Top 10 Dividend Stocks for 2020 & Beyond - Best Dividend Stocks in 2020 | Summary and Q&A

TL;DR

Analyzing top dividend stocks historically performing well in recessions for potential investment in 2020.

Key Insights

• 🥳 Selection criteria included historical performance during economic crises, dividend coverage ratio above one, and consistent dividend payments.
• 💪 Companies like Colgate-Palmolive and Leggett & Platt demonstrated resilience and strong returns during recessions.
• ❓ Diversification across sectors like consumer staples, consumer discretionary, and industrial sectors was emphasized for a balanced investment portfolio.
• ↩️ The importance of reinvesting dividends for maximizing returns from dividend-paying stocks.
• ⚾ The potential for dividend-paying stocks to perform well in economic downturns based on historical data.
• 🛀 Stocks like McCormick and Wal-Mart from the consumer staples sector showed consistent performance during past crises.
• 🚙 Utility companies like Consolidated Edison provided stability and dividends, making them attractive for risk-averse investors.

Transcript

Hi I'm Jimmy in this video I'm going to walk through the 10 best dividend paying stocks that should do well going into 2020. Even if the stock market crashes. So what I did is I took the dividend aristocrats ETF that ticker symbol NOBL and I looked at the total return for each of the 57 companies that are in that ETF and I examined the total return... Read More

Questions & Answers

Q: How were the 10 dividend-paying stocks selected for potential investment?

The stocks were chosen based on their historical performance during economic downturns such as the Great Recession and the tech bubble. Companies with strong total returns and consistent dividend payments were prioritized.

Q: What is a dividend coverage ratio, and why is it important for investors?

A dividend coverage ratio compares a company's profits to the dividends it pays out. A ratio higher than one indicates that the company can cover its dividend payments, which is crucial for sustainable dividends.

Q: How did consumer staples companies like Colgate-Palmolive and Hormel Foods perform during economic crises?

Consumer staples companies like Colgate-Palmolive and Hormel Foods showed resilience during recessions, posting positive total returns thanks to the consistent demand for their products.

Q: What sectors were represented in the selection of dividend-paying stocks for 2020?

The stocks included companies from consumer staples, consumer discretionary, and industrial sectors, showcasing a diversified portfolio for potential investment in the upcoming year.

Summary & Key Takeaways

• Identified 10 dividend-paying stocks with strong returns during the Great Recession and the dot com bubble.

• Criteria included a dividend coverage ratio above one and consistent dividend payments.

• Companies in various sectors like consumer discretionary, consumer staples, and industrial sectors were evaluated.