My Three Favorite Stocks With 3% Dividend Yields

       A dividend is a small portion of money that a company pays out on a monthly, quarterly or annual basis- out of their profits or cash reserves. Companies that pay dividends are typically "blue chip" stocks that are beyond their growth stage and reward investors in other ways. But a dividend stock is only considered a "good" dividend stock if they can continuously raise their dividend while maintaining a good payout ratio. Some companies pay out an unreasonably large dividend that restricts them from other business ventures ( See L Brands ).
     
1. Realty Income Corporation (O)

       Realty Income is a real estate investment trust that invests in free-standing, single-tenant commercial properties. Their companies slogan is "The monthly dividend company" .. and that's a name they live up too. They pay out a monthly dividend of $0.22 per share. They have increased their net income, assets, and revenue for the last three years. This is due to their large amount of different organizations that they have lease agreements with. Such as Walgreens, FedEx, Dollar General, and WalMart.

       The dividend which currently yields over 4.5% which has increased every year for the last 22 years. They have a payout ratio under 85%.

        Share value has also increased by 8.64% in the last year as well.
If you invested $10,000 in this stock a year ago you would have collected $506.88 in dividends. Which does not include the 8% growth this stock has seen over the last year.

2. Proctor And Gamble (PG)

        If your looking for a company that has growth potential, safety, and a juicy dividend- look no further. Proctor And Gamble is a staple of dividend investors portfolios. They have a market cap of over 200 billion and have successfully raised dividend for over 60 years. With a payout ratio under 70%, they are certainly able to continue raising the dividend.

        The company itself is one of the most recognizable brands in the world, even if you don't realize it. Chances of you have one of their products in your house is more likely than not... They own multiple brands including Olay, Pampers, Tide, Dawn, Downy, Crest, Vicks, and the list goes on and on.

       They are well diversified and have enough continuous revenue to increase on the 3% they are already yielding. Which they already announced they are doing- on Friday, during the conference call they announced they are raising the dividend by 4%.

3. Paychex (PAYX)

       Paychex is a provider of payroll, human resources and benefits outsourcing for small and medium-sized companies. They have yielded a nice 3.32% which has been increased every year since 2011. But this company is not just focused on their dividend. In the last three months, their stock has increased by 8%. They also some very nice financial statements. Their net income and revenue have increased over the last four years with a very low growth in debt.







No comments:

Post a Comment

Facebook Massive Earnings Beat

      Could Facebook's earning beat finally be the boost that tech stocks need? They are up 6% today after crushing earnings... Other co...