What’s an ETF?

As a quick reminder, an exchange-traded fund (ETF) is a financial product that tracks an underlying index, sector, or asset class. If a stock were a fruit then buying an ETF is a bit like buying a fruit basket, you get many small pieces from lots of different fruits.

Many investors prefer buying ETFs because they help you easily diversify your portfolio. Buying shares of an ETF essentially means you never have to worry about picking the right stocks.

For example, let’s say that you’re bullish on the future of AI. But, you aren’t sure which company(s) will emerge as leaders in AI over the coming years and you don’t want to risk investing in the wrong companies. In this case, you could simply invest in an ETF that tracks a range of AI stocks instead of trying to handpick certain companies.

You can read more about how ETF investing works here. Now, let’s discuss Schwab US Dividend Equity ETF (SCHD).

What is SCHD?

The Schwab US Dividend Equity ETF is a passive ETF whose goal is to “track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100™ Index.” This means that SCHD tracks the top 100 biggest, most reliable dividend-paying companies in America.

Buying shares in this fund is a low-cost and tax-efficient way for investors to get access to some of the most financially stable companies that pay consistent, reliable dividends. If you buy shares in SCHD then you won’t have to worry about researching individual dividend stocks. 

Additionally, an expense ratio of 0.06% means you will only pay $0.60 in fees for every $1,000 that you invest. This is much lower than many actively managed funds. But, still not as cheap as doing your own research.

The SCHD focuses on the quality and sustainability of dividends, mainly looking for companies that increase their dividends over time. Its five biggest holdings are:

1. Cisco Systems (Nasdaq: CSCO) which makes up 4.12% of the index
2. AbbVie (NYSE: ABBV) which makes up 4.11% of the index
3. Home Depot (NYSE: HD) which makes up 4.06% of the index
4. Amgen (Nasdaq: AMGN) which makes up 4.04% of the index
5. Chevron (NYSE: CVX) which makes up 4.04% of the index

This stock-based index is most concentrated in the following five industries:

1. Financials which makes up 17.42% of the index 
2. Healthcare which makes up 15.71% of the index 
3. Consumer Staples which makes up 13.89% of the index 
4. Industrials which makes up 13.51% of the index 
5. Energy which makes up 12.84% of the index 

Should You Buy SCHD?

This depends on your investment strategy and goals. However, if you’re an investor looking to get exposure to a wide range of high-quality dividend stocks then SCHD certainly presents a good solution. This fund has a long and proven history of consistently increasing its dividend payout. 

Here’s a quick snapshot of its dividend payments over the past few years (it pays dividends quarterly):

• Q1 2024: $0.8241 per share
• Q1 2023: $0.5965 per share
• Q1 2022: $0.5176 per share
• Q1 2021: $0.5026 per share
• Q1 2020: $0.4419 per share

You can see that the fund has consistently increased its dividend payments over the years. However, there were a few quarters where dividend payments dipped (mainly, in the wake of the 2020 pandemic). 

Since 2020, SCHD’s stock price has also increased by roughly 34%. This shows the year-over-year dividend and stock appreciation growth that you can expect to experience from this fund. But, remember that past performance is not a guarantee of future results.

That said, a dividend ETF like SCHD might not be the best choice for investors with a longer time horizon. If you plan to keep your money invested for a longer period of time (say, 10 years or more) then you might be better off sticking with a regular ETF. 

Dividend ETFs Vs Stock Market ETFs

Dividend ETFs are popular for their ability to reliably pay money to investors via dividends. Some investors rely on these dividends for income. But, many investors choose to reinvest the dividends back into the fund. If your goal is long-term capital appreciation then you might be better off going with a general stock market ETF.

Stock market ETFs can often outperform dividend ETFs. For example, consider an ETF like the SPDR S&P 500 ETF Trust (Nysearca: SPY) which tracks the overall performance of the S&P 500. Or, the Fidelity NASDAQ Composite Index ETF (Nasdaq: ONEQ) which tracks tech-centric NASDAQ index. Here’s how these two ETFs have fared against the SCHD since 2020:

• SCHD: 34%
• SPY: 70%
• ONEQ: 101%

Dividend ETFs are great because they reliably pay dividends. But, they also tend to track later-stage companies whose high-growth periods are behind them. This means that they could miss out on sector-specific rallies – such as the recent artificial intelligence rally. This is why dividend ETFs can often underperform the broader market, in terms of stock price appreciation. However, keep in mind that the above returns do not factor in reinvested dividends, so it’s not entirely an apples-to-apples comparison.

