10 Dividend Stocks to Own In Good and Bad Times

This might be the best time to invest in dividend stocks, in response to a major overhaul of U.S tax laws. Companies are set to report a rise in profit on the reduction of the corporate tax rate from 35% to 21%. What this means is more money for distribution in the form of dividends and buybacks.

In addition, a cash repatriation window also paves way for multinational to bring back money stashed in foreign accounts. Choosing the right dividend stocks to generate significant income is all about options. While picking high flying growth companies is usually a no-brainer, when it comes to the dividend payment, it might not be the smartest move.

If you love dividend stocks, then the best ones are the ones that raise their payouts year-over-year. The increase usually indicates that these companies have more than enough cash to sustain hefty payouts.

Here are some of the best dividend stocks to watch out in 2018

Johnson & Johnson: 2.4% Yield

Very few companies can match Johnson & Johnson (NYSE:JNJ) credentials as a rock-solid dividend stock. The healthcare powerhouse accords investors a yield of 2.4%. The solid dividend yield is supported by powerhouse brands touching on consumer level products, pharmaceuticals, and medical devices.

The company has returned an average of 15% over the last ten years. In addition to being a good dividend stock, it continues to outperform the capital markets. Its share price was up by more than 15% last year.

Cisco: Hefty Cash Balance

Cisco Systems, Inc. (NASDAQ:CSCO) is one of the companies that is set to benefit from the U.S tax overhaul. The company is set to repatriate a good chunk of its cash from abroad, under the tax reform plan. In addition, the company has more than $70 billion in cash.

Dividend payouts should be the order of the day as the company moves to return value to shareholders in 2018. The tech giant has already announced plans to increase its quarterly payout by 14% to $0.33 a share. The company has also authorized a $25 billion share repurchase program.

Cisco should continue to generate more cash, year on, as its legacy hardware business continues to register robust growth

Wells Fargo: 2.6% Dividend Yield

It might come as a surprise that Wells Fargo & Co (NYSE:WFC) is in the list, given the amount of controversy that has shrouded it the past year. The company was the subject of claims it created more than two million fake accounts, just to meet sales targets.

While the dust on the scandal appears to have settled down, focus now shifts to the company’s dividend yield. The company is in the list on the fact that it boasts of 6 years of consecutive dividend growth. A 2.6% dividend yield also makes it a no-brainer for investors looking for a solid stream of income.

AbbVie: 3.2% Dividend Yield

AbbVie Inc. (NYSE:ABBV) is one of the few companies that income-focused should pay close attention to, given that it is set to boost its dividend payout by 35% this year. The company’s quarterly payout is set to stand at $0.96. In addition, the company has confirmed plans to buy back stock worth $10 billion seen as another avenue for generating significant value.

AbbVie is to pay a dividend on May 15 to shareholders on record as of April 13 representing a yield of 3.2% with a payout ratio of 65%.

Blackstone Group: 7.2% Dividend Yield

Blackstone Group LP (NYSE:BX) is one of the few dividend paying stocks whose passive income is right around the same as that of mutual funds. A dividend yield of 7.2% justifies the company’s additions to the list of the best paying dividend stocks.

If it were not for the pampered dividend yield, Blackstone would be a no play given that the financial firm is the subject of controversies ranging from scandalous real estate practices.

Best Buy

The tax overhaul has resulted in more money in circulation, which should lead to an increase in consumer spending. Best Buy Co Inc.(NYSE:BBY) is already reporting an increase in customer traffic to its stores, which can only point to more free cash flows on increased sales.

With earnings and sales expected to increase in the coming quarters, the company should have more cash to distribute to shareholders in the form of dividends. The company currently pays a 56-cent dividend to its common stockholders.

Coca-Cola: 3.4% Dividend Yield

The Coca-Cola Co (NYSE:KO) is considered a dividend king as it has increased its yield for 55 consecutive years. The company recently announced a 5% increase in its quarterly dividend. The beverage giant will now be paying shareholders a quarterly dividend of 39 cents up from 37 cents. Its dividend yield stands at 3.4%.

The company is poised to continue raising its dividend yield given that it gained market share in several beverage categories last year. Solid sales and profit outlook for 2018 affirms suggestions that its dividend yield can only continue to rise.

T Rowe Price Group: 2.6% Dividend Yield

T.Rowe Price Group Inc. (NASDAQ:TROW) has increased its dividend yield by 23% to 70 cents from 57 cents. The increase represents a dividend yield of 2.67% which is above S&P 500 implied dividend yield of 1.92%.

Welltower: 6.36% Dividend Yield

With the U.S population expected to age quickly in the years to come, Welltower Inc. (NYSE:HCN) is emerging as an interesting pick when it comes to dividends in the healthcare real estate sector. The company primarily invests in senior housing properties and derives a good chunk of its revenues from private pay sources.

That said, the company boasts of an enticing 6.3% dividend yield. However, this investment should be considered as a long term play.

Intel: 2.42% Dividend Yield

After a record-setting year on revenues and earnings growth, there is no denying that Intel Corporation (NASDAQ:INTC) is on the cusp of announcing a dividend increase in 2018. In the fourth quarter of last year, the company increased its dividend payout by 10% to $0.30. However, it is not expected to stop there as its cash balances continue to balloon.

Considering that, the company has a dividend yield of 2.42%, which represents just 43% of its free cash flow, there is no reason not to invest in it, in anticipation of another dividend hike.

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