What stocks pay the highest annual dividend?
There's no point in beating around the bush -- the S&P 500's (SNPINDEX: ^GSPC) highest-paying dividend stocks right now are Altria Group (NYSE: MO), Kinder Morgan (NYSE: KMI), and Verizon Communications (NYSE: VZ), sporting yields of 9.7%, 6.8%, and 6.6% (respectively).
- Coca-Cola (KO) Source: Coca-Cola. ...
- Chevron (CVX) Source: LesPalenik / Shutterstock.com. ...
- Schwab US Dividend Equity (SCHD) Source: iQoncept/shutterstock.com.
| Stock | Forward dividend yield |
|---|---|
| Banco Santander SA (ticker: SAN) | 3.7% |
| Lloyds Banking Group PLC (LYG) | 6% |
| Banco Bradesco SA (BBD) | 4.4% |
| Barclays PLC (BCS) | 5.2% |
| Stock | Market Capitalization | 12-month Trailing Dividend Yield |
|---|---|---|
| Ellington Financial Inc. (EFC) | $905 million | 16.5% |
| Gladstone Investment Corp. (GAIN) | $500 million | 6.9% |
| Modiv Industrial Inc. (MDV) | $112 million | 7.7% |
| LTC Properties Inc. (LTC) | $1.3 billion | 7.2% |
- Hercules Capital: 10.6% dividend yield. ...
- Ares Capital: 9.5% dividend yield. ...
- Horizon Technology: 11.1% dividend yield. ...
- Energy Transfer: 8.4% dividend yield. ...
- Enterprise Products Partners: 7.2% dividend yield.
Overall, we believe creating a dividend portfolio with 20 to 60 stocks provides a reasonable balance between the need for diversification, a desire to keep trading activity low, and a limited amount of research time to devote to maintaining a portfolio.
| Ticker | Name | Dividend Safety |
|---|---|---|
| ENB | Enbridge | Safe |
| EPD | Enterprise Products Partners | Safe |
| WHR | Whirlpool | Borderline Safe |
| VZ | Verizon | Safe |
However, there are a lot of safe dividend stocks out there. Kinder Morgan (KMI -0.22%), Equinix (EQIX 0.45%), and Lockheed Martin (LMT 0.68%) are three super-safe dividend stocks because they generate contractually secured cash flow and have strong financial profiles.
The ex-dividend date is the first day the stock trades without its dividend, thus ex-dividend. If you want to get the dividend payment, you need to own the stock by this day. That means you have to buy before the end of the day before the ex-dividend date to get the next dividend. In other words, it's the cut-off date.
| Symbol | Name | Dividend Yield |
|---|---|---|
| SPYI | NEOS S&P 500 High Income ETF | 12.62% |
| RYLD | Global X Russell 2000 Covered Call ETF | 12.37% |
| SARK | AXS Short Innovation Daily ETF | 12.31% |
| XRMI | Global X S&P 500 Risk Managed Income ETF | 12.29% |
Are dividend stocks worth it?
There are a couple of reasons that make dividend-paying stocks particularly useful. First, the income they provide can help investors meet liquidity needs. And second, dividend-focused investing has historically demonstrated the ability to help to lower volatility and buffer losses during market drawdowns.
- PLUG4.020.12% Plug Power Inc.
- OPEN3.060.09% Opendoor Technologies Inc.
- PTON4.680.16% Peloton Interactive, Inc.
- FNMA1.460.15% Federal National Mortgage Association.
- TLRY1.700.06% Tilray Brands, Inc.
- BITF2.670.16% Bitfarms Ltd.
- TELL0.870.05% Tellurian Inc.
- WULF2.010.17% TeraWulf Inc.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Oracle Fin.Serv. | 8301.80 |
| 2. | APL Apollo Tubes | 1582.65 |
| 3. | Bharat Electron | 215.20 |
| 4. | Astral | 2100.25 |
The Coca-Cola Company ( KO ) pays dividends on a quarterly basis. The next dividend payment is planned on April 1, 2024 .
Stanley Black & Decker: 146 years of consecutive payouts
Among publicly traded industrial stocks, none has a longer streak of paying consecutive dividends, with Stanley Black & Decker doling out payouts to investors since 1876.
| Stock (ticker) | Dividend Yield |
|---|---|
| Lockheed Martin Corporation (LMT) | 2.9% |
| McDonald's Corporation (MCD) | 2.3% |
| Automatic Data Processing, Inc. (ADP) | 2.2% |
| Microchip Technology Incorporated (MCHP) | 2.0% |
If you're looking for a stock to buy in March, you should start your search with dividend payers NextEra Energy (NYSE: NEE), Enterprise Products Partners (NYSE: EPD), and Stanley Black & Decker (NYSE: SWK). They will each appeal to different types of investors, but they all offer very attractive stories today.
A dividend is typically a cash payout for investors made quarterly but sometimes annually. Stocks and mutual funds that distribute dividends are generally on sound financial ground, but not always. Stocks that pay dividends typically provide stability to a portfolio but may not outperform high-quality growth stocks.
The truth is that most investors won't have the money to generate $1,000 per month in dividends; not at first, anyway. Even if you find a market-beating series of investments that average 3% annual yield, you would still need $400,000 in up-front capital to hit your targets.
At recent prices, shares of Altria Group (NYSE: MO), Ares Capital (NASDAQ: ARCC), and AT&T (NYSE: T) offer an average yield of 8.5%. This means you can secure $1,000 of annual-dividend income by investing about $11,765 spread evenly among them.
How much invested to make $1,000 a year in dividends?
At recent prices, they offer an average yield of 8.4%. Image source: Getty Images. About $11,900 spread evenly among these stocks is enough to secure $1,000 in annual dividend income.
Verizon Communications Inc. (NYSE:VZ), 3M Company (NYSE:MMM), and Dow Inc. (NYSE:DOW) are some of the most prominent dividend stocks in the DJIA.
Yes, KO has paid a dividend within the past 12 months. How much is Coca-Cola's dividend? KO pays a dividend of $0.48 per share. KO's annual dividend yield is 3.09%.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Kesar India | 3713.15 |
| 2. | Sical Logistics | 217.15 |
| 3. | SG Mart | 514.45 |
| 4. | Jai Balaji Inds. | 1218.15 |
One downside to investing in stocks for the dividend is an eventual cap on returns. The dividend stock may pay out a sizable rate of return, but even the highest yielding stocks with any sort of stability don't pay out more than ~10% annually in today's low interest rate environment, except in rare circ*mstances.
