5 Great Dividend Stocks for 2017 and Beyond! | Summary and Q&A
TL;DR
The author discusses his top five dividend stocks for long-term investors, including Apple, Coca-Cola, Proctor and Gamble, Wynn Resorts, and McDonald's.
Key Insights
- 🍉 Long-term dividend investing requires considering a company's profitability and potential for future growth.
- 💪 Apple stands out as the author's favorite dividend stock due to its potential for expanding dividends and a strong balance sheet.
- 🥳 Coca-Cola's high payout ratio may pose a risk to future dividend growth unless profitability improves.
- 🥳 Proctor and Gamble's ownership of popular brands and moderate payout ratio make it a safe dividend stock.
- ❤️🩹 Wynn Resorts is a high-end resort company with potential for increased profitability and attractive dividend payouts.
- 😋 McDonald's is a well-established fast-food chain that is expected to remain profitable and has room to increase its dividend payout.
Transcript
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Questions & Answers
Q: Why does the author consider Apple his favorite dividend stock?
The author believes that Apple will maintain or increase its profitability in the future and has a low payout ratio, indicating room for dividend expansion.
Q: What is the primary concern with Coca-Cola as a dividend stock?
Coca-Cola has a high payout ratio, meaning it pays out a large portion of its earnings in dividends, which may require improved profitability in the future to sustain dividend growth.
Q: What makes Proctor and Gamble a safe dividend stock?
Proctor and Gamble owns many popular brands, has a moderate payout ratio, and a good balance sheet, making it a safe investment for dividend income.
Q: Why is Wynn Resorts considered a good dividend stock?
Wynn Resorts is expected to remain profitable in the future and has a history of paying out large dividends. The company's recent opening of Wynn Palace is expected to significantly increase earnings.
Q: What makes McDonald's a suitable dividend stock?
McDonald's is a well-established fast-food restaurant that is expected to remain profitable. It has a relatively low payout ratio and a solid balance sheet, making it a good option for dividend investors.
Summary & Key Takeaways
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Apple is the author's favorite dividend stock, with the potential for increased profitability and a low payout ratio.
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Coca-Cola offers a high dividend yield but has a high payout ratio that may require improved profitability in the future.
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Proctor and Gamble owns many popular brands and has a moderate payout ratio, making it a safe dividend stock.
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Wynn Resorts is a high-end resort company with potential for increased profitability and a good dividend track record.
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McDonald's is a fast-food restaurant that should remain profitable and has room to increase its dividend payout.