In this episode I review the top 3 high yielding dividend stocks in the market today.
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Bizwebjournal here, now with the end of the coronavirus pandemic potentially in sight and the beginning of a new year right around the corner, now might be a good time for you as an investor to reconfigure your portfolio.
If you are looking to dial back on your growth holdings and add some more income-producing picks I will show you some nice dividend-paying stocks that have become bargains over the course of this year.
So if you are on the hunt for the best dividend stocks to buy now you will want to look at the 3 dividend names I have got for you sooner rather than later and here’s why.
But before we get started, if you are new to my channel please subscribe and hit that bell notification so you will know when I release more stock trading tips and make sure you stay to the end so you don’t miss out on some of these high yield dividend stocks.
Now, let’s get started with the first dividend stock which is McDonalds. Iinvesting here actually isn't a bet on fast food. You may think it's a fast-food chain but that doesn't quite describe the company's primary business model.
It's more accurate to describe MacDonalds as a real estate company that happens to lease its property portfolio almost entirely to restaurant franchisees.
Of the more than 39 thousand MacDonalds restaurants in operation as of the end of last quarter, roughly two thousand six hundred are actually owned and operated by the corporation. The rest are run by franchisees who pay franchise fees and royalties to the parent company.
Franchisees have always done the majority of the company's consumer-facing work because it's more profitable when measured by profit margins to assist restaurateurs who in turn pay for the right to use its name, MacDonalds has made a concerted effort to focus even less on ownership and more on franchising.
In 2014 the company itself owned roughly six thousand seven hundred of its restaurants, and franchisees were operating about 29.500. During this time investors have seen income and margins improve even as sales have dwindled.
Coronavirus-related shutdowns did take a toll just as they did on most companies. In some ways though, the company may be better prepared than ever for what's ahead. Same-store revenue in the United States was up by 4 point 6 percent during the third quarter and September's sales marked the best single month for the restaurant chain in nearly a decade.
The company's been forced to think creatively about promoting its products, like involving rapper Travis Scott to help sell Quarter Pounders during the big month and those relearned lessons will still apply into the foreseeable future.
The dividend yield for Macdonalds is 2.4% and as you can see the buying signals on the technical indicators look very strong for the long term investor.
The second one up is Unilever. You may not be familiar with the Unilever Group, or just Unilever as it's more colloquially called but you're probably familiar with its products. This is the company behind consumer goods like Ben and Jerry's ice cream, Dove body wash, Surf laundry detergent, Hellmann's mayonnaise and many more.
Not all of its product lines may ring a bell with you but they're plenty recognizable overseas where the U K based company does most of its business. Nearly half of last year's sales came from emerging markets alone while less than 14 percent came from North America.
This geographic spread makes Unilever a nice way to add some diversity to your portfolio with just one stock. The fact that consumers will buy these sorts of goods regardless of the economy adds another element of safety to the mix.
Unlike McDonalds, Unilever isn't a Dividend Aristocrat which are companies that have upped their dividend every year for at least 25 consecutive years. Don't let its lack of a pedigree fool you, though.
This consumer staples powerhouse raises its dividend more often than not and is positioning itself to continue doing so by adapting to more modern consumer expectations.
Last month it announced a goal of selling $1.2 billion dollars-worth of plant-based vegan meat and dairy products within the next few years and is simultaneously mulling the sale of some of its beauty and personal-care lines that aren't big growth drivers.
The dividend yield for Unilever is 3.2% and again as you can see the buying signals on the technical indicators look very strong for the long term investor.
The last dividend stock on my list is The Southern Company. It's curious. Usually, the low-risk nature of utility companies means their dividend yields are on the lower end of the market's dividend spectrum.
Their prices also ebb and flow in a way that adjusts their yields to better reflect the market's prevailing interest rates at any given time. Given how the Fed Funds Rate has been at rock-bottom lows for the better part of this year one would expect these relatively safe utility stocks to sport yields that are well below average. But that's not the case right now though. Of the three dividend payers here, Southerns yield is the highest at 4.3 percent.
It's not like Southern Company's a riskier prospect now than it was just a few months ago either, which could pressure its yield upward. Consumers may skip a trip to the mall or postpone the purchase of a new car but they typically keep the lights on by paying their monthly power bill, even when it's not easy. That dynamic has not changed this year.
The Southern Company is also into its nineteenth consecutive year of increased dividend payouts and is on its way to becoming a Dividend Aristocrat. Management probably isn't interested in breaking the streak now and starting the process all over again.
The dividend's growth hasn't been a mere pittance either. The quarterly payout of $0.355 cents per share in 2001 one has since improved to 0 point sixty four cents per share. That's a compound annual growth rate of about 3.5 percent outpacing inflation.
And again as you can see the buying signals on the technical indicators look very strong for the long term investor.
In my opinion shares of Mcdonalds, Unilever and the Southern Company represent a potential buying opportunity if you are a long-term investor. Given the strong historical dividend yield alongside multiple big money buy signals, these dividend stocks are worth a spot in a dividend-oriented portfolio.
So these are the best dividend stocks for this month, thanks for watching and make sure to watch the next stock trading videos that should show up right about now.