TOP 3 DIVIDEND STOCKS TO CONSIDER INVESTING IN NOW! 🤑

TL;DR

This video discusses the best dividend stocks for 2018, including AT&T, Pfizer, and Kimberly Clark, highlighting their dividend yields, dividend coverage ratios, and their ability to pay consistent dividends.

Transcript

what's going on you guys I hope you were having a fantastic day today we're going to be talking about the best dividend stocks for 2018 now some of you may be noticing that I'm using a whiteboard here and those of you that have been following my channel for a long time know that I used to have my old whiteboard set up it's actually still back here ... Read More

Key Insights

• 🛻 AT&T, Pfizer, and Kimberly Clark are highlighted as top dividend picks for 2018 due to their consistent dividends and ability to pay them.
• 👨‍💼 AT&T is a telecommunications company with a subscription-based business model and a dividend yield of 5.4%.
• ❓ Pfizer is a pharmaceutical company with a recession-proof industry and a dividend yield of 3.7%.
• 🛻 Kimberly Clark is a consumer staples company manufacturing everyday essentials, with a dividend yield of 3.5% and the longest dividend growth streak among the picks.
• 🥳 Factors to consider in selecting dividend stocks include dividend history, dividend growth streak, dividend yield, and the dividend coverage ratio.
• ❓ The average dividend yield for the S&P 500 is around 2.2%.
• 🥳 Dividend coverage ratios between 2 and 3 are optimal, indicating that a company can afford to pay its dividend.

Questions & Answers

Q: What is the difference between income investments and growth investments?

Income investments are typically companies with stable or flat growth that pay dividends, while growth investments reinvest earnings for rapid growth and do not pay dividends.

Q: Why is the dividend coverage ratio important in assessing a company's ability to pay dividends?

The dividend coverage ratio indicates how much of a company's earnings are allocated towards dividends. Ratios below 1 suggest that a company is paying more in dividends than it earns, while ratios above 3 may indicate that a company is not sharing enough earnings with shareholders.

Q: What is the average dividend yield for the S&P 500?

The average dividend yield for the S&P 500 is around 2.2%.

Q: What are the key factors to consider when evaluating dividend stocks?

Key factors include the company's dividend history, dividend growth streak, dividend yield, and dividend coverage ratio. It is important to assess the company's ability to pay dividends consistently and whether it aligns with an investor's goals.

Summary & Key Takeaways

• The video introduces the concept of dividend stocks and explains that companies in income mode pay dividends to reward shareholders, while growth companies reinvest earnings for growth.

• It discusses the importance of calculating the dividend yield, which is the annual dividends divided by the market price, and suggests a range of 3-6% for income investments.

• The video also emphasizes the significance of the dividend coverage ratio, which is the annual earnings per share divided by the annual dividend per share, with a range of 2-3 considered optimal.