Ultimately, SCHD is a great choice for investors who are looking for an ETF that reliably pays increasingly growing dividends. But, it might not be the best idea for investors who prioritize stock price appreciation and have a longer time horizon.

You can learn more about ETF investing here:

1. 5 Monthly Dividend ETFs for Income Portfolios 
2. ETFs That Short the Market
3. ETFs: Pros and Cons

I hope that you’ve found this article valuable when it comes to learning about SCHD and whether or not you should buy it. If you’re interested in learning more then please subscribe below to get alerted of new investment opportunities from InvestmentU.

Disclaimer: This article is for general informational and educational purposes only. It should not be construed as financial advice as the author, Ted Stavetski, is not a financial advisor. Ted also did not own shares of SCHD at the time of writing.

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ZIM Dividend: When Will Dividends Resume?

If you’re not familiar, ZIM is a publicly traded Israeli international cargo shipping company. According to Linerlytica, ZIM currently has the 9th largest global capacity of all shipping companies. ZIM ships containers all over the world, including between Asia, Europe, North America, and Latin America.

ZIM’s dividend receives special attention from investors because it has paid some hefty dividends in the past. ZIM’s business surged during the pandemic. In response to the company’s surging profits, it increased its dividend to as high as $17 per share at one point. But it stopped paying dividends on 4/4/2023, according to data from Nasdaq.com. 

When it comes to why ZIM stopped paying a dividend, the company cited a change in the global market conditions for shipping, as well as the eruption of the Israeli-Palestinian conflict. Only about 10% of ZIM’s business takes place in Israel. But, as an Israeli company, it still needs to watch this conflict closely.

To get a better idea of ZIM’s current financial state, I dug through its most recent earnings report (released March 13, 2024). 

ZIM’s Last Quarter

The main takeaway from ZIM’s last quarterly report is this: business seems really bad. But, that’s just because 2021 and 2022 were such profitable years. 

During 2021 and 2022, ZIM was able to charge an immense premium for shipping space. This occurred because the pandemic closed down ports around the world, limiting the shipping lanes available and causing prices to surge. As a global shipper, ZIM profited big time from this event. Since then, supply lines have opened back up and prices have dropped – something that’s apparent from ZIM’s falling revenue.

For FY 2023, ZIM reported full-year revenue of $5.156 billion and a net loss of $2.8 billion. Not great at all. However, ZIM noted that this loss was mainly driven by a non-cash impairment loss of $2.06 billion in the third quarter. 

A non-cash impairment loss occurs when the value of an asset on a company’s balance sheet decreases, but the company doesn’t actually get rid of the asset. Instead, it recognizes the decrease in value as an impairment loss. I’m not entirely sure what this impairment loss was related to. But, I know that ZIM has been investing heavily in its fleet – so this loss could be ZIM writing down the value of its existing fleet. 

Either way, almost every single financial metric was down significantly year over year:

• FY 2023 operating loss of $2.51 billion compared to operating income of $6.14 billion in FY 2022.
• Q4 2023 operating loss of $54 million, compared to operating income of $585 million in Q4 2022. 
• Q4 2023 net loss of $147 million compared to a net profit of $417 million for Q4 2022. 

ZIM Stock: Pros to Consider

Looking forward, ZIM’s management expects to secure an adjusted EBITDA of between $850 million to $1.45 billion this year. This means that ZIM should be back on a path to profitability this year, after posting a fairly rare loss in 2023.

Additionally, ZIM still had $2.69 billion cash on hand as of December 31, 2023 (per its last earnings report). This means that the company has plenty of runway to handle more losses, should that be necessary.

On another bright note, ZIM has been investing heavily into its fleet. In 2023, renewing the company’s fleet of ships was a huge priority. It delivered 24 new vehicles to its fleet, which will be more sustainable and powered by LNG. This means that ZIM will be less reliant on older, more expensive ships moving forward.

Finally, ZIM operates in an industry that I consider essential in today’s world. The world is hooked on ordering goods online and receiving them promptly. To do that, things need to be shipped around the world – and ZIM is right there to assist. However, ZIM stock is not without risk.

