December 6, 2011 2 Comments
With the economy in such terrible condition and the uncertainty of how and when the government will fix it, investors should think twice about how risky they make their investments.
Investing in stocks that pay their share holders dividends has become a very popular method of trading because of its security.
Investors realize that the company can pay a dividend because they are doing well and experiencing high growth/profits.
Basically, a dividend is extra money that the company makes in profits, and they share it evenly with their shareholders almost as a reward for investing with them.
Companies with solid and consistent earnings are usually the ones that offer dividends.
Personally I suggest dividend paying stocks, and here is a list of 5 of my favorite dividend paying stocks to look into:
5. Exxon Mobil (XOM)
Exxon Mobil as we all know is an oil company that refines oil and natural gas.
It has a 2.5%yield and consists of the largest market-cap of any U.S stock. If you havent realized, Exxon has been benefiting from the extremely high oil prices.
Their share holders will remain happy as long as fossil fuel remains the worlds Energy source no matter what the price
This growth has made it possible to offer shareholders a quarterly dividend of 44 cents.
AT&T remains one of the highest yielding stocks ( pays out nice dividends) at around 6.1%.
Now the companies main growths and profits come from their mobile sector and they have been involved in a long-term struggle trying to merge with T-Mobile, but business is good and their share holders are more than likely enjoying the dividends they receive.
3. Johnson & Johnson (JNJ)
With a yield of 3.6%, Johnson & Johnson offers a variety of health care products that people will always need to purchase. Their product varies from drug development and medical supplies to baby oil and band-aids.
Consumers rely heavily on their products, and their profits/gains consistently come in every quarter.
This means they will be more than generous to their share holders and pay out some really attractive dividends.
One of the largest retailers in the United States known for its great deals makes my list. Wal-Mart has a yield of 2.6% and still pays its share holders a dividend even after struggling tremendously in this economy.
Their stock has lost value and their growth has slowed down, but not enough for them to forget about their share holders.
They have created a good impression for themselves and are attracting more and more investors considering their volume.
When someone mentions fast food, what comes to your mind right away? MCDONALDS. Even if you like Burger King better, McDonald’s is the first thing that comes to your mind.
Just this past year McDonald’s expanded their product and menu on an entire different level.
They now serve coffee at the McCafe. What better than having two products that people crave on a daily basis. Fast Food and Coffee.
You can find a McDonald’s on almost every continent, and with their consistent growth and 3% yield, they will be paying dividends to their share holders forever.
In the economy we are living in today, it is not a bad idea to look into stocks that pay out dividends.
Personally, I enjoy any type of income… Legal income obviously.