10 Stocks with Dividends That Will Make You Rich
In today's low-interest-rate environment, it's more important than ever to find stocks that pay high dividends. These stocks can provide you with a steady stream of income, and they can also help you grow your wealth over time.
Here are 10 stocks with high dividends that you should consider adding to your portfolio:
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AT&T (T): AT&T is a telecommunications giant that has been paying dividends for over 100 years. The company currently offers a dividend yield of 4.7%.
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Verizon (VZ): Verizon is another telecommunications giant that is known for its high dividend yield. The company currently pays a dividend yield of 4.4%.
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Altria Group (MO): Altria Group is a tobacco company that has been paying dividends for over 30 years. The company currently offers a dividend yield of 7.8%.
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Philip Morris International (PM): Philip Morris International is a tobacco company that has been paying dividends for over 20 years. The company currently offers a dividend yield of 5.5%.
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Chevron (CVX): Chevron is an oil and gas company that has been paying dividends for over 80 years. The company currently offers a dividend yield of 3.7%.
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Exxon Mobil (XOM): Exxon Mobil is another oil and gas company that has been paying dividends for over 80 years. The company currently offers a dividend yield of 3.9%.
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JPMorgan Chase (JPM): JPMorgan Chase is a financial services company that has been paying dividends for over 100 years. The company currently offers a dividend yield of 2.9%.
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Bank of America (BAC): Bank of America is another financial services company that has been paying dividends for over 100 years. The company currently offers a dividend yield of 2.6%.
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Procter & Gamble (PG): Procter & Gamble is a consumer goods company that has been paying dividends for over 100 years. The company currently offers a dividend yield of 2.3%.
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Johnson & Johnson (JNJ): Johnson & Johnson is a healthcare company that has been paying dividends for over 90 years. The company currently offers a dividend yield of 2.5%.
These are just a few of the many stocks that offer high dividends. If you're looking for a way to generate income and grow your wealth, consider investing in these stocks.
Factors to Consider When Investing in High-Dividend Stocks
When investing in high-dividend stocks, there are a few factors to consider:
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Dividend yield: The dividend yield is the annual dividend per share divided by the current stock price. A higher dividend yield means that you will receive more income for each dollar invested.
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Dividend payout ratio: The dividend payout ratio is the percentage of earnings that a company pays out as dividends. A high payout ratio means that the company is not reinvesting as much of its earnings in its business. This can be a sign that the company is not growing or that it is facing financial difficulties.
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Dividend growth rate: The dividend growth rate is the rate at which a company's dividend is increasing over time. A higher dividend growth rate means that you will receive more income in the future.
It's important to consider all of these factors when investing in high-dividend stocks. By doing so, you can increase your chances of finding stocks that will provide you with a steady stream of income and grow your wealth over time.
Benefits of Investing in High-Dividend Stocks
There are a number of benefits to investing in high-dividend stocks, including:
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Income generation: High-dividend stocks can provide you with a steady stream of income. This can be especially helpful if you are retired or nearing retirement.
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Wealth growth: Over time, the dividends you receive from high-dividend stocks can be reinvested to purchase more shares. This can help you grow your wealth exponentially.
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Tax advantages: Dividends from high-dividend stocks are eligible for the dividend tax rate, which is lower than the ordinary income tax rate. This can save you money on taxes.
Risks of Investing in High-Dividend Stocks
There are also some risks to consider when investing in high-dividend stocks, including:
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Dividend cuts: Companies can cut their dividends at any time. This can lead to a decrease in your income and a loss of value in your investment.
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Interest rate risk: High-dividend stocks are more sensitive to interest rate changes than other types of stocks. When interest rates rise, the value of high-dividend stocks can fall.
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Company risk: High-dividend stocks are subject to the same risks as other stocks, such as bankruptcy and financial difficulties.
It's important to weigh the benefits and risks carefully before investing in high-dividend stocks. By doing so, you can make an informed decision about whether or not these stocks are right for you.
How to Find High-Dividend Stocks
There are a number of ways to find high-dividend stocks, including:
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Use a stock screener: There are a number of stock screeners available online that can help you find high-dividend stocks. These screeners allow you to filter stocks by dividend yield, dividend payout ratio, and dividend growth rate.
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Read financial publications: Financial publications often publish lists of high-dividend stocks. These lists can be a good starting point for your research.
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Talk to a financial advisor: A financial advisor can help you find high-dividend stocks that meet your specific investment goals.
By following these tips, you can find high-dividend stocks that can help you generate income, grow your wealth, and reduce your taxes.
Table 1: High-Dividend Stocks with a Yield of 4% or More
Company |
Symbol |
Dividend Yield |
AT&T |
T |
4.7% |
Verizon |
VZ |
4.4% |
Altria Group |
MO |
7.8% |
Philip Morris International |
PM |
5.5% |
Chevron |
CVX |
3.7% |
Exxon Mobil |
XOM |
3.9% |
Table 2: High-Dividend Stocks with a Payout Ratio of Less Than 60%
Company |
Symbol |
Dividend Payout Ratio |
JPMorgan Chase |
JPM |
29% |
Bank of America |
BAC |
26% |
Procter & Gamble |
PG |
54% |
Johnson & Johnson |
JNJ |
53% |
Table 3: High-Dividend Stocks with a Dividend Growth Rate of 5% or More
Company |
Symbol |
Dividend Growth Rate |
Johnson & Johnson |
JNJ |
5.6% |
Procter & Gamble |
PG |
5.2% |
Chevron |
CVX |
5.1% |
Exxon Mobil |
XOM |
5.0% |
Table 4: High-Dividend Stocks with a Strong Credit Rating
Company |
Symbol |
Credit Rating |
AT&T |
T |
A+ |
Verizon |
VZ |
A+ |
JPMorgan Chase |
JPM |
Aa3 |
Bank of America |
BAC |
A3 |
Johnson & Johnson |
JNJ |
Aaa |