6 HIGH YIELD Dividend Stocks To Buy Now!

TL;DR

This video discusses six high yielding dividend stocks that could be considered for investment, emphasizing the importance of dividend safety, payout ratios, and dividend growth streaks.

Transcript

• So in this video today we are going to be talking about six high yielding dividend stocks that you may want to consider investing in as a dividend investor looking for income from their portfolio right now. And if you guys aren't familiar, I started this process of building up a $100,000 dividend stock portfolio at the beginning of this year for ... Read More

Key Insights

• ✋ Dividend safety is crucial in selecting high yielding dividend stocks to avoid potential dividend cuts or suspensions.
• 🥳 Factors such as payout ratios, dividend growth streaks, and industry stability contribute to assessing dividend safety.
• ✋ Stocks like 3M, IBM, and Walgreens Boots Alliance offer a balance of high dividend yields and safety.
• ✋ Higher yielding dividend stocks carry more risks, especially when operating in cyclical industries or dealing with challenges like oil crises.
• ✋ Leggett & Platt, Exxon Mobil, and AT&T are examples of higher yielding dividend stocks that may have dividend safety concerns.
• 🥳 AT&T's high payout ratio and limited growth prospects make it a potentially risky investment.

Questions & Answers

Q: What is the importance of considering dividend safety when investing in high yielding dividend stocks?

Dividend safety ensures that the company can maintain or increase dividend payments over time. It involves analyzing payout ratios, dividend growth streaks, and the stability of the company's earnings. This is crucial to avoid dividend cuts or suspensions.

Q: Why is 3M considered a top high yielding dividend pick?

3M is a dividend aristocrat with a 61-year consecutive dividend growth streak. Their payout ratio is currently at 73%, indicating they can afford their dividend. Additionally, the company is well-diversified across various industries, making it a reliable investment choice.

Q: What are the risk factors associated with investing in higher yielding dividend stocks?

Higher yielding dividend stocks, such as Leggett & Platt, Exxon Mobil, and AT&T, carry higher risks. They often have higher payout ratios, which may not be sustainable in the long term. Additionally, the industries they operate in, such as consumer cyclical or oil, can be susceptible to economic downturns.

Q: Why is AT&T's safety score relatively low despite being a dividend aristocrat?

AT&T has a high payout ratio of 108% and took on significant debt after the Time Warner merger. This creates concerns about the company's ability to sustain its dividend. With limited growth potential and saturated market conditions, there is a risk of dividend restructuring.

Summary & Key Takeaways

• The video presents six high yielding dividend stocks for investors looking for income from their portfolios.

• It emphasizes the need to consider dividend safety, payout ratios, and dividend growth streaks when selecting stocks.

• Three stocks with high dividend safety ratings are 3M, IBM, and Walgreens Boots Alliance.

• Three stocks with higher dividend yields and potential risks are Leggett & Platt, Exxon Mobil, and AT&T.