One of the most common investment strategies for earning passive income is dividend investing. Dividend investing is a strategy where you buy stocks that pay you dividends to receive regular returns from your investments. It’s a neat method to earn easy money which can be used to invest in more stocks. For those who are interested in dividend investing, check out these top-notch companies below that offer great dividends and also grow as a company.
Before I start, let me clarify some important terms in understanding dividends. The dividend yield is written in percent form and it means dividend amount per share/current share price. A dividend aristocrat is a company that has been providing constant dividends for 25 years in a row.
Dividend Aristocrats
Johnson & Johnson (JNJ):
J&J is very popular for there health products and massive operations in the pharmaceutical and medical sector. They have for 58 consecutive years increased their dividend amount and their yield is around 2.5%. While it seems like a small percentage, their dividend amounts are huge as their stock price is big.
Coca-Cola (KO):
Coca-Cola is a beverage giant that has been increasing its dividend by a whopping 59 years without fail. You may be thinking, “It just produces coca-cola, how can it increase in the long run?” The company is just more than a sugary beverage, it owns the water and juice brands - Dasani, Minute Maid, and more - to expand it. Currently, its dividend yield is around 3% and provides a decent amount of dividends.
Realty Income (O):
Realty Income is a real estate investment trust that manages tons of real estate investment portfolios and has been paying dividends for a consecutive 28 years. The most common reason why investors invest in this company is because of its awesome dividends. Currently, their yield is close to 4.6% and they take pride in giving dividends monthly which helps investors earn higher dividends as the company grows.
Enbridge (ENB):
Enbridge is a Canadian pipeline company that is known for paying investors dividends for by now 26 consecutive years. Currently, they offer a yield of 6.6% as they recently increased their dividend yield by 3%. As they continue to grow strongly, they will surely increase their dividend yield.
Texas Instruments (TXN):
Texas Instruments is a semiconductor company that specifically manufactures analog chips and embedded processors and has been increasing their dividends for a consecutive 50 years in a row. As a company, it has been growing long-term as its chips are critical for everyday use. Currently, their dividend yield is around 2.2%. While that sounds small, they actually have a huge stock price and so their dividend amounts are huge.
More Recent High Yield Dividend Companies
Enterprise Product Partners (EPD):
This company is a pipeline company that resides in the US and is known for paying dividends for a straight 23 years. Currently, they have a yield of almost 8% thanks to their financial discipline, diversified assets, and a great record for increasing payout amounts. As they continue their financial discipline, they’ll surely offer large amounts of dividends.
Clearway Energy (CWEN):
Clearway Energy is solar, wind, and gas-fired company that has recently started paying very high dividends to its investors. Currently, their yield is about 4.2%, but as they have higher sales, contributions, and projects, they are aiming to increase their dividend ratio to a whopping 8% in the future at a brisk pace.
Verizon (VZ):
Verizon is a wireless communications company that provides high-speed internet to many families, also, they are becoming quite popular through their transition to 5G. As a top tech company, they have one of the lowest debts as a company that attracts tons of investors and they have a significantly high dividend yield of 4.5%. Given that high yield, it’s a win-win stock for investors.
Apple (APPL):
As you all know, Apple is a tech giant because of its rapid growth with its amazing technologies. Now that Apple has settled in and proved its loyalty to the market, it has slowly started offering dividends with a yield of 0.7%. While that is quite small, Apple has promised to increase its dividends over time. So you might have to wait a while before Apple significantly increases its dividends.
Top Dividend Fund
The First Trust Rising Dividend Achievers ETF (RDVY):
This fund currently holds 50 stocks that have high dividends and companies that are increasing their dividend yield. Every year, it replaces its list with top dividend-yielding companies that consistently give investors quality dividends and easy money. This is one of the top dividend funds that concentrate solely on stocks that have high dividends and have quality dividends.
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