58 Dividend Stocks to Put Cash in Your Pocket EVERY Day

imagine making a hundred and forty two dollars a day and doing absolutely nothing that's an extra three thousand dollars a month and it's just the beginning Hey bow tie Nation Joseph hog here and we've done weekly dividend videos as well as covered the best monthly dividend stocks well what could be better than weekly cash flow but a dividend check every single day I'll show you exactly how to build a dividend portfolio for daily cash flow how to find these stocks and how much to invest for the cash you need now this strategy works because dividend stocks pay on an extremely consistent schedule dividend paying companies know their investors rely on that cash flow so they try to schedule their dividends during the same weeks every three months that means planning your dividend Investments right you can build a portfolio that will send you a check every single day to help pay your bills I'm going to show you that list of dividend stocks next but understand this is going to be a monster of a list think about this there are about 250 days the stock market is open each year and most dividend stocks pay four times a year that means to get a check each of those 250 days you're gonna need about 62 dividend stocks that's 62 dividend paying stocks sending you money 248 days a year unfortunately we've also got two monthly dividend stocks in here that are going to pay you 12 times a year each but be ready for a big list to keep that cash coming stick around later and I'll show you how I found these how to plan out your list and exactly how much to invest this first group of stocks will send you a dividend check in January April July and October it's 18 stocks plus the two monthly dividend payers for a total of 20 checks I'm not going to talk through every stock on the list here because we've covered most of these on the channel before I'll highlight a few of the really exceptional stocks and leave links to other videos in the description and since all these are in the S P 500 Index that market index of the 500 largest companies in the United States they're all going to be big blue chip companies with a lot of financial stability nothing can guarantee a dividend but it's a pretty good start with these working through the list you're going to notice I've also tried to get good diversification across sectors in each group here we've got everything from Tech and financials so Healthcare and real estate spreading your portfolio out for Less risk Pfizer ticker PFE hasn't been in the news quite as much as it was during the pandemic but is still one of the world's leading drug makers with a strong 3.3 dividend yield Pfizer has worldwide reach with 1.4 billion patients and it doubled its sales during the pandemic the company is expected to post 26 sales growth this year before that falls to about 21 next year on that drop in vaccine demand but this company is a leader in drug Innovation especially in the new mRNA technology this new methodology could spark breakthroughs not just in vaccines but across disease and medicines Pfizer always has a full pipeline of new drugs and launched 13 new clinical studies last year ensuring even as demand for That vaccine Falls new ones are going to be taken its place more impressive and why I continue to buy Pfizer stock is that the company has been able to do all this while keeping its operating margin consistently above 25 percent that's even against the need for spending bill billions in research and Drug development and has been able to do this without adding billions in debt Pfizer's debt to equity ratio is just 44 versus something like a Merc which is 77 percent of its capital structure in debt now you can't talk dividend stocks without JP Morgan ticker JPM and it's three percent dividend yield JPMorgan is the leader in banking with over four trillion dollars in assets about half of that in deposit accounts it also has the strongest Capital markets business in the industry which is why it's outperformed over the last five years with a return of 28 versus the broader banking ETF now the bank did maintain its dividend at just one dollars a share after the most recent stress test by the FED but increased it 11 percent last year and has doubled the payout over the last five years according to research by Barclays JP Morgan has the highest capacity to increase its payout with the potential to return almost 19 billion dollars to shareholders just this year estimated dividend payouts are in orange here with with stock repurchase programs in Gray JPMorgan has followed closely here by Bank of America and Wells Fargo each with the liquidity to return more than 15 billion dollars to investors over the next year we've got our first group of dividend stocks but I wanted to make sure you know how I found these and how to use this strategy to create your own daily dividends list this all starts with the fact that most dividend stocks pay out every three months on an extremely consistent schedules dividend of musters Love That certainty and the consistency so directors of these companies try to declare and pay those dividends on the same week every three months some even down to the same day so what you can do you can put together a list of your top dividend stocks or tools like I did and research all 360 stocks in the S P 500 that pay dividends you then go to a site like Yahoo finance you can go to the stock and here I'll click the historical data tab I can change the time period to the last five years and then to show dividends only and click apply the site here is going to show me the X dividend date of every dividend payment for the stock over the last five years and you can see these are consistently the same time during the