ZIM Stock: Risk Factors to Consider

The biggest downside to being a global shipping company is that you’re exposed to problems all around the world. All types of issues could prevent themselves. For example, if a ship gets stuck in the Suez Canal or the Francis Scott Key Bridge in Baltimore collapses then your company could be at risk. 

Risks like these can also be both direct or indirect. One of ZIM’s ships could be directly damaged. Or, it could lose revenue from a closed port. For investors, it’s important to be aware of the potential risks that come with operating on such a broad scale.

So, with all the pros and cons out of the way, what’s there to be said about the ZIM dividend?

Will ZIM Dividend Return?

I believe it’s unlikely that the ZIM dividend payments will return anytime soon. This is mainly due to the ongoing conflict in Israel. When a company announces a dividend, it usually signals two things:

1. Business is going really well
2. The company doesn’t have a better place to invest the money, so they’re just giving it back to shareholders

For ZIM, it seems as though the future is brighter ahead than 2023 was. But, I do not think that the company is so confident in the future that it will bring back its dividend just yet. If 2024 goes well then I can see them relaunching the dividend in early 2025.

However, this doesn’t mean that you shouldn’t buy ZIM stock at all. In fact, buying a stock just for its dividend is not advisable. After all, you want your money to grow over time. If you just want a monthly payment then you should explore fixed income assets, which will likely give you a higher yield.

Check out our Dividend Calculator to estimate your earnings.

On one hand, ZIM stock has underperformed the market in recent years, down 24% YTD and up just 6% over 5 years. But, this is mainly because the stock boomed over 600% during the peak of the pandemic. In my opinion, ZIM is a classic pandemic stock. Its business surged in 2021 and 2022 so the stock soared. But, in 2023, things came crashing back to reality. As of now, there’s a good chance that ZIM is getting overly punished for its lackluster performance. 

I hope that you’ve found this article valuable when it comes to learning about the ZIM dividend. If you’re interested in learning more then please subscribe below to get alerted of new articles as I write them.

Disclaimer: This article is for general informational and educational purposes only. It should not be construed as financial advice as the author, Ted Stavetski, is not a financial advisor. 

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The best companies can easily survive and thrive through the downturn. They have long histories of rewarding investors through both the thick and the thin. The blue chip companies below also pay dividends.

A steady stream of income can help whether the storm. That’s why I’ve included the dividend yields for each of these companies. So without further ado, let’s dive into the list…

Blue Chip Stocks List

Blue Chip Company Highlights

This is a big list of the best blue chip stocks. And hopefully it’s a great starting point as you research companies to invest in. Let’s take a closer look at just two of these companies. This should give more insight into what it takes to make this list…

Procter & Gamble

Procter & Gamble makes and sells many basic goods. For example… laundry detergent, toilet paper, baby diapers, paper towels, toothpaste and shampoo, just to name a few. The company has a huge portfolio of consumer brands.

No matter what happens in the market, folks buy these basic goods. If commodity prices jump, Procter & Gamble has room to raise its prices… and folks keep buying. It’s a simple and safe business model.

This has helped Procter & Gamble produce steady cashflows. As a result, its stock price tends to be less volatile than many other stocks. On top of that, it’s able to keep paying investors dividends each year. It has one of the longest track records with having paid dividends for more than 130 years in a row.

Costco

For another one of the best blue chip stocks, Costco easily makes the list. Many people love Costco for its free samples and cheap hot dogs, but there’s a lot more for investors to like. It’s a top grocery store stock that has a reliable business model and strong customer loyalty. On top of that, it’s also attracted some of the world’s best investors.

For a big stamp of approval, Warren Buffett’s right hand man, Charlie Munger, has been on Costco’s Board since 1997. He’s invested a lot of money into the company and has recently said…

I think it’s going to be a big, powerful company as far ahead as you can see. And I think it deserves its success. I think it has a good culture and a good moral ethos. And so I wish everything else in America was working as well as Costco does. Think what a blessing that would be for us all.

As another benefit for investing in Costco, investors occasionally receive extra special dividends. The last one came in 2020 and since, Costco’s cash pile has grown. So, there might be another special dividend in the not too distant future.

