5 Top Dividend Stocks to Buy on the Dip

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Chevron, AT&T and General Electric are just a few of the top dividend stocks today that are trading below their 52-week high levels. This creates a buying opportunity for investors.

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5 Top Dividend Stocks to Buy on the Dip

  1. 1. 5 Top Dividend Stocks to Buy on the Dip
  2. 2. 4 Reasons To Love Dividend Stocks  Historically, dividend stocks have outperformed non-dividend stocks.  Reliable dividend stocks can provide a steady income stream, despite market volatility.  Dividend stocks often have higher quality earnings.  Dividends can grow and compound over time – thus boosting shareholder returns.
  3. 3. AT&T (NYSE: T) • AT&T pays an annual dividend of $1.84 per share. • The stock is trading around $34 a share today or more than 5% below its 52- week high. Dividend Yield: 5.23%
  4. 4. Why AT&T? • AT&T is one of the leading companies in the telecom industry when it comes to profitability, with a net margin of 14.26%. • Over the past decade, the telecom giant has increased shareholder value by steadily raising its dividend (Chart on next slide). • AT&T has a dividend growth rate of 2.12% over the past 3-years, which is better than the industry average of just 1% during that time.
  5. 5. AT&T’s Dividend Increase Over The Past 10-Years
  6. 6. General Electric (NYSE: GE) • GE pays an annual dividend of $0.88 per share. • The stock is trading around $26 a share today or more than 5% below its 52- week high. Dividend Yield: 3.28%
  7. 7. Why General Electric? • GE is a much stronger company than it was in early 2009 when it slashed quarterly dividends as much as 68%. • The conglomerate is successfully diversifying its revenue streams away from financial services and back into industrial operations. • GE boasts a dividend yield of 3.28%, which is above both the industry average and that of the S&P 500.
  8. 8. Chevron (NYSE: CVX) • Chevron pays an annual dividend of $4.28 per share. • The stock is trading around $122 a share today or more than 4% below its 52-week high. Dividend Yield: 3.49%
  9. 9. Why Chevron? • Chevron has increased its dividend payout every year since 1988 – earning it a spot as one of the Dow’s top dividend aristocrats today. • Chevron has a strong balance sheet, as it is one of the least leveraged companies in the oil and gas sector. • The company pays out just 35% of its profits in dividends today, which is reasonable given the huge amounts of capital required in this industry.
  10. 10. Procter & Gamble (NYSE: PG) • P&G pays an annual dividend of $2.57 per share. • The stock is trading around $79 a share today or more than 7% below its 52- week high. Dividend Yield: 3.22%
  11. 11. Why Procter & Gamble? • P&G is one of the most reliable dividends today, as the company has paid a dividend every year since its founding in 1890 (That’s 124 years of uninterrupted cash in shareholder’s pockets). • The conglomerate has increased its payout for the past 58 consecutive years. • As a market leader with 25 individual billion-dollar brands under its umbrella, Procter & Gamble should be able to continue raising its dividend for years to come.
  12. 12. Clorox (NYSE: CLX) • Clorox pays an annual dividend of $2.96 per share. • The stock is trading around $88 a share today or more than 8% below its 52- week high. Dividend Yield: 3.34%
  13. 13. Why Clorox? • Clorox raised its dividend 4.2% last month, while this isn’t a huge increase, it is a sustainable boost. • Clorox has a rich history of dividend growth, as it has raised its dividend payout every year since 1977. • The company is a market leader with popular brands like Glad, Hidden Valley, and its namesake Clorox products.
  14. 14. Unlocking the Power of Dividends All of these stocks are currently trading below their 52-week highs. This makes them attractive bets for long-term income investors today. Moreover, each of these companies is a market leader in its respective industry, which means investors can expect compounding dividend growth for years to come.
  15. 15. The Top Dividend Stocks for the Next Decade.

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