Make Money Fast: Top Dividend Stocks This 2019
by Abdul Aziz Mondal Investing Published on: 21 February 2019 Last Updated on: 16 July 2024
66% of Americans think that they’ll outlive their retirement savings.
If you feel this way, you might be interested in how you can invest your savings, so that you’ll have plenty of retirement money.
One of the best ways to invest your savings is by putting your money into dividend stocks. Using them, you’ll be able to bolster your retirement account and earn an income even when you’re out of work.
There are multiple ways by which you can earn credible income and generate revenues while sitting at work. With so many of us working from home because of the COVID-19 pandemic, exploring new avenues of earning income can be explored. For more information about earning easily while sitting at home, click here.
This post will go through some of the top dividend stocks of 2019. If you have no idea how to pick the correct dividend stocks, these tips will eliminate your dividend doubts.
Let’s begin!
What Is a Dividend Stock?
Of the many financial products, you can invest in, dividend stocks can be one of the better options. This is because they’ll provide you with regular payments, for the duration you own the stock.
With a ‘normal’ stock, you’d just buy it and then wait for it to (hopefully) rise in value.
The profit you make from this kind of stock comes down to the difference between the purchase price and the sale price. Of course, you also need to take into account the associated broker commissions and taxes.
With a dividend stock, you make money each time the company associated with the stock produces a dividend. But, you can also make money if you sell the stock after it has risen in value.
The value of the dividend will vary from stock to stock, and it often comes down to the profitability of the company in question. That said, the size of the dividend may increase over time, as the company becomes more successful.
When buying a dividend stock, you’ll often get the chance to see something known as the ‘dividend yield.’ This figure is what you can expect to earn when the company does issue a dividend.
Because these stocks provide an income, they’re often considered low risk when compared to other kinds of financial products.
Apple:
Apple is one of the most valuable companies in the world and apart from a few minor blips, it doesn’t show any signs of slowing down. This makes it a good candidate for those interested in buying a dividend stock.
One of the most significant factors that tend to affect the dividend payout of a stock is the cash flow of a company. Apple does great in this department and in the December quarter of 2018 alone, the company generated $26.7 billion in cash flow.
As mentioned earlier, the future growth of a company can also have a big impact on the dividends the company will offer. Current estimates suggest Apple isn’t going to slow down, but even if it does, the dividends will not crash to zero.
AT&T:
AT&T is a company that isn’t at the forefront of everyone’s mind when it comes to investing.
That’s a shame, though, as the company can provide some great returns. In fact, recent figures show that the AT&T stock offers a 6% yield for dividend investors.
AT&T has been able to produce a dividend for the past 25 years, and the value of this dividend has slowly risen. This bodes well in terms of the future returns you can expect by putting your money into AT&T dividend stocks.
That said, it’s fair to say that the price of the AT&T stock is currently lower than it should be. A lot of this is because the company recently failed to meet earning targets.
But it’s worth noting that AT&T recently acquired Time Warner, and this gives the company a strong base to build on in the future.
Following this acquisition, AT&T may be able to enter new markets and incorporate new technology into its business. All of which can lead to better dividend payments in the future.
Microsoft:
Microsoft is a promising investment, just because its core business is so strong.
The company has a profitable consumer sector that sells computer and gaming hardware. However, it also has a robust B2B department as companies use its software to help them manage their business.
Microsoft is also moving into new territory with its Azure AI offers. This is made clear by its recent marketing push that promotes its machine learning capabilities.
Salesforce:
Salesforce is one of the largest software companies in the world, and it has consistently posted strong earnings for many years.
The company is well-positioned for growth, as its target market begins to spend more on the kinds of cloud services offered by Salesforce.
The company is also setting a lot of aggressive goals, and the recent earnings call to highlight the ambitions of the management.
Like a lot of the other companies we’ve covered, Salesforce has incredibly strong cash flow. This is in part based on how the business is structured, as customers need to make regular payments if they want to keep using Salesforce products.
Johnson and Johnson:
Despite controversies surrounding its ‘talc’ product, Johnson and Johnson remain a stable company.
A lot of this comes down to how diversified the company is, as it has a wide range of products on offer.
For instance, it sells consumer health products, but it also sells high-end medications too. On top of that, the company also deals with medical devices, which are sold to hospitals.
One of the promising things about this company is it’s not a startup, based on a novel idea. This means that it’s more resistant to competition, thereby allowing it to have an enduring stock value.
Finding Additional Opportunities:
If you want to find other worthwhile dividend stocks, it’s important you pay close attention to the financial markets. This’ll allow you to buy up bargains if there’s ever a ‘correction’ in the market.
But, if you’re short on time, you might not be able to do this. As a result, you might need to rely on others to get your stock tips.
One option is to follow the advice of people that have some market knowledge, an example being Jim Cramer. If you’d like to get some of Cramer’s picks, visit this website.
Do You Know How to Pick the Top Dividend Stocks?
The tips in this post should help you find the top dividend stocks that’ll produce a healthy income.
Of course, no stock is immune to changes in the market, and so you’ll want to keep a close eye on the financial news. If you sense that there’s going to be a downturn in the market, you need to consider whether it’s worth selling your stocks.
In any case, as long as you place a focus on investing, it shouldn’t be too hard to build a retirement account you can be proud of.
Worried you don’t have enough money to be a successful investor? Read this post to learn how you can get started with investing, even if you have a modest budget.
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