Final Thoughts

The companies above are some of the largest in the world. They each provide some individual diversification. That’s when looking at their products and services, as well as where they do business. But going one step further, you can buy a basket of these companies for even more diversification. The proverbial saying… don’t put all your eggs in one basket.

I hope this list of the best blue chip stocks comes in handy. The recession we’re going through is off to a rough start. It’s gut-wrenching to go through, but for prudent investors, it just provides even better investing opportunities.

If you’re looking for new investing tips and tricks, sign up for one of the best investment newsletters. They’re free and packed with insight from market experts. Here at Investment U, we strive to deliver the best research and ideas…

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These are some of the highest paying dividend stocks in the market. However, they also come with different risks. I’ve listed companies across various sectors. On top of that, if the markets continue to drop further, you’ll be able to lock in even better deals.

Without further ado, let’s dive into the list of dividend stocks…

High-Yield Dividend Stocks

Dividends During a Downturn

As the economy continues to falter, having extra income can help weather the storm. The companies above have a good history of rewarding investors. However, they’re not exempt from the tough times.

There’s always the chance of a dividend cut. Investors have pushed down the stock prices above. And that’s what helps make them high-yield dividend stocks.

To help lower risk, you can buy a basket of these dividend stocks. You can add stocks to your portfolio that operate in different industries and from around the world. For example, if one position is struggling, others can help make up the losses. And generally, it’s best not to put all your eggs in one basket. There are many other investment opportunities to consider.

If the economy continues to contract, we’ll likely see prices come down even more and higher dividend yields ahead. Although, fear is already high and now is likely a better time to buy. Trying to time the market is a fools game and research shows a systematic approach tends to work best. On top of that, if you don’t need the cash from these investments, you can reinvest the income. This is a great way to compound your returns…

Reinvesting With High-Yield Dividend Stocks

If you pick up some of these stocks, you should see a solid stream of income over the next few years. You can then put that back to work and as a result, you can collect even more income down the road. For example, if you receive an extra $10,000 this year and reinvest it at a 6% yield, you can collect an extra $600 in the following year.

Compounding your returns is a powerful concept when it comes to investing. To see how this works, checkout our free investment calculator. And for another hands on look at reinvesting, check out this free dividend reinvestment calculator.

Investing Insight From Experts

The high-yield dividend stocks above are a great place to start your investment research. However, there are thousands of different investment opportunities. And the best opportunities come and go with the markets always moving.

If you’re looking for more insight and opportunities, sign up for one of the best investment newsletters. That’s a great way to stay up-to-date with market trends. You’ll also find some of the best investing tips and tricks from market experts. Here at Investment U, we strive to deliver the best investment research and ideas…

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With many investors heading for the hills, it’s not easy to stay the course and keep buying. But going against the crowd is the only way to beat average returns. So, let’s dig into these companies and why they’re towards the top of my buy list…

Best Stocks to Buy Right Now

1. Intel (Nasdaq: INTC)
2. British American Tobacco (NYSE: BTI)
3. V.F. Corp (NYSE: VFC)
4. Stanley Black & Decker (NYSE: SWK)
5. FedEx (NYSE: FDX)
6. 3M (NYSE: MMM)

Intel

As one of the best stocks to buy right now, Intel is in the midst of a huge turnaround. It’s one of the best semiconductor companies. Over the past few years, it’s lost some ground to competitors such as Advanced Micro Devices (Nasdaq: AMD). Although, Intel is in a stronger financial position to innovate.

Intel’s largest segment is its Client Computing Group. The pandemic helped push forward a lot of demand for these products. But recently, demand has slowed down. And Intel’s other segments have helped pick up some of the slack. Its next two largest segments are Datacenter and AI, and Network and Edge.

On top of that, Intel has talked about a Mobileye IPO. By taking this autonomous driving tech company public, it can free up cash for Intel’s big expansion. The company is under new management with CEO Pat Gelsinger. And he’s pushing to build new fab capacity.

Pat Gelsinger is also personally buying shares. He recently invested close to $500,000 and it’s a good sign when a CEO further aligns interest with investors.

British American Tobacco

This investment might not be for everyone. Many investors consider it a sin stock due to the products it sells. However, it also has a reliable consumer base that leads to consistent cashflows.

