Top 5 Dividend Stocks for the Long Run – 5 Forever Dividend Stocks | Summary and Q&A

TL;DR

In this video, Jimmy discusses his top 5 dividend stocks that offer long-term stability and the potential for increasing dividends, even during market downturns.

Key Insights

• ✋ Dividend stocks are attractive during market downturns due to higher yields.
• ❓ Dividend yield remains the same, even if stock price increases after purchase.
• 😀 AT&T, Cardinal Health, 3M, Home Depot, and Waste Management offer attractive dividend yields and stability.
• 💦 AT&T and 3M have recently experienced stock price drops, presenting buying opportunities.
• ❓ Home Depot provides both growth and stability.
• ❓ Waste Management offers a defensive dividend option.
• ❓ All companies discussed have a history of consistently increasing dividends.

Transcript

hi I'm Jimmy in this video I'm gonna walk through five of my favorite dividend stocks that we could buy and hold forever and ideally get closer to our personal goal of achieving financial freedom now I'm a bit excited about this opportunity to find good dividend stocks because I'm sure many of us know that the stock market has been on quite a tumbl... Read More

Questions & Answers

Q: Why do dividend stocks become more attractive during market downturns?

Dividend stocks become more attractive because they offer higher yields when their stock prices drop. This allows investors to receive a higher return on their investment in the form of dividends.

Q: How does the dividend yield remain the same even if the stock price increases?

The dividend yield remains the same because it is calculated based on the original purchase price of the stock. Even if the stock price increases, the investor still receives the same dividend amount, resulting in a higher yield.

Q: What factors make AT&T a good long-term dividend stock?

AT&T is considered a good long-term dividend stock because it has a high yield of 6% and a history of consistently increasing dividends. Despite recent volatility, AT&T generates enough profit to cover its dividend payments.

Q: Why is Waste Management considered a defensive dividend stock?

Waste Management is considered a defensive dividend stock because it operates in the waste management industry, which is less affected by economic downturns. Its defensive attributes make up for its lower dividend yield.

Summary & Key Takeaways

• Dividend stocks become more attractive during market downturns as they offer higher yields. The dividend yield remains the same even if the stock price increases.

• AT&T (T) is a classic dividend stock with a yield of 6%. Despite recent volatility, AT&T has consistently increased its dividends and has the potential for long-term stability.

• Cardinal Health (CAH) is a healthcare company with a 4% dividend yield. Despite the drop in stock price, Cardinal Health has a solid dividend history and earnings that can cover its dividends.

• 3M (MMM), an industrial company, offers a 4% dividend yield. The recent drop in stock price creates an opportunity for dividend investors, and 3M's dividend history suggests potential growth.

• Home Depot (HD) provides both growth and stability, with a 3% dividend yield. The recent pullback in stock price presents a buying opportunity, and Home Depot has a history of consistent dividend and profit growth.

• Waste Management (WM) offers a defensive dividend stock option with a 2% yield. While the yield is lower, Waste Management's consistent dividend growth and earnings potential make it a reliable long-term investment.