same months for example at T consistently has that dividend date towards the end of the first week in January April July and October and that's going to be paid out about a week after the ex-dividend date listed then it's just a matter of getting all this into a spreadsheet like I did here noting when each stock goes ex dividend once you have that list of dividend stocks you can plan it out like I've done for the portfolio I first went through and made sure I had all my favorite dividend stocks the ones with the highest yields and the best growth then I went back through to make sure that we had at least four or five dividend stocks paying each week you'll notice that some of these days do double up and some weeks have more than five payments but it still comes out as close as possible to a dividend payment each day the market is open this is a great list 58 dividend stocks two of them monthly payers and 248 dividend payments every year even better the group pays an average dividend yield of 4.26 percent that's nearly three times the average one and a half percent yield on the broader stock market now that dividend schedule is important but that's not the only thing so I'm going to show you in a minute how to pick your dividend stock so you get not just those daily cash flows but also strong price return as well I'll also make this full list of dividend stocks available for downloads so look for that link towards the end of the video this second group of dividend stocks will put cash in your pocket in February May August and November with 18 checks a month including our two monthly paying stocks we've got a few lower dividend yields in here like Archer Daniels and spgi but the average yield still approaches four percent on those big payers like Newell Brands and International Paper I'll keep the screen up a little longer so you can see each one but again I'm going to make this list available for free download later let me know in the comments below if you think another dividend stock should have made it on the list I recently added Conoco Phillips ticker CLP as the only Energy stock in our bow tie index I know a lot of dividend investors aren't impressed with the weak 1.9 dividend yield here but don't be fooled by that lower headline dividend that's just what the company pays out for its regular dividend payment like other energy stocks right now Conoco Phillips is a cash flow machine and it's returning that cash to shareholders the company upped its share buyback program to 2.5 billion dollars this year that's about 1.7 percent of the outstanding shares more importantly though Conoco has what is called a variable return of cash here on the right this is a special dividend the company pays out in months staggered with its regular dividend so investors are actually getting payments almost every single month on the eight regular and variable dividend payments over the last year Conoco has actually paid out 4.44 cents a share or a yield of almost four percent that along with the cheaper evaluation on this stock and stronger growth make it one of the best if not the best energy stock to buy right now and Conoco probably has the best production profile among the major oil companies and more than half of its planned oil production over the next decade is going to come from that Permian Basin fields in the South and with some from The Bakken and Eagle Ford's region but much less internationally than a lot of the other Majors like Exxon this is going to be important for two reasons first it's going to help protect the company from those geopolitical problems Drilling in other countries or or a loss of fields like Exxon had to take when it exited Russian production earlier this year it also means Conoco is going to benefit from some of the lowest cost oil production in the United States this analysis by Raymond James shows the oil price needed to break even on production in various Fields you can see Eagle Ford production here around 40 to 45 dollars a barrel with boken Fields as high as 55 dollars a barrel Permian Fields though those are in the Midland and Delaware resource plays on the left with a production cost as low as 35 dollars a barrel this is going to mean low-cost production for Conoco and stronger cash flows supporting that dividend yield and price gains s p Global ticker spgi offers the lowest dividend yield on the list at just 0.98 but I think this one has a surprise upside potential s p combined with his market last year to merge its data and Benchmark tools with the leader in supply chain intelligence and it turns out it was a smart move as that bottleneck and Supply chains over the last couple of years really put a premium on Market intelligence and data combined the new company is going to get about a third of its revenue from that market intelligence segment and a third from its rating Agency on bonds along with four smaller segments and revenue growth has been a little slower than peers over the last few years but I like what this merger is going to do for the business and besides that boost of Revenue I think it comes through in stronger profitability as well The Southern Company ticker Esso is one of the highest paying utility operators on the list with a 4.1 dividend yield the company operates as a regulated electric utility serving more than 4 million customers in Georgia Alabama and Mississippi along with 4.4 million customers in natural gas and Southern has been one of the most aggressive in the utilities industry for its push to clean energy in 2000 nearly 80 percent of the company's electric generation came from coal today that's just over 20 percent and the company is pushing further into nuclear natural gas and Renewables than anyone else now while it has meant higher