The Best Dividend Stocks to Buy in 9 Sectors

 

Get a mix of passive income and capital gains from these relevant companies

 

 


Although some folks on Wall Street may deny it, I believe there’s overwhelming evidence of a disconnect between investment market valuations and the real economy. Still, that doesn’t mean you can’t profit from the irrational enthusiasm. Better to go with the train than against it. However, at some point, the ride will likely end. When it does, you’ll be glad to have owned dividend stocks.

 

Sure, these investments aren’t as sexy as the growth names that have generated wild headlines and even wilder performance metrics. However, the mania is reminiscent of the late 1990s/early 2000s dot-com bubble. At the time, merely mentioning the word “internet” aroused intense buyer sentiment. However, the fundamentals came around and rudely ended the party. The same can happen here, which is why you should consider dividend stocks.

 

With scheduled payouts along with the possibility of capital gains, dividend stocks provide some measure of confidence in this uncertainty. As well, companies that pay dividends tend to be fiscally stable – after all, the passive income must come from somewhere. Therefore, should volatility impact the broader markets, these organizations usually mitigate the storm better than growth firms.

 

 

 

 

As you dive deeper into the details of this novel coronavirus-driven crisis, the case for dividends only gets stronger. With Congress deadlocked on another round of coronavirus relief, millions of Americans face a bleak future. For instance, eviction moratoriums have expired in several areas, possibly forcing countless shell-shocked households onto the streets.

 

Also, the expiration of the federal program designed to bolster state unemployment checks – the so-called “plus up” – puts millions of others in dire straits. For our elected officials, saving the American people should be a no-brainer. But because we’re going to play politics until everyone dies, here are nine dividend stocks to consider:

 

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20 Dividend Stocks to Fund 20 Years of Retirement

 

Each of these high-quality dividend stocks yields roughly 4%, and you can expect them to grow their payouts even more. That's a powerful 1-2 combo for retirement income.

 


The traditional retirement wisdom used to be the "4% rule." You would withdraw 4% of your savings in the first year of retirement, followed by "pay raises" in each subsequent year to account for inflation. The idea? If you're invested in a mix of dividend stocks, bonds and even a few growth equities, your money should last across a 30-year retirement.

 

But today's world is different. Interest rates and bond yields have been driven into the ground, reducing future expected returns. Exacerbating the problem: Americans are living longer than ever before.

 

If you're wondering how to retire without facing the uncomfortable decision of what securities to sell, or questioning whether you are at risk of outliving your savings, wonder no more. You can lean on the cash from dividend stocks to fund a substantial portion of your retirement. Indeed, Simply Safe Dividends has even provided an in-depth guide about living on dividends in retirement.

 

Many companies in the market yield 4% or more. And if you rely on solid dividend stocks for that 4% annually, you won't have to worry as much about the market’s unpredictable fluctuations. Better still, because you likely won't have to eat away at your nest egg as much, you'll have a better chance of leaving your heirs with a sizable portfolio when the time comes.

 

 

 

 

Here are 20 high-quality dividend stocks, yielding on average well above 4%, that should fund at least 20 years of retirement, if not more. Each has paid uninterrupted dividends for more than two decades, has a fundamentally secure payout and has the potential to collectively grow its dividends to protect investors' purchasing power over time.

 

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3 Big Dividend Stocks Yielding Over 8%; Raymond James Says ‘Buy’


Investment firm Raymond James has released its July performance recap, summing up the fourth month of the economic recovery. The firm notes that the early weeks of this recovery cycle showed a V-shaped turnaround for the economy, which has since slowed, taking a “treading water” patter. Raymond James sees defensive stock plays in a strong position, as they have somewhat outperformed since the second week of June.

 

Raymond James strategist Tavis McCourt sees the slowing pattern as predictable, and linked to the pace of Congressional action on recovery stimulus packages. McCourt writes, “With D.C. negotiating another package, it is likely that high frequency economic data will decelerate in early August before another round of stimulus is signed, but the market clearly believes the likelihood is that more direct support at similar scale is likely through the election.”

 

 

 

 

This makes defensive stocks part of a consistent strategy, to keep returns coming in for reinvestment. With this in mind, we used TipRanks database to pull up the stats on three stocks that Raymond James analysts have tapped as buying propositions. These are stocks with a specific set of clear attributes, that frequently indicate a strong defensive profile: a high dividend yield -- over 8%; and a considerable upside potential.

 

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The Kiplinger Dividend 15: Our Favorite Dividend-Paying Stocks


These 15 dividend stock picks, satisfying income investing needs of every kind, have so far kept their payouts intact while many big firms have cut back.



Income investors love dividend stocks for their regular payouts; any stock-price appreciation is just gravy. The Kiplinger Dividend 15, the list of our favorite dividend-paying stocks, delivers on the first front, yielding 3.7%, on average, compared with a 1.9% yield for Standard & Poor's 500-stock index and a paltry 0.7% yield for the 10-year Treasury bond.

However, after a long string of outperformance, our list has come up a little shy over the past 12 months. While several of our Kiplinger 15 components have put up double-digit returns despite the bear market, the overall 3.4% average total return is roughly 3 percentage points behind the S&P 500. Moreover, chaos in the energy patch has prompted us to jettison one member.

But there is some good news.

For one, none of the members of the Kiplinger Dividend 15 has cut or suspended its dividend this year. In most years, that wouldn't be news. But in response to the pandemic, more than 60 S&P 500 firms and dozens of other companies have shored up cash by cutting or suspending their dividends.



Also, many of our stocks – which were richly valued when we discussed them last fall – have lost some of their froth. And perhaps most salient for dividend investors looking for new holdings, drops in price help bolster a stock's yield; as a result, several yields in the Dividend 15 are well above 4%.

Let's take a look at the Dividend 15. We divide these payers into three categories: stocks with a long history of stable dividends, stocks with the potential for rapid growth in their payouts, and high yielders. Find a dividend stock that suits your needs, or select a mix.



3 Dividend Stocks To Buy For Second Half Of 2020 For Coronavirus Safety


Stocks climbed in morning trading on the last day of the second quarter to finish off what has been a wild three-month stretch for the market. The tech-heavy Nasdaq has returned to new highs and the S&P 500 has come somewhat near its pre-coronavirus levels. Despite the impressive run for the market, fears about spikes in Covid-19 cases in the parts of the U.S. have some on Wall Street nervous.

Politicians in states such as California, Texas, Arizona, and elsewhere have reversed some reopening plans, as Disney (DIS - Free Report) postpones the reopening its California park and Apple (AAPL - Free Report) shuts down more stores. That said, stocks surged Monday on the back of better-than-expected pending home sales, which helped highlight May’s economic comeback from what appears to be rock-bottom in April.

The Dow, the S&P 500, and the Nasdaq are all finishing up their best quarter in years, but June marked a major slowdown and a return to some volatility. In fact, the S&P 500 has moved almost completely sideways in June but is still up over 37% since March 23.

It’s unclear where the market will go if the coronavirus spikes and constant negative headlines continue. However, the political will for a second broad-based lockdown likely isn’t there unless things get far worse. Plus, Wall Street is ready to remain in don’t fight the Fed mode.



With all this in mind, let’s dive into three stocks with solid dividend yields that appear ready to continue to weather the coronavirus economic downturn in the second half of 2020…  Continue reading …