5 Best High Yield Dividend Stocks To Buy

TL;DR

This video discusses the top five high-yielding dividend stocks, focusing on dividend aristocrats, which have a long track record of paying and growing dividends.

Transcript

• So in this video today, we're gonna be talking about some of the best high-yielding dividends stocks in 2020. We're gonna look at a list of the top five highest-paying dividend stocks that are currently on a list of stocks known as dividend aristocrats. Now, if you're not familiar, a dividend aristocrat is a company that has not only been paying ... Read More

Key Insights

• 🎚️ Dividend aristocrats provide a level of stability and reliability in dividend payments.
• ✋ High dividend yields come with higher risk factors, such as financial instability or industry challenges.
• 😀 The oil industry faces significant risks due to declining demand and the shift towards renewable energy sources.
• 💁 Smaller companies may offer growth potential, but thorough research is necessary due to limited information availability.

Questions & Answers

Q: What is a dividend aristocrat?

A dividend aristocrat is a company that has paid and increased dividends for 25 consecutive years or more, indicating stability and growth in dividend payments.

Q: What is the risk associated with high dividend yields?

Companies offering high dividend yields often carry higher risk factors, such as financial instability, industry challenges, or decreased profitability.

Q: What are the risk factors associated with ExxonMobil?

ExxonMobil faces challenges due to low oil prices, reduced demand, and the shift towards renewable technologies. Their current payout ratio is unsustainable, increasing the risk of dividend cuts or restructuring.

Q: Why is AT&T considered a moderate-risk investment?

AT&T faces risks related to cord-cutting and its high debt load. However, their involvement in the streaming business and the rollout of 5G technology provide some bullish perspectives.

Q: What should be considered when researching smaller companies like People's United Financial?

Smaller companies often have limited information available for research. Due diligence is essential, considering factors such as market size, current earnings, and payout ratio to assess growth potential and dividend sustainability.

Q: How does Chevron compare to ExxonMobil in terms of risk?

Chevron faces similar challenges as ExxonMobil in the declining oil industry. However, Chevron's risk is considered somewhat lower due to its better asset management and historically prudent investments.

Q: What are the risk factors associated with Franklin Resources?

Franklin Resources' revenue heavily relies on asset management fees, making it vulnerable to market downturns and changing investor preferences. However, its low payout ratio indicates a lower risk of dividend cuts.

Summary & Key Takeaways

• The video discusses the concept of dividend aristocrats, which refers to companies that have paid and grown dividends for 25 consecutive years or more.

• The top five high-yielding dividend stocks discussed in the video are ExxonMobil, AT&T, People's United Financial, Chevron, and Franklin Resources.

• Each company's dividend yield, dividend growth streak, risk factors, and financial health are analyzed.