costs to ramp up that footprint the early moves into Renewables could pay off for the company and investors through higher cash flow over the rest of this decade we're halfway through our list of dividend stocks but you know I've got to send a special shout out to all you out there in the nation thank you for spending a part of your day to be here if you're not part of that Community yet just click that little red subscribe button it's free and you'll never miss an episode this third group of dividend stocks will send you a check in March June September and December it's the highest yield of the three with an average 4.8 eight percent dividend on some big payers like Devon energy and Altria Group now you'll notice I do have Philip Morris and Altria on the list but don't feel like you have to include them in your list use the process I showed you earlier if you want to find another dividend stock that pays around the same weeks to switch out for these or really any stocks in the list Devon energy tickerdvn has long been a favor to mine and I recently highlighted as the company as one of the five dividend stocks better than the qyld now hold up now I know there are a lot of qild Believers out there so I'm going to leave a link to that video in the description make sure you click through to see what I mean Devin is a leading oil producer in three states North Dakota Texas and Delaware with oil spiking over the last two years these assets have become like cash flow machines and like most companies Devin is choosing to return that cash to shareholders rather than acquiring more assets at higher prices free cash flow quadrupled census merger with wpx last year and it's forecasting even stronger cash flow this year the company is break even at a price of just thirty dollars a barrel well under the 80 plus oil has been at lately and it's likely to say most of this year at 85 dollars per barrel oil the company will grow free cash flow by 14 this year and prices could fall 65 percent to that thirty dollars a barrel before the company is operating at a loss this all helped Devin increase its share buyback program to 1.6 billion dollars nearly triple what it bought back last year and continue that history of dividend growth Iron Mountain ticker irm hasn't grown its dividend quite as much but pays a strong 4.7 yield and leads in this industry of Records management Iron Mountain is the leader in that physical record storage with nearly 1500 facilities in 63 countries it's a slow growth Market that keeps out the competition allowing irm to dominate that market and then push its free cash flow into expanding its data center and digital storage business a storage and Records management is about two-thirds of the revenue that pie on the left here with with data center a growing part part of the total irm also has a strong service segment with higher margins to help boost its bottom line again this is just a slow growth business even with that data center component but the cash flow is more than enough to sustain that dividend plus some price appreciation management has held the dividend steady throughout the pandemic so I would expect an increase sometime this year or next which could help boost that share price BlackRock ticker BLK the largest asset manager in the world with eight trillion dollars in assets also made it onto our bow tie index in fact if this was a country only China and the United States would have a larger economy BlackRock is the company behind the ishares exchange traded funds along with its index funds that power its passive investment strategy for every theme and goal imaginable it's a very stable source of cash flow to complement that trillions of dollars in credit market and Forex assets it manages while growth in China has slowed over the last couple of years it could become one of blackrock's core strengths in the years to come the company was granted permission to be one of the first asset managers to provide mutual fund business in the country and its biggest competition Vanguard largely gave up on the market in 2020. our shares only pay about a 2.7 dividend here lower than the group average but the company has grown its payout by 10 percent a year over the last three and and Total return of 16 a year we're coming up on the two monthly dividend stocks that are going to pay you 12 times a year and exactly how much to invest to make that daily cash flow but if you want a smaller list I'm going to link to our weekly dividend portfolio in the description below and I'll show you how just 12 dividend stocks can give you weekly cash flow so check that out I also want to give you some criteria for picking these stocks with more than 350 dividend stocks in the S P 500 alone you're gonna have plenty to choose from to create your cash flow so you can be picky here only buying the very best dividend stocks for that yield and return and a big part of that is actually recognizing it's not all about the dividend yield if 42 percent of the total return on stocks is from dividends that means another 58 has been from that price appreciation from the price returns just chasing the highest dividend yields and ignoring returns means that you're going to be missing out on a big part of investing now in other ways you can get all technical here and calculate your returns or you can go easy and just check out the price chart to make sure that the stock is producing positive returns for example shares of debit energy not only do you get that eight percent dividend yield but the stock has doubled in the last five years we talk a lot about fundamental analysis here on the channel like price to earnings ratios other valuation measures as well as just comparing Stocks by their operating margin now I want