | 1777.7 |
| NTPC | 396.3 | 399.5 |
At that rate, you could generate $50,000 in annual dividends. With a lower portfolio balance of $1 million, you would need to target an average yield of 5%.
To generate $5,000 per month in dividends, you would need a portfolio value of approximately $1 million invested in stocks with an average dividend yield of 5%. For example, Johnson & Johnson stock currently yields 2.7% annually. $1 million invested would generate about $27,000 per year or $2,250 per month.
Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.
- Johnson & Johnson (NYSE: JNJ) has been a favorite for income investors for decades. It's one of the biggest healthcare companies in the world with huge pharmaceutical and medtech businesses.
- Target (NYSE: TGT) has been in business since 1902. ...
- Verizon Communications (NYSE: VZ) is the newbie on the list.
| Symbol | Company name | Forward dividend yield (annual) |
|---|---|---|
| EPR | EPR Properties | 8.15% |
| APLE | Apple Hospitality REIT | 6.60% |
| O | Realty Income Corp. | 5.98% |
| MAIN | Main Street Capital Corp. | 5.82% |
“One mistake to avoid,” Cabacungan says, “is to buy a company's stock simply because it issues a high dividend.” If the company has leveraged excessive debt to fund the dividend, it could come at the expense of future profitability and hurt growth prospects.
What are the cheapest stocks that pay the highest dividends?
| Stock | Forward dividend yield* |
|---|---|
| Banco Bradesco SA (BBD) | 6.4% |
| Vodafone Group PLC (VOD) | 11.1% |
| Nokia Corp. (NOK) | 3.9% |
| Sirius XM Holdings Inc. (SIRI) | 4.1% |
Key Takeaways. Mutual fund investors who take their dividends and reinvest them are giving up income now for (hopefully) more income later on, partly because they rely on the power of compounding. With a growth fund, your fund company invests in growth stocks that are more likely to increase in value over time.
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.
| Company (ticker) | Dividend Yield |
|---|---|
| UnitedHealth Group Incorporated (UNH) | 1.6% |
| Broadcom Inc. (AVGO) | 1.5% |
| Caterpillar, Inc. (CAT) | 1.5% |
| Selective Insurance Group, Inc. (SIGI) | 1.5% |
| Stock | Trailing annual dividend yield |
|---|---|
| Boston Properties Inc. (BXP) | 6.4% |
| Crown Castle Inc. (CCI) | 6.5% |
| Verizon Communications Inc. (VZ) | 6.6% |
| Altria Group Inc. (MO) | 8.5% |
