Best Dividend Stocks To Invest In Right Now
Top dividend stocks to watch.
Dividend chasing is a risky game for investors, the higher the yield the higher the volatility.. at least thats normally the case. The best dividend stocks are companies that are growing and have a long history of profits. This way, the company can afford to pay high-yield dividends even when they are going through troubling times.
It is a common idea that you cannot have a high dividend stock and a healthy long-term investment. The stocks stated below may be exceptions to the rule. Here are our editor’s top picks of best dividend stocks:
Best Dividend Stocks
These high-yield stocks do have risk attached to them, but with such attractive yields these companies are worth a second look.
General Motors – (NYSE: GM)
The general consensus amongst investors is that the peak of auto sales in the U.S. has been reached for this cycle. Although, investors are treated to a great 4.26% dividend yield. General Motors is a company with a healthy past and a bright future.
Similar to Ford, General Motors is slowing down on pushing low-profit markets and pushing its trucks instead. Not to mention the Cadillac line of vehicles are also receiving a helping hand to grow (owned by GM).
Unlike the car market, the truck market is loyal and is vastly profitable to the manufacturer. So it is no surprise that GM is pushing its full-sized trucks. GM say that the Silverado and Sierra models will have a better profit margin in months to come.
The range of luxury automobiles that GM offers is also performing well. Luxury vehicles are important for car manufacturers like GM because the profit margin is so much greater than standard vehicles. Unlike Ford, General Motors has taken off in China and is now working to sell more cars locally in the U.S. also. Last quarter, GM had 65% coverage across America, by 2020 this is expected to reach 90%. This is thanks to General Motors upping development, releasing a new Cadillac one every six months (on average) until 2021.
For long-term investors in NYSE: GM there is hope also. It seems like General Motors is embracing autonomous vehicles to the fullest and seems to be leading the pack in driverless vehicle development. The new autonomous vehicle project, GM Cruise, will be taking in revenue via ride sharing, big data from its vehicles and transporting goods in its autonomous vehicles. SoftBank is set to invest $2.25 billion in GM Cruise.
Thanks to GM Cruise, growth in the U.S and high dividend yield, it seems that GM is one of the best long term dividend stocks right now.
Starbucks – (NASDAQ: SBUX)
Starbucks has not been performing outstandingly by a long shot. Long-term investors of the stock most likely haven’t been checking its price for the past few years.
There are a few factors that may be responsible for the underwhelming performance of the stock. The first thing that comes to mind is the founder and chairman, Howard Schultz, left the company.
Starbucks shares yield a 2.3% dividend (time of publishing), this is the highest ever dividend yield for Starbucks. In truth, Starbucks cannot be ruled out as a business as they can still come back revive growth. Starbucks still has room to grow in places like Asia, so their high yield dividend is still something to get excited about. Over the next few years, analysts expect to see Starbucks stock price to increase and earnings to grow by 13%.
It may be hard to see it now, but in the next 5-years I expect SBUX will be one of the best dividend stocks.
Verizon Communications Inc. – (NYSE: VZ)
In terms of coverage, Verizon is the larger wireless service provider in the U.S. and covers 98% of the country’s population with their 4G LTE capabilities.
Verizon’s dividend has increased by 4.5% each year over the last 10 years. Verizon comes with less risk than a biotech stock, but with similar potential gains.. Making it one of the best dividend stocks to watch.
Welltower Inc. – (NYSE: WELL)
Healthcare is currently offering a large dividend yield of 5.2%, it is trying to gain exposure in the healthcare market currently and a high dividend is their means of doing so.
Welltower is the largest publicly traded REIT (healthcare real estate investment trust) with just under 1,270 real estate properties. In recent months, Welltower has been restructuring which has taken from its bottom line. NYSE: WELL needs some growth to boost profits back up, so it is selling non-core assets.
We see Welltower expanding in Toronto, London and Manhattan, with outpatient facilities also being researched. NYSE:WELL is one of the best long term dividend stocks and also one of the top best long term dividend stocks.
AbbVie – (NYSE: ABBV)
Abbvie has a current dividend yield of 3.94%, this is very high compared to other Pharma companies. Since 2014, we have seen the dividend payout increase by 140%.
AbbVie is a high-yielding dividend stock with less risk than you would think. The company has new treatments ready to hit the market in upcoming months, such as their new Imbruvica combination drug. Once the drug goes to market, revenue will increase (expected 16% annually over the next five years).
It doesn’t stop there, AbbVie also has a low stock price right now. Trading at 11x less than expected earnings. It is unlikely for recent changes in Pharma legislation to impact AbbVie moving forward. NYSE: ABBV is one of the best long term stocks to buy.
Check out our editor’s top biotech stocks to watch right now.