When you buy a stock of a company, you partially become the owner of the company. And in this article, let’s talk about one kind of stock named Dividend Stocks. Now, in the following paragraphs, let us discuss the definition of dividend stocks and the best dividend stocks one can buy these days.
1. What are Dividend Stocks?
A dividend stock is a dividend payment method made in the form of additional shares instead of a cash payout. Also known as “Scrip Dividend”, it is a distribution of shares to the existing shareholders. And this type of dividends comes when a company wants to reward its investors but either doesn’t have the capital to distribute or it wants to hold onto its existing liquidity for various other investments. Stock dividends also have a tax advantage they aren’t taxed until the shares are sold by an investor. This is a huge advantage to shareholders who do not need immediate capital.
2. 7 of the Best Dividend Stocks to Buy in 2019
You have finally come to know the definition of dividend stocks. Now to start investing, let’s talk about 7 of the best dividend stocks to buy in 2019.
Crown Castle International Corp. (CCI)
Crown Castle International Corp. is one of the best dividend stock as it has leaped more than 30% over the last twelve months. And when stocks gets high like this, some market mavens like to rain on the rain makers and forecast a doubt. As Jeff Bilsky, protfolio manager and senior analyst of the large cap equity investment team remarks,
“Even though CCI has outperformed the market year to date and at trading at the higher end of historical multiplies based on consensus estimates, I believe the market is understanding CCI’s growth potential”.
Starbucks Corp. (SBUX)
Starbucks is a renowned name in the global coffee market. The investors are being attracted because of the dominant position of the company globally. According to Yale Bock, a portfolio manager for Boston based interactive advisors, SBUX has more than 30k retail units in China and is focusing to expand in Asia. And, in all Asia Starbucks has a great opportunity to expand as in Asia, Starbucks has only 5000 SBUX locations.
Coca-Cola Co. (KO)
Coca-Cola could be the best dividend stocks to buy in 2019. The announcement about the quarterly dividend by Coca-Cola in February 2019 was 40% per share. It shows a yield of 3.41% which means that the average dividend paid by consumer good stocks are roughly double.
H&R Block (HRB)
If you are looking for the best and the highest dividend stocks of 2019, you can look at HRB. According to Christopher Ma, ” HRB has an attractive growth record, having raised or kept flat its dividend since 1916. The quarterly payout is 26 cents per share which means that it has risen at a compound annual rate of 5.4% over the last 10 years. And most importantly, the stock of the company has risen up more than 20% over the last year.
American Eagle Outfitters (AEO)
This Pittsburgh-based apparel company could be the best dividend stocks to buy in 2019. The company has tumbled 36% since hitting an all-time high on August. But in the last twelve months, there is a 150% rise. As Owen William remarks,
“AEO offers a quarterly dividend of 55 cents per share or about 125 points above S&P 500 yield. AEO would qualify as a contrarian play today, looking at the recommendations of analysts on the Street”
William also called AEO a strong buy as it is one of the best dividend stocks of 2019.
A company with stable earning is more likely to pay steady and rising dividends and this is why Darden Resturants is one of the best dividend stocks company in 2019. In the last five years, the dividend growth of Darden restaurants is 7% and as a result, it provides a $3.52 annual cash dividend, yielding 2.9&. Over the last five years, Darden stock has delivered a 159% compound stock market return.
Mcdonald’s is one of the best-renowned companies in the world and one of the best dividend stocks companies too. It first started paying the dividend in 1976 and after then the company has risen dividend every year. McDonald’s stock provides $4.64 annual dividend and yielding of 2.3%. The five-year return is also quite good at 103% and the growth rate of the dividend stock is 6%. Finally, when it comes about dividend annuity factor, McDonald’s earnings grew at a 10% annual pace in the last five years.
Finally, you know all the details related to dividend stocks. As you can see, there is plenty of dividend stocks company available in the market and some of them are too good to buy. And this is why, in order to help you, we have just mentioned the 7 best dividend stocks companies.
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