Many investors are highly appealed by high dividend paying stocks as these stocks are not only worth investing but are also helpful in retirement because their high yields provide generous income. High dividends depend upon the earnings of the concerned company and many of such companies offer a high yield in excess of 4%, and some even yield 10% or more. FinanceShed listed some Best Dividend Stocks to invest in this year and hold for the long term.
Cincinnati Financial Corp.
It is fascinating to have an income which is something more than your monthly fixed income. Many investors along with the quarterly paycheck demands for regularity, stability, and sustainability. Cincinnati Financial is a well-known dividend growth stock because it is a perfect combination of above-average yield that is 2.7% and remarkable dividend history which you won’t believe is 58 years. The dividend growth of this company is compelling as the track record is enough for investors to go for these stocks. Cincinnati is a member of the Dividend Aristocrats Index best known as a group of elite dividend stocks for companies having more than 25 years of dividend increase.
Target Corp. provides a robust 3.6 percent yield and comes third after considering Walmart and Amazon.com. Assuming a constant share price the dividend equates to a dividend yield of 4.4%. When assessing the sustainability of a company it is worth considering the cash flow statement of the business. Target Corp. has higher cash flow and this is the reason it can sustain a higher dividend payout ratio. Sales of this company are continuously increasing despite Amazon’s expansion and this backs the company for having a track record of growing quarterly payments for 50 consecutive years. This is the reason why this company is worth investing in 2019 also.
Johnson and Johnson
The biggest achievement of Johnson and Johnson is that it is one of only two AAA-rated publicly traded stocks, the other one being Microsoft, which is a great reason to have faith on the stocks of this company. This company has raised dividends for more than 5 decades and is a perfect combination of successful dividend growth, having positive and high cash flow with an extreme balance sheet safety. This company is also called a dividend king with an increase in its dividend annually for more than 50 years in a row. Johnson & Johnson generated earnings per share of 12% more than the earnings-per-share that it has generated during the previous year.
Coca Cola has been the most favorite among the dividend investors for some extraordinary reasons. The company is one of the highest yielding stocks of about 3.28 percent. Coca-cola has raised its dividend payout for 56 consecutive years in a row which makes it hard to beat in dividend paying. Also, recently Coca-cola announced that it will raise its dividend by 2.6% and has set a new program to repurchase up to 150 million shares which makes it huge amongst the consumer goods company.
However, it should be considered that not all high yield dividend stocks are safe. Here was our attempt to understand what high dividend stocks are, where stocks with high dividends can be found in the market, and how to identify which high dividends are risky.