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