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Chasing Yield: Where to Find the Top Dividend Stocks

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  • (1:00) - Finding Good Dividend Yields: Income Investor
  • (7:30) - Banking Industry Dividends
  • (13:30) - Stock Screener For Top Dividend Companies
  • (16:00) - Brian’s Top Stock Picks: LVS, TXN, AAPL, WDC, CAT, HEES
  • (24:15) - Tracey’s Top Stock Picks: OXY, WSBC
  • (29:15) - Episode Roundup: Podcast@Zacks.com

Welcome to Episode #132 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.

In this episode, Tracey is joined by Brian Hamilton, the Editor of Zacks Income Investor, to discuss what’s happening in the world of dividends and buybacks.

Corporate America has been on a spree the last two quarters, thanks to tax cuts and the booming global economy, raising dividends and announcing big share buyback programs.

Where should investors look who want a little bit of extra income?

Shareholders Finally Get Their Payout

In 2017, companies spent over $900 billion on dividends and buybacks. This was the sixth year of increases.

In 2018, 169 companies have announced dividend increases, with none reporting a decrease. That is the first time that has happened since 2003.

Additionally, there have been some huge announcements, including Apple’s (AAPL - Free Report) $100 billion share buyback program.

Screening for Dividends

It’s not all about what pays out the highest yield. Investors also want companies with solid fundamentals, including rising earnings estimates.

Brian screened for that by screening for Zacks Rank #1 (Strong Buy) and #2 (Buy) stocks, both of which should have rising earnings estimates.

He also included a dividend yield of 2% or higher, which is above that of the S&P 500 which is currently yielding 1.84%.

The screen returned 206 stocks.

If you are a premium member, you can replicate this screen on Zacks.com using the screening tool.

 

Here are five of Tracey and Brian’s favorites.

5 Dividend Stocks to Keep on Your Shortlist

1.      Las Vegas Sands (LVS - Free Report) is cashing in on the global economic boom thanks to its casinos in Macau. The stock is yielding 3.78%.

2.      Texas Instruments (TXN - Free Report) is no longer your father’s calculator company. It has shown strength in the auto and industrial sectors. TXN pays a dividend yielding 2.2%.

3.      Western Digital (WDC - Free Report) has great cash flow generation and is one of the few technology companies paying a dividend. It’s currently yielding 2.3%.

4.      Caterpillar (CAT - Free Report) just posted one of its strongest quarterly earnings reports in years but shares sold off anyway. A buying opportunity? It’s currently yielding 2%.

5.      Occidental Petroleum (OXY - Free Report) never cut its dividend even when crude plunged into the $30s. Even though the stock has soared in 2018 it is still yielding 3.7%.

What about small cap stocks?

Are there any dividend opportunities there or is it all about the large caps?

Tune into this week’s podcast to find out what small caps you should be looking at for income, including one that has a yield over 5%.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

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