Retirement planning

10 high-dividend stocks and investment strategies for them

When there is talk of a potential recession and high inflation, many people are seeking for ways to enhance their investment portfolios’ income. One such way to do this is through dividends. You can obtain consistent passive income from some of the greatest companies in the economy by investing in dividend stocks or dividend ETFs.

Check out these 10 dividend stocks and learn how to invest in them for your portfolio.

How to invest in companies and funds that pay dividends

Equities that pay dividends and funds that include dividend-paying stocks are typically your two choices if you want to receive monthly dividend payments. Each one functions as follows.

Purchasing a dividend stock is identical to purchasing any other stock. To place a transaction, you’ll need a brokerage account, which is simple to get through an online broker. After setting up and funding your account, you can select the dividend stocks you want to buy. Through its research services, your broker can even be able to assist you in finding stocks with high dividends.

A dividend fund can be a better option for you if you’re unsure of which dividend stocks to select. A basket of dividend-paying companies is held by mutual funds and exchange-traded funds (ETFs) that are dividend-focused. While some of these funds concentrate on stocks with high dividend yields, others search for businesses whose dividends have been reliably paid and increased over time.

By selecting a fund, you can avoid having too much exposure to any one stock because you won’t have to bother about regularly monitoring the individual stocks in your portfolio.

Dividend-paying stocks

Information on dividends and yields is current as of October 27, 2022.

1. V.F. Corporation (VFC)

Popular clothing and footwear companies like The North Face, Timberland, and Vans are owned by V.F. Corporation. Recent sales declines for several brands and a rise in inventories, which forced the company to provide additional discounts on its goods, caused the company to struggle. For more than ten years, the business has consistently provided dividends.

yield on dividends: 7.3%

Dividend per year: $2.04

2. Devon Energy (DVN)

Devon Energy is an oil and gas company with a portfolio of oil and gas holdings in the United States. Within its peer group, the Oklahoma City-based company is concentrated on generating a competitive shareholder return.

yield on dividends: 8.4%

Dividend every year: $6.20

3. Dow Inc. (DOW)

Dow produces a variety of chemicals that are utilized in a number of different sectors. Performance materials and coatings, industrial intermediates and infrastructure, and packaging and speciality plastics are some of its categories. The Dow Company is based in Midland, Michigan.

Dividend yield is 5.9%.

Dividend per year: $2.80

4. Best Buy (BBY)

Best Buy is a shop with locations in the United States and Canada that specializes in selling technology-related goods along with home appliances like refrigerators and dishwashers. Over the past ten years, the Minnesota-based company’s store count has decreased from roughly 1,800 in 2013 to approximately 1,100 now.

yield on dividends: 5.4 %

Dividend per year: $3.52

5. Verizon Communications, number (VZ)

Verizon is a pioneer in providing technology and communication services. They offer the majority of mobile phone services in the US, together with AT&T and T-Mobile. In 2021, Verizon brought in more than $130 billion.

yield on dividends: 7.2%

$2.61 per share in dividends per year.

6. AT&T (T) (T)

Another industry leader in communications that produces strong cash flow for investors is AT&T. As it concentrates on 5G expenditures and paying down its high debt load, the corporation recently sold certain assets and nearly half of its dividend.

yield on dividends: 6.1 percent

$1.11 per share in dividends every year.

7. Intel (INTC)

The majority of the technology we use on a daily basis is powered by Intel processors, one of the top semiconductor manufacturers in the world. As it seeks to keep up with competing chip producers, the corporation plans to invest billions of dollars in new capacity. From 2015 to 2019, Intel returned roughly 90% of its free cash flow to stockholders.

yield on dividends: 5.3 percent

$1.46 per share in dividends every year

8. Philip Morris Worldwide (PM)

Outside of the United States, Philip Morris offers cigarettes and smoke-free goods in more than 180 nations. The corporation still makes a sizable profit from the sale of tobacco-related items, but it is shifting its attention more toward smoke-free products, which, although not risk-free, pose less health risks than cigarettes.

yield on dividends: 5.7 percent

$5.08 per share in dividends every year.

9. Walgreens Boots Alliance (WBA)

Retail pharmacies are run by Walgreens Boots Alliance throughout the United States, Europe, and Asia. In its fiscal year 2022, the U.S. pharmacy division administered around 35 million COVID-19 shots. The business has been paying dividends since 1989.

yield on dividends: 5.4 %

Dividend per year: $1.92

10. 3M Corporation (MMM)

Numerous goods produced by 3M are used by both consumers and enterprises. The St. Paul, Minnesota-based corporation produces a wide range of goods, including orthodontics, electronics components, building materials, and possibly its most well-known item, Scotch tape. For more than a century, 3M has continued to distribute dividend payments to shareholders.

Yield on dividends: 5.0 percent

Dividend per year: $5.96

To sum up

Stocks or ETFs that pay dividends might be a fantastic way to increase your income. Even if you reinvest those dividends, bear in mind that if you own these shares in a taxable brokerage account, you will be required to pay taxes on the income you get. You must hold the shares in a tax-advantaged account, such as an IRA or 401(k), if you wish to avoid paying taxes (k).

Before investing, make sure you thoroughly study any dividend stocks. If their business suffers, several companies with significant payouts today may be forced to reduce the payments.

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