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Welcome to Episode #263 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Associate Stock Strategist, and the Editor of the Income Investor newsletter, Maddy Johnson, to discuss what is going on with dividend paying stocks.
If you’re looking for income, do you have to buy the “boring” utilities, insurers and telecoms?
You may be surprised at how many innovative companies are paying dividends, and good dividends.
What Kind of Dividend Should You Look For?
Maddy said she looks for stocks that pay above the average dividend yield of the S&P 500, which is currently 1.5%.
That would rule out a company like Apple, which is paying a measly 0.7% yield.
There are always opportunities to buy some companies paying over 5% or even 10%.
But the companies that are innovating AND paying a juicy dividend just aren’t as common.
5 Innovative Companies That Will Pay You Big Cash
1. AbbVie (ABBV - Free Report) is an innovative large cap drug company, whose products include trendy Botox. It’s cheap, with a forward P/E of 8.5. Buffett’s Berkshire Hathaway dove in to buy shares in the fourth quarter of 2020. It’s yielding 4.9%.
2. Innovative Industrial Properties (IIPR - Free Report) is a cannabis industry REIT, which buys properties and leases them back to cannabis growers. The stock has recently fallen 20% during the growth stock sell off, pushing the dividend yield up to 3%.
3. Weyerhaeuser (WY - Free Report) is a REIT which specializes in timber, land and forest products. Lumber is booming as demand remains high due to the boom in home building. Shares trade at 18x but are paying a dividend, yielding 2%.
4. Nutrien (NTR - Free Report) is an agribusiness company headquartered in Canada. It’s been innovating in its retail business as it launched a digital sales platform that saw revenue of $1.2 billion last year, well-above the company’s estimate of $500 million. It recently raised its dividend, which is yielding 3.3%.
5. Broadcom (AVGO - Free Report) is a global technology giant. Shares are up 64% over the last year and yet it still trades with a forward P/E of just 15. It pays a juicy dividend, which is currently yielding 3.4%. Nothing boring about that.
What else should you know about finding innovative companies that also pay dividends?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of IIPR and ABBV in her personal portfolio. Maddy also owns IIPR in her personal portfolio.]
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
5 Innovative Companies That Will Pay You Cold Hard Cash
Welcome to Episode #263 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Associate Stock Strategist, and the Editor of the Income Investor newsletter, Maddy Johnson, to discuss what is going on with dividend paying stocks.
If you’re looking for income, do you have to buy the “boring” utilities, insurers and telecoms?
You may be surprised at how many innovative companies are paying dividends, and good dividends.
What Kind of Dividend Should You Look For?
Maddy said she looks for stocks that pay above the average dividend yield of the S&P 500, which is currently 1.5%.
That would rule out a company like Apple, which is paying a measly 0.7% yield.
There are always opportunities to buy some companies paying over 5% or even 10%.
But the companies that are innovating AND paying a juicy dividend just aren’t as common.
5 Innovative Companies That Will Pay You Big Cash
1. AbbVie (ABBV - Free Report) is an innovative large cap drug company, whose products include trendy Botox. It’s cheap, with a forward P/E of 8.5. Buffett’s Berkshire Hathaway dove in to buy shares in the fourth quarter of 2020. It’s yielding 4.9%.
2. Innovative Industrial Properties (IIPR - Free Report) is a cannabis industry REIT, which buys properties and leases them back to cannabis growers. The stock has recently fallen 20% during the growth stock sell off, pushing the dividend yield up to 3%.
3. Weyerhaeuser (WY - Free Report) is a REIT which specializes in timber, land and forest products. Lumber is booming as demand remains high due to the boom in home building. Shares trade at 18x but are paying a dividend, yielding 2%.
4. Nutrien (NTR - Free Report) is an agribusiness company headquartered in Canada. It’s been innovating in its retail business as it launched a digital sales platform that saw revenue of $1.2 billion last year, well-above the company’s estimate of $500 million. It recently raised its dividend, which is yielding 3.3%.
5. Broadcom (AVGO - Free Report) is a global technology giant. Shares are up 64% over the last year and yet it still trades with a forward P/E of just 15. It pays a juicy dividend, which is currently yielding 3.4%. Nothing boring about that.
What else should you know about finding innovative companies that also pay dividends?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of IIPR and ABBV in her personal portfolio. Maddy also owns IIPR in her personal portfolio.]
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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