5 Best Dividend Stocks for 2019 - High Dividend Stocks | Summary and Q&A

TL;DR

In this video, Jimmy presents his top five dividend aristocrats for 2019, focusing on companies with a decent yield, low PE ratio, and high dividend coverage ratio.

Key Insights

• 💗 Dividend aristocrats must have grown their dividends for at least 25 consecutive years, making them high-quality and reliable companies.
• 🙇 AT&T has potential for content creation and better multiples, thanks to its merger with Time Warner and entry into streaming video services.
• 🥺 Leggett and Platt's acquisition of Elite Comfort Solutions can lead to increased earnings per share, making it an interesting prospect.
• 🎭 Consumer staples like Kimberly-Clark tend to perform better in an economic downturn, making it a stable choice for a dividend portfolio.
• 😃 AbbVie is actively seeking its next big product after the expiration of patent protection for Humira, making it an intriguing investment opportunity.

Transcript

Hey YouTube. I'm Jimmy in this video. I'm going to go through my top five dividend aristocrats that I think could have a solid 2019 a spread out my picks among different sectors to try to help diversify our portfolio a bit. Now when I chose these companies I tried to stick with companies that have a few different features. Obviously we want a decen... Read More

Questions & Answers

Q: What are the key factors Jimmy considered when selecting these dividend aristocrats?

Jimmy focused on companies with a decent yield, low PE ratio, and high dividend coverage ratio to ensure they can continue to afford their dividends.

Q: Why did Jimmy choose AT&T as one of his top dividend aristocrats?

AT&T has a current dividend yield of 6.5%, a PE ratio of 10x (lower than the S&P 500), and a dividend coverage ratio of 2.4, indicating its ability to afford its dividends.

Q: How did Jimmy evaluate Leggett and Platt for his dividend portfolio?

Leggett and Platt have a dividend yield of almost 4%, a PE ratio less than 17x, and a dividend coverage ratio of 1.5, making it an attractive choice in the consumer discretionary sector.

Q: Why did Jimmy include Kimberly-Clark in his top five dividend aristocrats?

Kimberly-Clark, a health and hygiene company, has a dividend yield of almost 3.5%, a coverage ratio of 1.6, and a PE ratio of 17.5x. Its stability as a consumer staple makes it a valuable addition to the portfolio.

Q: What is the significance of AbbVie in Jimmy's dividend aristocrats selection?

AbbVie has a dividend yield over 4%, a coverage ratio of 1.2, and a PE ratio just short of 13x. Despite the expiration of patent protection for their biggest product, Humira, AbbVie's pipeline and potential acquisitions make it promising.

Q: Why did Jimmy choose Emerson Electric for his dividend portfolio?

Emerson Electric offers a dividend yield slightly over 3%, a coverage ratio of 1.8, and a PE ratio of 19x. Its ability to integrate acquisitions successfully and its favorable dividend make it an attractive choice.

Summary & Key Takeaways

• AT&T (T): Communication Services sector, 6.5% dividend yield, PE ratio of 10x, and dividend coverage ratio of 2.4.

• Leggett and Platt (LEG): Consumer Discretionary sector, nearly 4% dividend yield, PE ratio less than 17x, and dividend coverage ratio of 1.5.

• Kimberly-Clark (KMB): Consumer Staples sector, almost 3.5% dividend yield, PE ratio of 17.5x, and dividend coverage ratio of 1.6.

• AbbVie (ABBV): Healthcare sector, over 4% dividend yield, PE ratio just short of 13x, and coverage ratio of 1.2.

• Emerson Electric (EMR): Industrial sector, slightly over 3% dividend yield, PE ratio of 19x, and dividend coverage ratio of 1.8.