7 Top Dividend Stocks That Pay Me $1,100 Per Month

Summary

This video offers an in-depth look at seven top dividend-paying stocks that the presenter personally holds in their portfolio. It covers important statistics, including dividend rates and payout ratios, and explains why these companies are attractive for long-term investment. The script discusses the stability and growth potential of companies like Home Depot, Procter & Gamble, and PepsiCo, as well as the appeal of ETFs like Schwab's SCHD. Additionally, it highlights the benefits of diversification and the use of platforms like MooMoo for investment analysis.

Takeaways

• 📈 There are many dividend-paying stocks available, but not all are the same. The video covers seven top ones in the creator's portfolio, including their dividend rates and key statistics.
• 💡 Dividends are discretionary distributions of profits paid out to investors. Companies can use their profits to reinvest in the business, buy other companies, or reward shareholders.
• 🏠 Home Depot (HD) is the first stock discussed. It's a strong dividend stock with an 88% return over the last five years, a current trading price of $291.17, and a dividend yield of 2.67%.
• 🛒 Procter & Gamble (PG) is another featured stock. It has a trading price of about $150, a dividend yield of 2.42%, and a strong operating margin of 21.61%.
• 🚬 Altria (MO) has a high dividend yield of 8.35%, making it a more risky but potentially rewarding investment. The stock is trading at $44.50.
• 🏦 Bank of America (BAC) is highlighted for its resilience amid recent banking sector challenges. It has a trading price of $27.94 and a dividend yield of 3.1%.
• 🥤 PepsiCo (PEP) is discussed for its stable performance and diversified brand portfolio. It has a trading price of $183.20 and a dividend yield of 2.51%.
• 📊 The Schwab U.S. Dividend Equity ETF (SCHD) is recommended for its focus on high dividend companies, with a dividend yield of 3.61% and low expense ratio of 0.06%.
• 🏢 Realty Income Corporation (O), a REIT, offers a dividend yield of 4.75% with monthly payouts. It has a trading price of $62.65 and a long history of consistent dividend payments.
• 📉 The video emphasizes the importance of doing your own research before investing and suggests using the MooMoo app for finding high dividend stocks and managing investments.

Q & A

What is the basic definition of dividends mentioned in the script?

Dividends are a discretionary distribution of profits paid out to investors by companies that have made a revenue. A portion of this profit can be distributed back to shareholders as a reward for holding the company's stock.

Why are dividends attractive to investors, especially in uncertain times?

Dividends are attractive because they provide consistent payouts for stocks, offering a steady income stream that can be particularly appealing during times of market volatility or economic uncertainty.

What is the stock ticker for Home Depot, and what is its dividend yield?

The stock ticker for Home Depot is HD, and its dividend yield is 2.67%, which is higher than the sector average.

What is the significance of a payout ratio, and what is a good range for it?

A payout ratio indicates how much of the total net profit a company is paying out in dividends. A good range is generally under 50%, suggesting that the company is not over-allocating its profits to dividend payments.

How has Home Depot's dividend grown over the years, and what does this suggest about the company's financial health?

Home Depot has seen dividend growth for 14 years, indicating a track record of financial stability and the company's commitment to rewarding shareholders.

What is Procter & Gamble's stock ticker, and what is its current dividend yield?

Procter & Gamble's stock ticker is PG, and its current dividend yield is 2.42%.

Why is Procter & Gamble considered a stable company despite its higher payout ratio?

Procter & Gamble is considered stable due to its strong market position, significant operating margin, and consistent revenue growth, even with a payout ratio of 64.07% which suggests a commitment to shareholder rewards.

What is the stock ticker for Altria, and what makes it a potentially risky investment?

Altria's stock ticker is MO. It is considered a potentially risky investment due to its high dividend yield of 8.35% and a payout ratio of 76.78%, which may indicate that the company is paying out a large portion of its profits as dividends.

Why might an investor consider Bank of America despite recent banking industry concerns?

An investor might consider Bank of America because, despite industry concerns, it is a large, well-established bank with a dividend yield of 3.1% and a payout ratio of 27.15%, suggesting financial stability and a history of rewarding shareholders.

What is the appeal of investing in a dividend-focused ETF like the Schwab US Dividend Equity ETF (SCHD)?

The appeal of investing in SCHD lies in its ability to provide exposure to a basket of high-dividend-paying stocks, offering diversification and a current dividend yield of 3.61%, with a low expense ratio of 0.06%.

What is Realty Income Corporation's dividend yield, and why is it considered a good choice for real estate exposure?

Realty Income Corporation's dividend yield is 4.75%, making it an attractive choice for investors seeking real estate exposure due to its consistent monthly dividend payments and a portfolio of over 12,000 income-producing real estate properties.