There’s increased regulatory risk, but investors are rewarded with higher dividend yields. And another benefit for a tobacco company is that its revenue remains fairly stable during economic downturns. This is great for income investors and the company provides some diversification…

British American Tobacco is based in London, England and for foreign investments, there can be taxes withheld from dividend income. However, the U.K. doesn’t withhold dividend taxes for U.S. investors.

V.F. Corp

V.F. Corp is one of the smaller stocks to buy right now when looking at market cap. However, it owns some huge brands such as The North Face, Vans and Timberland.

Its diverse portfolio has helped the company produce stable cashflows. As a result, the board of directors keeps paying investors bigger dividends. V.F. Corp is a dividend aristocrat and that means it’s paid a larger dividend each year for the past 25 years in a row.

Similar to the others on this list, VF stock is down a lot over the past year. Investors are worried sales will drop as consumer spending drops. However, it’s during these downturns when some of the best buying opportunities come along. V.F. Corp should be able to weather a downturn and continue rewarding long-term investors.

Stanley Black & Decker

Stanley Black & Decker is around the same size as V.F. Corp. Although, it’s in a very different industry. Stanley Black & Decker builds industrial tools and household hardware. It also provides security products.

This company also has a long history of rewarding investors with larger dividends. It’s a dividend aristocrat and the dividend looks pretty safe. Its recent payout ratio comes in below 60%.

As one of the best stocks to buy right now, Stanley Black & Decker is also trading at a lower price. Its valuation metrics have come down and the company should easily survive through a recession.

FedEx

FedEx is a leading transportation, e-commerce and business services company. It’s focused on long-term growth and building economies of scale. FedEx delivers to more than 220 countries and territories.

Thanks to growing cashflows, FedEx has also been rewarding investors with bigger dividends each year. On top of that, the recent dividend payout ratio is low with it coming in well below 50%. This provides good wiggle room as the economy takes a hit…

The CEO of FedEx recently said that he expects the economy to enter a worldwide recession. This will put downward pressure on FedEx’s sales and profitability. Although, investors have beaten down the share price and the company should be able to continue rewarding long-term investors.

3M

3M is last on this list of the best stocks to buy right now. Investors have pushed down its share price due to litigation risk from some of its past products. And the company has roughly 60,000 different products, so it’s not new to legal troubles.

Although, fear is high for investors due to recent actions. As a result, 3M shares are likely oversold and the risk-to-reward is looking solid.

Similar to the other companies on this list, 3M has a long track record of rewarding investors. It’s also a dividend aristocrat and for long-term investors, right now might be one of the better buying opportunities.

More Investing Opportunities

There are thousands of different investments to choose from. However, I believe this list provides some of the best stocks to buy right now. All of these companies come with a different set of risks and the markets might continue to drop. So, always do your own homework, and consider both your ability and willingness to invest.

If you’re looking for more investing insight, check out these best investment newsletters. They’re packed with tips and tricks from investing experts. Here at Investment U, we strive to deliver the best investment research and ideas…

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When you buy into these dividend stocks, you’re setting yourself up for a steady stream of passive income. And with inflation running hot, that’s something we can all use right now.

With downward pressure on the economy, the valuations for these companies have come down. So, let’s take a closer look at why each of the stocks is a better buy today.

Also, at the bottom of this article, I’ve included some free investing tools. They can help you protect your investments and even show you how long it takes to double your savings. Without further ado, let’s dive in…

Dividend Stocks to Buy in September

• Qualcomm (Nasdaq: QCOM)
• Verizon (NYSE: VZ)
• British American Tobacco (NYSE: BTI)
• V.F. Corp (NYSE: VFC)
• 3M (NYSE: MMM)

Qualcomm

Market Cap: $143 billion
Dividend Yield: 2.4%

Qualcomm has the lowest dividend yield on this list. Although, the company is growing at a faster rate and has also been increasing its dividend payout at a larger clip. If this continues, the future yield based on today’s price should be much higher.

Qualcomm creates semiconductors, software and services related to wireless technologies. It also has a valuable patent portfolio for modern communication systems. For example, it owns critical patents for 5G.

One area of future growth will be in augmented reality and virtual reality. Qualcomm has announced a $100 million Snapdragon metaverse fund to focus on these technologies. The company is also partnering with Meta Platforms to help push the metaverse forward.