to get back to our list so I'm just going to link to a few videos on that stock analysis below one last thing I will say about creating this list of dividend stocks is make sure you diversify your companies by sector as well this means making sure you have stocks from at least a few of the 11 stock sectors you know those broad groups of stocks and topics like technology utility companies and materials making sure you have companies from at least five or six of these sectors means you're going to protect your portfolio and your cash flow from any single event that destroys a particular group we get 24 dividend payments from just two stocks on the list our two monthly payers that's realty income ticker oh with a 4.6 dividend yield and SL Green Realty ticker SLG with a solid 9.3 percent dividend realty income ticker o is one of the most popular dividend stocks around for its 4.6 dividend paid on a monthly basis royalty income is the only rate in the dividend an Aristocrats list with annual dividend increases since 1994. in fact about 4.4 percent annualized increase on the dividends over nearly 30 years and a double-digit shareholder return the company owns over 11 000 properties in the retail space so it's going to see weakness on any drop in consumer spending or a recession but but these are Diversified across every industry from retail to grocery to convenience dollar stores and restaurants so not only do you have some good diversification here but many of these are in Industries with a little bit more stable cash flows than your cyclical retailers like apparel and electronics and interesting development lately for realty income is it started expanding internationally with 225 properties in the UK and Spain now we are seeing quite a bit higher inflation in Europe so consumer spending is probably going to fall there but that portfolio represents less than two percent of the company's Total Property so not something that's going to hurt in the short term and I like the idea for that International growth for the future the company operates on a triple net lease strategy so the 10 are going to pay all the property costs which makes for lower operating costs for the REITs for realty income and the average lease length is at nine years so that long-term leases to keep that cash flow stable realty income has been able to maintain a 98 occupancy rate more than four percent above the rate average really speaking for its careful process in leasing I'll put the download link to the entire dividend list in the description below but now how much to invest for a hundred 150 or even 200 a day in dividends to find how much you need to invest you only need two numbers the dividend yield on your stocks and how much money you want to collect remember though dividend yields are always shown on an annual basis though for example when you see Devin energy pays an eight percent dividend yield that's an eight percent annual return on the shares paid out in dividends every three months that's March June September and December for this stock so for example let's say you need a thousand dollars in dividends a month from your shares of debit energy to make this a yearly number you just multiply by 12 months for that twelve thousand dollars a year from your shares then it's as easy as dividing that annual amount the twelve thousand dollars by the dividend yield of eight percent to find how much you need to invest so to receive that three thousand dollars every three months when Devon pays its dividend or or a thousand dollars a month income you'd need to invest a hundred and fifty thousand dollars in the stock we can use this to find how much we need to invest in each of our dividend stocks to get that daily cash flow let's say let's say a hundred and fifty dollars a day there are approximately 250 trading days in the year days when the stock market is open and dividend stocks can schedule their payouts to find the annual amount then that we want to earn we just take that 150 a day times 250 days for thirty seven thousand five hundred in annual income now altogether we know our dividend stocks average four point two six percent dividend yields so so instead of finding how much we need to invest in each individual stock we're just going to find the average here if we need thirty seven thousand five hundred a year divided by the annual dividend yield of 4.26 percent that means we need to invest eight hundred and eighty thousand dollars in our list of dividend stocks and if we spread that across each of these 58 stocks we'd be investing just over fifteen thousand dollars in each dividend for that hundred and fifty dollars daily cash flow you're damn right is a lot of money and yeah it's gonna take a while to get to that point but that doesn't mean you can't get started right now invest as little as a hundred dollars a month reinvest your dividends and and I guarantee you you will get to that point the point where you can live off your daily dividend check click on the video to the right for that simple 12 stock portfolio for dividends every single week just 12 dividend stocks to buy for that constant cash flow don't forget to join the let's talk money Community by tapping that subscribe button and clicking the Bell notification

Channel: Let's Talk Money! with Joseph Hogue, CFA

Views: 64,216

Keywords: dividends, dividend investing, dividend stocks, best dividend stocks, dividend, live off dividends, dividend portfolio, dividend stocks to buy, dividend income, dividends every day, monthly dividends, weekly dividends, dividends every month, dividends every week, dividend stocks for beginners, top dividend stocks, bow tie nation, joseph hogue

Id: yf2qhwq2g9s

Length: 19min 42sec (1182 seconds)

Published: Wed Dec 07 2022