7 Highest Return Dividend Stocks to Buy Now

TL;DR

Avoid investing in high dividend yield stocks that have a history of crashing and cutting dividends, and instead focus on dividend stocks with strong total returns and potential for growth.

Transcript

hey bowtie nation joseph hogue here and something of a warning for dividend investors in today's video you know we love us some dividend stocks here in the nation but a lot of these are misleading investors as high yield traps that destroy your portfolio for example look at shares of great elm capital with an astonishing 14 dividend yield not bad u... Read More

Key Insights

• 🥺 High dividend yield stocks can be deceiving and lead to significant portfolio losses if not properly evaluated.
• 💗 Dividend stocks with a history of growing dividends and strong total returns over time are preferred for long-term investing.
• ↩️ Devon Energy, OneMain Holdings, Broadcom, AbbVie, The Buckle, Blackstone, and Ares Management are dividend stocks with impressive total returns and potential for continued growth.
• ☠️ Investors should consider factors such as financial health, cash flow generation, dividend growth rate, and potential for future growth when selecting dividend stocks.
• 📼 Alternative asset managers like Blackstone and Ares Management offer an opportunity for retail investors to gain exposure to a market segment typically limited to accredited investors.
• 👋 Drug makers like AbbVie tend to perform well in stock market crashes, making them a good choice for portfolio protection.
• 💪 The Buckle, although a smaller retail company, has shown strong financial performance and balance sheet strength, making it a potential diversification opportunity in the consumer discretionary sector.

Questions & Answers

Q: Why do high dividend yield stocks often lead to the destruction of investors' portfolios?

High dividend yield stocks tend to have a history of crashing and cutting dividends, wiping out the initial investment and leaving investors with a fraction of the expected yield. This is due to various factors such as poor financial health and unsustainable dividend payments.

Q: What should investors look for in dividend stocks instead of chasing the highest dividend yields?

Investors should focus on dividend stocks that have a history of growing dividends and strong total returns over time. Factors such as the company's financial health, cash flow generation, dividend growth rate, and potential for future growth should be considered.

Q: Why is Devon Energy considered a top dividend stock?

Devon Energy is considered a top dividend stock due to its leading position as an oil producer in three states, strong cash flow generation, and commitment to returning cash to shareholders. It offers a dividend yield of 8.8% and has shown a total return of 117% over the past five years.

Q: What makes Blackstone and Ares Management attractive dividend stocks?

Blackstone and Ares Management are attractive dividend stocks as they provide exposure to alternative asset management, a market segment typically limited to accredited investors. Both companies have a history of performance and offer dividend yields of 5% and 4.5%, respectively.

Summary & Key Takeaways

• Many dividend stocks with high yields can be misleading and eventually lead to the destruction of your portfolio, as they often experience significant stock price declines and dividend cuts.

• To pick dividend stocks for the best return on yield and share price, it is important to focus on companies that have a history of growing their dividends and have strong total returns over time.

• Seven dividend stocks with the best total return over the last five years are highlighted in the video, including Devon Energy, OneMain Holdings, Broadcom, AbbVie, The Buckle, Blackstone, and Ares Management.