July 7, 2020

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.



July 5, 2020

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 …

July 4, 2020

Kimberly-Clark: Dividend Aristocrat With 5 Billion-Dollar Brands




The S&P 500 Index continues to recover off of its 52-week lows with an impressive rally over the past several weeks. For the year, the S&P 500 is (somewhat amazingly) down just 3%. But the investing climate is by no means clear. The U.S. officially entered a recession in February, and the coronavirus crisis is not yet over.

In times of economic uncertainty, high-quality dividend growth stocks become even more valuable. This is why we continue to favor the Dividend Aristocrats, a group of 65 stocks in the S&P 500 Index with 25+ consecutive years of dividend increases.

Kimberly-Clark (KMB) is a Dividend Aristocrat that has increased its dividend each year, for more than 40 years in a row. The company’s strong brand portfolio has had a very large impact on the company’s ability to grow its profits (and dividends) for so many years.



This article will delve more deeply into Kimberly-Clark’s 5 billion-dollar brands, as well as the company’s future growth outlook and whether the stock is a buy today.


July 2, 2020

PepsiCo: Strong Brands Lead to Long-Term Dividend Growth


The Dividend Aristocrat has raised its dividend for over 40 consecutive years. A huge portfolio of billion-dollar brands is a major reason for its success



With the potential for a second coronavirus wave, as well as concerns over a recession amid an unprecedented macroeconomic outlook, many investors are looking for stocks with a consistent track record of delivering positive returns. One such stock is PepsiCo Inc. (NASDAQ:PEP).

The company has an outstanding track record of 48 years of consecutive dividend increases, displaying a resilient business that can withstand and even keep growing throughout adverse economic conditions.

PepsiCo is a global food and beverage company that generates around $70 billion in annual sales. The company’s products include well-known brands like Pepsi, Mountain Dew, Frito-Lay chips, Gatorade, Tropicana orange juice and Quaker foods. It has 23 invidividual billion-dollar brands, which each generate $1 billion or more in annual sales.



With a proven strategy of managing its brands, we believe PepsiCo is a great stock to own for reliable, long-term returns.

Being a consumer staples company, PepsiCo’s sales are way less volatile than other sectors since households are likely to keep consuming the company’s products despite economic conditions. Everyday consumables like Quaker and Lipton are mostly recession-proof. As a result, the company has been able to grow its earnings consistently. Earnings per share has grown from $3.81 in fiscal 2010 to an estimated $5.64 for 2020. With such consistent profitability, PepsiCo has keep increasing its capital returns as well.