If you read the last post about dividend investing, you are fully aware why you need to see our analysis on the best dividend stocks right now, specifically those growing consistently and paying a quarterly dividend.
The figures related to these companies’ growths are based off their growth over the past 5 years. Could their growth in the future be completely different than what they did in the past 5 years? Yes, but the numbers do not lie. We will first talk about companies showing great growth opportunities with the dividend they have to offer.
For growth measures we measured the share price growth to the dividend growth, and developed some unexpected findings. Of these stocks, only 7 of them had higher than a 100% share price increase while also having at least a 10% increase in its dividend. These stocks were $COST, $AAPL, $MSFT, $AWK, $HD, $ITW, $SHW. These figures are great, but you cannot write off the other stocks right away…
Apple ($AAPL) and Microsoft ($MSFT) are going to jump off the screen right away, as they should. Their growths are both above a whopping 340% over the past 5 years, and they both managed to increase their dividends at least 10% in the same time. Shares of these companies are rocking and the dividends are getting rolling, what more can you ask for if you are looking to get a solid dividend and growth?
Put the Tools to Work
Home Depot ($HD) is the more you could ask for. While the share price growth is not the same as the two tech giants, 130% is still a great figure for any stock. What sets Home Depot over the edge is the growth of its dividend, an outstanding 23%. The home improvement company offers a $6.00 dividend per share, leaving shareholders with a pretty, $1.50 every quarter, while Apple holders only get $.20 each quarter. Currently at $315.40, the hefty price is worth the dividend performance if you want to see the quarterly income rise quickly.
Iron Tool Works ($ITW) also makes a case for one of the best dividend stocks, with 114% share price growth and 18.5% dividend growth. At $222, Iron Tools is almost $100 cheaper than Home Depot with almost similar growth figures. The only knack is their dividend is $1.44 less than Home Depot’s, however a dividend of $4.56 is not something to complain about. Sacrificing some dividend money may be worth it to buy Iron Tool Works over Home Depot if you can grab an extra share.
The telecommunication service industry is usually a fairly straightforward investment area, because the business plan of the industry can only vary so much over time. This is why we often do not see much movement in these stocks, but over a 5 year span there is enough time for a little change up. A popular dividend stock amongst The Common Trader writers has always been Verizon ($VZ). Only a 12% rise for the stock and a 2.4% dividend rise to pair with it is nothing to write home about, but when the stock currently costs $58, it’s something you live with. At this price you can get way more shares than you could with Home Depot or ITW, and really stack up on the $2.51 annual dividend, another attractive number.
Although, Verizon’s industry counterpart AT&T ($T), hasn’t had as peachy of a 5 years. AT&T’s stock has lost 20% of its value despite increasing its dividend 2%. Is this a huge red flag? No, especially since the stock only costs $30. But when you could have easily gained 12% investing in a similar company like Verizon, who also has a better dividend by about 40 cents, that 20% decrease will hurt over 5 years.
Despite the straightforwardness of the industry, 5G technology can propel the industry to another level. These companies connect everyday people like you and us to all the different capabilities 5G has, and as it gets used more and more, it could give these stocks a decent kick in the next couple years. Verizon has done consistent and worthwhile work with 5G already, with more on the way.
Priority in the Portfolio
Our analysis of dividends is only beginning. Today was just a look at the growth opportunities some stocks have to offer. As these posts roll in, take a look at all the stocks, not just the ones that are discussed. If you can’t put up $200+ for a dividend stock, pick ones that are right in your price range. The best part about dividend investing is that its strictly a long term move. If you don’t like something after one month or just like something better, move your money over and strengthen your portfolio while you have the time.
The next post will help to pick dividend stocks based on their P/E ratio (Market Price/Earnings) and the annual dividend that is paid. A P/E ratio tells how the stock is trading in relation to its earnings, with stronger companies falling around the 10-30 range. With greater depth in the next post, be ready to fully understand all the eye opening opportunities we have laid for investors with all different types of balances.