Verizon

Market Cap: $172 billion
Dividend Yield: 6.4%

Verizon has increased its dividends for 16 years in a row. That’s a solid track record and the company has kept it up through past downturns.

Verizon has a steady business model with its telecom services. And it’s expanding to keep customers around. For example, Verizon already provides one of the most reliable 5G networks.

Even with the upgrades to its network, investors have beaten down Verizon’s share price. Consumers are in a tough spot and it looks like it’ll get worse before it gets better. However, Verizon should be able to continue rewarding long-term investors. This makes it one of the better high-yield dividend stocks to buy in September.

British American Tobacco

Market Cap: $91 billion
Dividend Yield: 7.1%

This dividend stock might not be for everyone. Investors consider it a sin stock due to the products it sells. However, it also has a steady consumer base and this provides consistent cashflows.

There’s increased regulatory risk, but as a result, investors are rewarded with higher dividend yields. And another benefit for a tobacco company is that its revenue remains fairly stable during economic downturns. The company also provides some diversification…

British American Tobacco is based in London, England. And for foreign investments, there can be more taxes taken out of dividend income. Although, the U.K. doesn’t withhold dividend taxes for U.S. investors.

V.F. Corp

Market Cap: $16 billion
Dividend Yield: 4.8%

V.F. Corp isn’t as well-known as the other dividend stocks to buy in September. However, it owns some huge brands such as The North Face, Vans and Timberland.

This diverse portfolio has helped the company to produce stable cashflows. As a result, it’s been able to keep paying investors bigger dividends. V.F. Corp is a dividend aristocrat and that means it’s paid a higher dividend each year for the past 25 years in a row.

VF stock is down a lot over the past year. Investors are worried sales will decrease as consumers are stretched thin due to inflation. However, it’s during these downturns that present some of the best buying opportunities. V.F. Corp should be able to weather a downturn and continue rewarding long-term investors.

3M

Market Cap: $67 billion
Dividend Yield: 5.1%

3M is last on this list of the best dividend stocks to buy in September. Investors have pushed down its share price due to increased litigation risk from some of its past products. The company produces roughly 60,000 different products, so it’s not new to legal troubles.

Although, fear is high – maybe too high – with recent actions. As a result, 3M shares are likely oversold and the risk-to-reward is looking solid for this dividend stock to buy.

3M has a long track record of rewarding investors. It’s also a dividend aristocrat with many decades of raising its dividend. For long-term investors, right now might be one of the better buying opportunities.

Free Investing Tools and Expert Insight

If you’re buying into individual stocks, it can be good to set stop-losses as well. This is a way to minimize your downside risk. And to learn more, check out this free stock position size calculator.

Another important piece to investing is projecting future growth. With this investment calculator, you can see how your portfolio might grow over time. It allows you to test out different rates of return.

To unlock more investing insight, check out the best investment newsletters. They’re packed with tips and tricks from investing experts. Here are Investment U, we strive to deliver the best investing research and ideas…

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If you invest the same amount into each of these stocks, you’d have an average yield that’s above 6%. That’s more than triple the dividend yield for the S&P 500, which comes in below 2%. And when looking at other assets, along with interest rates climbing, the high-yields below are uncommon.

Going one step further, if you reinvest your dividends, you can compound your returns. This is a powerful concept and to see it first hand, check out this dividend reinvestment calculator. It’s free to use and shows how your dividends can grow each year.

Without further ado, let’s take a look at the best high-yield dividend stocks…

High-Yield Dividend Stocks List

• AT&T (NYSE: T)
• Verizon (NYSE: VZ)
• Altria Group (NYSE: MO)
• British American Tobacco (NYSE: BTI)
• 3M (NYSE: MMM)
• IBM (NYSE: IBM)

These companies come with more risk. However, the big dividends help with the overall risk-to-reward…

For example, both Verizon and AT&T operate in capital intensive industries. It costs a lot to build out telecom networks and the companies have a lot of debt on their balance sheets. And this limits their flexibility going forward, especially with interest rates climbing. Although, they also have stable cashflows to pay back debt and continue paying dividends.

Investors have beaten down these dividend stocks for various reasons. There’s downward pressure on the entire economy. However, that’s pushing up the dividend yields and creating better buying opportunities.

