What are the best type of business to buy into dividend stocks?

[SunnyCaliGirl]

[WindAtMyBack]

Not trying to be flippant but... If you have to ask at a place like this then you should not be buying stocks directly. The stock market is a dangerous place. Search for good dividend paying mutual funds and let the pros manage it. For that matter CDs are paying pretty good right now, without nearly as much risk.

If you really want to buy stocks directly, search for high yield dividends, then narrow it to solid, high quality, well-established companies. These will be companies that you've heard of your whole life. If you never heard of the company until 5-10 years ago, it's not the right kind of company.

In the past, utilities were the traditional go-to stocks for dividends. But that is no longer true. The utility sector has changed pretty radically over the last 30+ years. Now it's all over the place. So there is no good answer to what type of business is the best (I assume you are referring to the business sector.).

Start by looking for high yield stocks. Then filter it to good solid companies that have consistently paid dividends for at least 20 years - 50 years is even better. Dividend growth is also a very good measure. That means the company has consistently increased their dividend for many years/decades. It doesn't have to be a huge increase each time, just consistent. Also look for long term management with a good track record.

With dividend stocks, you are in it for the income, not the growth of the stock price. You don't want the stock price to be dropping. You don't want it to be volatile. You want it to be solid, or a slow growth over a long period of time. You want the income, but also want your investment to be safe.

If you search for the best dividend stocks, you will get ten experts giving you ten different answers.

You should seriously consider mutual funds or plain old CDs.

[Anonymous]

It depends what your financial goals are. And don't say, "to make as much money as possible".😆

The bottom line is dividends are like added value. I don't view dividends as anything more than added capital to reinvest. It's the growth that I'm really after. Because while dividends are nice, you pay taxes on it. You don't pay taxes on growth (except in cases like index funds, and that's still not direct) until you sell the stock.

My personal belief is you should look in the 3% range. Most stocks above that cannot pay you consistent dividends.

Currently the dividends stocks I hold are BAC, OXY, COF, DEO, PSKY, SIRI, CVX, CB, DPZ, POOL, STZ, MA, ALLY, AXP, MCO, AAPL, V, AON, NUE, LAMR, UNH, JEF, RITM, GS, LPX, TMUS, KO, USB, PBA, TECK, VRSN, LNG, LUCK, SRE, KHC, MTB, HWC,

If you're looking for solid earners look at stocks like BAC and KO. Coca cola has shown exceptional dividends consistency by increasing it's dividends for the past 63 years. BAC has increased it's dividends for the past 31 years and have maintained payment for the last 16. There is a reason both stocks make up the backbone (the top 10 holdings) of the Oracle of Omaha's Warren Buffets portfolio

[AI Opinion]

Investing in dividend stocks often means looking at stable and mature companies with a track record of consistent earnings and dividend payouts. Typically, sectors like utilities, consumer staples, telecommunications, and healthcare are good candidates. These industries tend to have steady demand regardless of economic conditions, allowing companies to maintain or grow dividends. It's important to assess the company's financial health, dividend yield, and growth potential before investing.

[ArrowheadSW]

Well whichever stocks you consider, also see if there is some online analysis on the stock to get at least some sort of professional opinion. Oil company stocks tend to pay good dividends, depending on which one. It is best to diversify and get several stocks spread over at least a few industries. That way your risk is spread out.

[Anonymous]

Well your best bet is to study some of it first. Read. Just asking someone online isn’t going to do much for you. People can be biased in what they think is the best thing to invest in. Learn about small, medium n large cap stocks. What dividends are. Strategically planning this based on a number of things including your age would help out a lot. Investing in just one company’s stocks could cause you to lose all your money. You could invest in index funds or mutual finds, even bonds. Usually the younger you are the more risk you can take, but as you get older you should balance your portfolio to adjust it w your age increase. But again you need to read. Otherwise you’ll have to pay someone to do this for you which could cost you thousands of dollars in expense ratios, maybe even more.

[BonzoInBitburg]

You're not going to find the best financial advice here. Warren Buffet says buy S&P index funds, so if I were you I'd do that.

https://finance.yahoo.com/news/warren-buffett-says-buy-kind-172800750.html

[Anonymous]

it depends on your risk tolerance. They actually have a category called Dividend Aristoctats. Which are stocks that have increased their dividends every year for the past 25 years. Or Kings. Which have done it for the past 50 years. That helps provide you with constant growth, but if you're on the more risky side of things, you can find some lower priced stocks that pay high % dividends. The risk is that those companies might lose more in share price than you'll gain in dividend payout but it's part of my portfolio always.

[Physics-Man]

I recommend looking into YieldMax & Roundhill Dividend ETFs. They pay you every week.

I made about $355 in dividends for August and about $371 in dividends for July. I only have thousands of dollars invested in those ETFs.

Any gains or losses you make, are on you; I'm not responsible for them. They are very risky, as is with all and any trading or investing involving the financial markets.

[mysteriousNicholas]

Regardless, probably the best times to buy no advice are when the market is down and or staying down lol during really lengthy says of down down down the stocks are down lol in price lol 📉📉📉📉

[DrPepper12]

INDEX FUNDS!!!

BALANCED international & domestic.

MULTIPLE sectors & regions.

ADJUST for age & circumstances

LOW LOW LOW LOW LOW management fees.

That's the winning ticket 🎟️

[bowenw]

Ask your broker about this. They should be able to recommend some stocks that consistently pay dividends, regardless of the state of the economy.

[Billlewis]

Telecom stocks, like AT&T or Verizon, etc are good choices.

[AngryCarl2]

I can tell you what stocks paid good dividends in the past. Nothing is guaranteed in the future.

[blondfrog]

I don't know anything about stocks buddy sorry. I don't even know how to get started or what websites people use to invest in them.

[CaptainSmartass]

I'd recommend speaking to an independent financial advisor. There's bound to be at least one in your area.

Simples...

[Meatballs]

You want to trust someone else with your $$ cool but I won't do it I trust no 1

[exitseven]

If I remember correctly public utilities always paid a good dividend.

[Anonymous]

I think Advisor Smith explained it quite well.

[RedInnocent69]

Ones that consistently pay dividends…