The 5 Best Dividend Stocks In My Investment Stock Portfolio
The 5 Best Dividend Stocks In My Investment Stock Portfolio
Today I will be Discussing The 5 Best Dividend stocks that I hold within my Investment stock portfolio in my opinion, going over each of the stocks Dividend yield and seeing what score the dividend yield gets out of 6 the 5 Best stocks are ABBV Stock , AT&T Stock, KO stock, JNJ Stock & SBUX Stock.
ABBVIE (ABBV) STOCK
The first stock on my List is the company AbbVie, who are into the pharmaceuticals and biotech industry. AbbVie currently pay a 4.90% dividend yield so if you own just 1 share of AbbVie you will receive a Dividend payment of 118c every quarter with an annual dividend of $4.72 for just owning the 1 share! AbbVie gets a 3/6 dividend score rating on the simply wall st app ,the score is basically measured off what the dividend yield is, the reliability & sustainability.
With the 4.90% dividend yield the yield is higher than the bottom 25% of dividend paying companies in the US market which is 1.58%. with AbbVie's relatively high dividend yield it puts them in the top 25% of dividend payers in the US Markets where the average yield is 4.28%. So while AbbVie's dividend payments have been stable as they have only been around since 2013 so are very much a new company the have been paying dividends for less than 10 years, therefore you don't really have the trust that they will continue paying dividends consistently as you would from a dividend king or dividend aristocrat who have been paying consistent dividends for 25 years+ and 50 years +. that being said i feel personally that AbbVie are well on their way to getting to that level.
Since AbbVie have been founded they have been increasing their dividends each year, paying their first dividend back in 2013 which was for 40c per share, since then it has increased to 118c per share, so it has more than doubled the quarterly payment in 7 years which is a good sign that they will continue to grow the dividend for year's to come!
Next is the dividend coverage which means are AbbVie's dividend payouts covered by their earnings, but with a very high current payout ratio of 101.7% which is currently in the unsustainable category and not covered by their earnings! from a dividend investors point of view a healthy payout ratio should be between 35 & 50% But that being said its forecast that AbbVie payout ratio will be a much more healthy payout ratio of 44.3% meaning that their dividend payments will be well covered by their earnings.
JOHNSON & JOHNSON (JNJ) STOCK
The next stock on on the list is Johnson & Johnson who are also in the pharmaceuticals and biotech industry and also a dividend king which means they have been paying dividends for the past 50 + years JNJ Currently are paying a dividend yield of 2.71% so by owning 1 share of JNJ you would receive $1.01 every quarter and an annual payment of $4.04 for owning only 1 share of the company.
JNJ get a dividend analysis score of 5/6 with a notable divided yield of 2.71% JNJs dividend is higher than the bottom 25% of dividend payers in the US Market which average at 1.58% but is low in comparison to the top 25 US dividend payers which have an average yield of 4.28%.
JNJ have also had stable dividends paying consistently for the last 10 years! no dividend cuts or completely removing their dividend all together which is what you want to look for when investing into dividend stocks. as it gives you more reassurance that they will continue to keep on paying their dividend.
As well as the stable dividend JNJ have also been consistently growing their dividend yield each year since 2010 JNJ have been increasing their dividend by around 4/5c each year, back in 2010 the dividend payments was 49c and is now at 101c. so you can see for your self the growth of this dividend is impressive and long may it continue!
Next is the dividend coverage. Currently JNJ have a payout ratio of 66.9% Which is on the higher side, but it is well covered by the companies earnings. and in 3 years time they are forecast to have a 59.9% payout ratio, although the payout ratio has increased the dividends are still forecast to be well covered by their earnings.
COCA COLA (KO) STOCK
The next stock on on the list Coca cola Ticker symbol #KO who are in the food beverage and tobacco industry. and also a dividend king which means they have been paying dividends for the past 50 + years KO are paying a dividend yield of 3.40% so that means owning 1 share of KO you would receive 41c every quarter and an annual payment of $1.64 for owning the 1 share of the company
KO has a dividend analysis score of 5/6 with a notable divided yield of 3.40% KO's dividend is higher than the bottom 25% of dividend payers in the US Market which average at 1.58% but is low in comparison to the top 25 US dividend payers which have an average yield of 4.28%.
Coca Cola have had stable dividends paying very consistently over the last 10 years! no dividend cuts or completely removing their dividend all together which again is what you want to be looking for when investing into dividend stocks, as well as the stable dividend KO have been consistently growing their dividend yield each year since 2010 KO have been increasing their dividend each year, back in 2010 the dividend payments was 22c every quarter and is now at 41c so their dividend payment has pretty much doubled from what it was back in 2010.
Next is the dividend coverage. So are KOs dividends well covered by their earnings? the answer is yes even with Coca colas payout ratio of 75.6% Which is on the higher side, but it is well covered by the companies earnings. and in 3 years time they are forecast to have a 81% payout ratio, although the payout ratio has increased the dividends are still forecast to be well covered by their earnings.
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