Based on recent market news, there’s more volatility ahead. So, it’s good to diversify and let’s take a look at some of the company highlights…

High-Dividend Company Highlights

Verizon just recently increased its dividend for the 16th year in a row. That’s a decent track record and the company has kept it up through past downturns. Verizon has a steady business model with its telecom services. And it’s expanding to keep customers around. For example, Verizon already provides one of the most reliable 5G networks.

AT&T has also been pushing into 5G and has consistent cashflows. On top of that, it has an even longer history of dividends than Verizon. But with a recent spinoff, its dividend per share has come down. Even with the lower payout, it still easily makes this list of the best high-yield dividend stocks.

Altria Group and British American Tobacco might not be for everyone. Investors consider them sin stocks due to the products they sell. However, they also have a steady consumer base and this provides consistent cashflows. There’s increased regulatory risk, but as a result, we’re compensated with higher dividend yields.

3M is another stock that investors have pushed down recently. It’s come under fire with different litigation from some of its past products. The company produces roughly 60,000 different products, so it’s not new to legal troubles. Although, fear is high – maybe too high – with recent actions. As a result, 3M shares are likely oversold and the risk-to-reward is looking pretty solid.

IBM has a long track record and is a leader with many technologies. For decades, it’s been leading with the most new U.S. patents received. Now, this doesn’t always translate to more revenue, but the company has been reorganizing to drive new sales. It’s pushing into hybrid cloud platforms and AI. And if this succeeds, IBM should be able to reward investors for many years to come.

Final Thoughts

The companies above are behind some of the best high-yield dividend stocks today. They’re all big businesses with long track records. They come with different risks, but the big dividend payouts help with overall returns.

However, there are many investment opportunities to consider today. There are some big investing trends at play. For example, check out these stocks…

• EV Charging Station Stocks
• Top Uranium Stocks
• Best Agriculture Stocks

For even more of the most recent research, check out these best investment newsletters. They’re free and packed with insight from investing experts. Our goal here are Investment U is to deliver some of the best investment research…

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Some of the richest people in history have relied heavily on dividend investing, not only for wealth building, but also for enjoyment.

John D. Rockefeller once famously said:

Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.

What to Look for When Investing in Dividends

Dividend investing is a topic we cover a lot here at Investment U. And there’s a reason for that. Dividend investing is a tried-and-true strategy that millions of investors have used to profit off long-established companies with excellent track records.

IU Einstein Marc Lichtenfeld has built a career around dividends. He believes the two main things to look for when dividend investing are cash flow and a long track record of a reliable dividend.

Cash Flow
So we as dividend investors are really only concerned with the cash that comes into the company, because it’s the cash that’s going to pay the dividend, not earnings.

Long Track Record of a Reliable Dividend with No Cuts
The other thing I look for that’s really important is a company that has a long track record of a reliable dividend, that hasn’t cut the dividend. And preferably a stock that has raised the dividend every single year.

While many investors seek out the highest dividend stocks, Marc says safety is more important than size. Just because you’ve invested in a high-yield dividend stock, does not mean that dividend is safe. Many times far from it.

Size doesn’t matter when it comes to dividend yields, because what difference does it make if you have a 20, 30 or 40% dividend yield, if the dividend gets cut or even suspended. We know that dividend size does matter for income investors. I mean you’re not going to invest in a dividend stock for a one percent yield, if you need the income. You might for other reasons if you think that the stocks going to go higher or if it’s a growth company. But if you’re investing for dividend income, you do want to see a sizable dividend.

Here are the top 25 Highest Dividend Stocks

More Dividend Investing Resources

Want more info on the highest dividend stocks? We have many exciting dividend resources for investors looking to increase their passive income.

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Highest Dividend Stocks of 2022: Final Thoughts

In conclusion, investing in dividend stocks can be an excellent strategy whether you’re looking to build wealth for today or for retirement. The earlier you get started, the better. Investing in dividend payers can take a while to payoff. However, if you’re the type of person who wants to build a solid portfolio over time, while increasing passive income….there’s no better investment than high-yield dividend stocks.

Lastly, to learn more about investing in the highest dividend stocks, trading, crypto, bonds, retirement and more, sign up for one of our free newsletters today. Just visit the best investment newsletters page and join thousands of others who are profiting from the IU Einsteins’ expertise.

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