Top 6 dividend paying companies to invest in
Do you seek an investment that assures you a regular income? If yes, high-dividend stocks can be an excellent choice. The dividend-paying companies distribute a chunk of the company’s potential earnings to the investors. Typically, almost every dividend stock pays the investor a fixed amount every quarter, and top dividend-paying companies almost always hike payouts over time. Hence, it helps the investors build an annuity-like cash stream. Below, we will address some of the best dividend-paying stocks.
Verizon Communications Inc.
Verizon is one of the largest wireless carriers in the country. Through November 2017, they had a 2022 total return of -22.5 percent. Of course, its high yield is backed by the stock’s weak showing. However, the telecom sector is oligopolistic. As a result, excellent predictability and cash flows are assured. Verizon has thus consistently paid out good dividends. For the past seventeen years, Verizon has been one of the dividend-paying firms that has increased its payout each year. Although the stock did not have the finest year, it is mostly due to the macroeconomic situation and rising interest rates, which led to increased dividend demand from investors.
Annaly Capital Management
It is a diversified capital management company that works as a real estate investment trust. Annaly has investments across the mortgage finance industry, and its investment portfolio comprises mortgage servicing rights, residential real estate, and agency mortgage-backed securities. On 8th September, the company declared that its board of directors approved a one-for-four reverse stock split, and on 31st October, the company paid its quarterly dividend at $0.88 per share. Thus, it is one of the top dividend-paying companies.
First American Corp. (FAF)
It is a prevalent real estate insurance provider and delivers a lucrative dividend. In addition, they showcased a praiseworthy annual average dividend growth rate in the last half a decade. FAF has sustained approximately twenty-five percent of its average annual gains in earnings per share in the last five years, which is one of the best earnings growth rates in stocks. Sadly, the stock went down approximately thirty percent from its January high, resulting in a temporary jolt to the dividend yield. But, in the last decade, their share price has grown on average by 2.3 percent per year, which is an excellent return, though a tad bit lower than most stocks.
V.F. Corporation
It owns famous footwear and apparel brands like Timberland Vans and The North Face. However, in the recent past, the company struggled as its revenue was reduced for some brands. But fortunately, the inventories have grown, resulting in more product discounts. For over a decade, the company has paid a regular dividend. Their annual payout is at $2.04, and their yield is 7.3 percent.
Johnson & Johnson
Johnson & Johnson has a diverse portfolio of brands that offer products that people need, primarily healthcare items. Beyond its famous consumer brands, the company has massive and steady profitable operations in medical and pharmaceutical devices, resulting in an increase in the dividend for six decades in a year. This diversity across pharmaceutical, consumer health, and medical device brands is unparalleled, proving to be a magnificent profit engine. But, the company believes its conglomerate structure has curtailed its ability to focus its resources. Consequently, the company announced its plans to divide the consumer products business into another company. This split is supposed to happen in 2023, and the existing shareholders will receive shares in both companies.
Dow Inc.
They are involved in the production of different chemicals employed in various industries. Headquartered in Midland, Michigan, its segments comprise specialty plastics and packaging, infrastructure and industrial intermediates, and performance materials and coatings. Their dividend yield is 5.9 percent, and the annual dividend is $2.8.