You should invest in large-cap stocks with high dividends if you want to receive more dividends. These stocks have high dividend yields and relatively low P/E. Their dividend yields are generally around 3.4% or higher. Here are seven stocks with P/E ratios below 20 and dividend yields above three percent.
Microsoft
Microsoft is a high-growth stock with large capital that pays a steady dividend. Microsoft has a track record of increasing dividends and has seen its earnings per share grow at an average rate 24% per year for the past five. This stock also has a low payout rate, which is ideal for dividend stocks. It's also expected to grow its dividend by 10% each year over the next five decades.
Microsoft pays dividends every three to four months, and four times per annum. While the exact date for dividend payments varies from one month to another, it typically falls within the third of each month. Prospective investors must know this date, in order to complete the investment BEFORE ex-dividend.
Johnson & Johnson
If you're looking for a high dividend large cap stock, Johnson & Johnson is an excellent option. Johnson & Johnson has a 2.4% yield, which is more than the S&P500. It also has a solid company model and a strong name. The company is also a long-time leader in health care, and its shares typically appreciate each year. If you are looking for a stock that is growing quickly, there are other options.
Johnson & Johnson is a market leader in many health care categories. They have consistently introduced new products to their marketplace. Today, the company has a market cap of $435billion, and it generates $98billion annually in revenue. This makes it a mega-cap stock (market cap over $200 billion). It recently announced its second quarter financial results. These numbers exceeded expectations. Its revenue increased 3% year-over-year to $24 billion and its adjusted EPS jumped from $2.59 to $2.68, which is a record high.
Lowe's
Lowe's is a good stock choice for long-term income investors looking for strong stocks with a proven dividend history. The company is known for its dividend growth, low payout ratio and healthy earnings growth. Lowe's has increased its payout for 60 straight years. Low levels of debt allow the company to fund its dividend growth. Share repurchases can be made and investments in the business can be made to support future earnings growth.
Lowe's also has a Stock Advantage Direct Stock Buy Plan. This program allows investors to buy shares of Lowe’s common stock, and it also increases the holdings of existing investors. Participants have the option to automatically reinvest dividends.
Target
Target is one of the best large-cap retail stocks for dividend investors. Although Target is currently undervalued in today’s market, it has very bright growth prospects. The company has steadily increased its dividend over the past 50-years and this trend will continue into the future. Additionally, the company has seen significant increases in its profits.
Target has a clear strategy. It sells high-quality merchandise for a discount price and via digital channels. Target management believes its stores can give it an advantage over its competitors, such as Amazon and Walmart. Therefore, it has invested in supply chain logistics and renovated its stores to maximize efficiency.
FAQ
What is a mutual fund?
Mutual funds are pools or money that is invested in securities. Mutual funds provide diversification, so all types of investments can be represented in the pool. This helps reduce risk.
Professional managers manage mutual funds and make investment decisions. Some funds offer investors the ability to manage their own portfolios.
Most people choose mutual funds over individual stocks because they are easier to understand and less risky.
What is the difference of a broker versus a financial adviser?
Brokers are individuals who help people and businesses to buy and sell securities and other forms. They take care all of the paperwork.
Financial advisors are experts in the field of personal finances. They are experts in helping clients plan for retirement, prepare and meet financial goals.
Banks, insurers and other institutions can employ financial advisors. They could also work for an independent fee-only professional.
Take classes in accounting, marketing, and finance if you're looking to get a job in the financial industry. You'll also need to know about the different types of investments available.
What is a Stock Exchange?
A stock exchange allows companies to sell shares of the company. This allows investors to buy into the company. The price of the share is set by the market. It usually depends on the amount of money people are willing and able to pay for the company.
The stock exchange also helps companies raise money from investors. To help companies grow, investors invest money. Investors purchase shares in the company. Companies use their money in order to finance their projects and grow their business.
Many types of shares can be listed on a stock exchange. Others are known as ordinary shares. These are the most common type of shares. Ordinary shares are bought and sold in the open market. Prices of shares are determined based on supply and demande.
Preferred shares and bonds are two types of shares. When dividends are paid out, preferred shares have priority above other shares. If a company issues bonds, they must repay them.
How Do People Lose Money in the Stock Market?
The stock market isn't a place where you can make money by selling high and buying low. It's a place you lose money by buying and selling high.
The stock market offers a safe place for those willing to take on risk. They will buy stocks at too low prices and then sell them when they feel they are too high.
They hope to gain from the ups and downs of the market. They could lose their entire investment if they fail to be vigilant.
How do I choose an investment company that is good?
A good investment manager will offer competitive fees, top-quality management and a diverse portfolio. The type of security in your account will determine the fees. Some companies don't charge fees to hold cash, while others charge a flat annual fee regardless of the amount that you deposit. Others charge a percentage of your total assets.
It's also worth checking out their performance record. Poor track records may mean that a company is not suitable for you. Avoid low net asset value and volatile NAV companies.
It is also important to examine their investment philosophy. An investment company should be willing to take risks in order to achieve higher returns. If they aren't willing to take risk, they may not meet your expectations.
Statistics
- Even if you find talent for trading stocks, allocating more than 10% of your portfolio to an individual stock can expose your savings to too much volatility. (nerdwallet.com)
- Individuals with very limited financial experience are either terrified by horror stories of average investors losing 50% of their portfolio value or are beguiled by "hot tips" that bear the promise of huge rewards but seldom pay off. (investopedia.com)
- The S&P 500 has grown about 10.5% per year since its establishment in the 1920s. (investopedia.com)
- "If all of your money's in one stock, you could potentially lose 50% of it overnight," Moore says. (nerdwallet.com)
External Links
How To
How can I invest in bonds?
An investment fund is called a bond. They pay you back at regular intervals, despite the low interest rates. These interest rates are low, but you can make money with them over time.
There are many ways to invest in bonds.
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Directly buying individual bonds
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Buy shares from a bond-fund fund
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Investing through a broker or bank
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Investing through a financial institution.
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Investing through a Pension Plan
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Directly invest through a stockbroker
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Investing with a mutual funds
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Investing in unit trusts
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Investing in a policy of life insurance
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Private equity funds are a great way to invest.
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Investing through an index-linked fund.
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Investing in a hedge-fund.