7 Dividend Stocks That Pay Me $500+ Per Month

hey y'all in today's video I'm going to share with you seven dividend stocks that pay me over 500 per month I've been really getting into dividends this year especially with the way that the market has been trending we're seeing a rotation out of tech stocks and into more value stocks and stable companies many of these stable companies will pay a dividend and I really value the passive income generated from owning these dividend-paying stocks and if you're looking to increase your own passive income streams then dividend stocks could be a good way to do that okay before we get into the list let's actually briefly explain why companies pay dividends what you can expect from dividends as well as some of the pitfalls to look out for when it comes to this this part is important so don't skip it trust me you're going to want to know this stuff and then after this we'll get into the entire stock list so why do companies pay dividends when companies make a profit they need to do something with that profit they usually have a few different options number one they could reinvest their money so for example if you're a growing startup and you earn some profit then you could actually just reinvest that into your business to create better products and hopefully get more market share the other thing that companies can do when they make a profit is to pay some of that profit back to their shareholders in the form of a cash dividend payment so just by owning a dividend-paying stock you usually get paid a cash payment dividend every quarter that's the usual schedule and if you compound these dividends over time the effects can be pretty amazing now there are some other things that companies can do with their profits like share BuyBacks or perhaps reducing the debt on their balance sheet but for the most part what we're focused on is the dividend now back in the day I used to just look for a company with the highest dividend yields like over 10 percent and just invest in that but you're going to want to be a little bit careful of that because that's what's known as a dividend trap I think anything over a five or six percent dividend yield should be looked at a little bit closer because that kind of tells you that they're not reinvesting their money into the business perhaps they're paying too much out in dividends to their shareholders or the company's stock price has fallen so much that the dividend now looks like a larger percentage of their entire stock price I'm not saying all high yielders are bad stocks that's not what I'm saying at all but anytime you see a dividend yield over five or six percent you should do some more more research all right so the first stock in my portfolio that's a big dividend paying company is JPMorgan Chase this is one of the biggest Financial companies out there and they're paying right now a 3.4 to 3.5 percent dividend yield on their stock so that means for every share of JP Morgan that you own you're going to get paid about four dollars annually for owning that share yeah so 3.5 isn't really that high of a yield per se but it is higher than the Benchmark of the S P 500 which is around 1.7 percent dividend yields are overall just a lot lower than when I started investing and that's due to the share price going up because if the share price keeps going up and the dividend stays constant then as we know the dividend yield will drop the reason I like JP Morgan so much is that they have a large amount of cash on their balance sheet they basically have 1.7 trillion dollars in liquid assets which over 700 billion of it is cash so that means if you're a shareholder you're going to feel pretty secure knowing that JP Morgan isn't going to go bankrupt I think JPMorgan is well positioned in the financial sector especially with a rising interest rate environment so as you may or may not know the FED is about to raise interest rates again this week so as interest rates go up banks are going to profit off of that because they can basically Arbitrage the interest rate and what they give to customers this means that we should see net interest income for JP Morgan continue to go up especially throughout this year and next year as the FED continues to battle inflation they're probably going to keep raising rates so if that happens it'll just stand to benefit JP Morgan I really value security when it comes to a dividend-paying portfolio because if the company's out of business then they're not going to be paying you a dividend so in the case of JP Morgan they did not go bankrupt in 2008 like some other financial institutions out there like Lehman Brothers for example and you know with so much cash on their balance sheet that they're just not going to go anywhere so for that reason I really like having JP Morgan in my portfolio Okay the next stock in my portfolio is known as avvy and that's actually a biopharmaceutical company that owns a portfolio of drugs in different sectors like oncology immunology and also Neuroscience right now the stock currently pays a 3.95 percent dividend yield which amounts to about 5.64 cents per share that you own every single year that you own it you might not have heard of Abby before but I guarantee that you've probably seen a commercial for their most notable drug which is actually called Humira it's a drug that reduces pain and swelling caused by arthritis and so different types of arthritis like rheumatoid arthritis even Crohn's disease and other skin disorders can be treated by Humira it also happens to be one of the most successful drugs ever it regularly tops the best-selling drugs list every single year I know that's crazy that that's even a list but in 2019 the sales of Humira alone were over 19 billion dollars for that single drug now I know that this might be a little controversial like you're investing in Avi which is a pharmaceutical company and the American Health Care system is extremely broken we all know that but Avi is well positioned in their sector because they have leading patents on a bunch of different drugs as well as they continue to invest in their research and development programs which means that they're going to be diversifying their product mix as we move forward I I think that this is going to give them a strong economic moat and right now their operating cash flow is huge it's 22.9 billion dollars every single year in the most recent year as well as having Avi in my portfolio is giving me some more diversity to My overall stock Holdings and also it's the only Healthcare Pharma stock that I own so I'm pretty much okay with it I don't really see them going anywhere Now One Challenge they will face is that they are losing exclusivity with the Humira drug in 2023 which is next year so that means there is going to be more competition for that particular space in the drug field however I don't know if this is such a big deal because they are investing so much in r d but it's something to keep track of and at 5.64 cents per share that means it's going to scale pretty well if you own 100 shares of ABV you're going to get 564 dollars in dividends every single year which is pretty compelling now before we get into stock three I wanted to tell you guys that Weeble is giving away 12 free stocks as a promotion I know that sounds ridiculous but it's 12 free stocks when you deposit at least one cent Weeble is an app where you you can buy and sell stocks and I personally use it on a daily basis as of right now this is one of the best stock promotions out there across the entire industry so I would definitely take advantage of it while you can now I will leave the link in description below and as long as the link is in there that means the promotion is so active so make sure to go get those all right the third stock on my list it's something that we're probably all really familiar with it's PepsiCo so PepsiCo sells different soft drinks and beverages but they also own Gatorade and Frito-Lay which is a consumer package company that sells different types of potato chips their dividend right now is four dollars and sixty cents for every share that you own which means that you're going to be getting about a dollar and fifteen cents every quarter for every share that you own and that results in a 2.73 dividend yield which is pretty in line with JP Morgan now you're probably wondering why do you own Pepsi over Coke and that's definitely a valid question because Coke is a pretty comparable company with also a very great dividend but in my opinion I think I like Pepsi a little bit more because of its diversification of its product mix and if you really think about it like Coke sells beverages which is great but Pepsi does sell those consumer package Goods like the chips and it actually accounts for about 20 of their revenue the last time I read their financial report which is a really good thing because if you're looking for more growth then there's probably going to be more growth opportunities for a company that has a more diverse product mix Pepsi is also one of those stocks where it benefits them to have some pricing power and basically they have pricing power because consumers will always demand their goods almost no matter what as long as they're not raising the prices too crazily but with the current inflationary environment that we're in if they can pass off some of those inflationary costs to their customers and their customers don't mind then I think that's a pretty big win for Pepsi another great thing about Pepsi is that they're going to be here for probably your entire lifetime and my entire lifetime as well you know that Pepsi and Coke have been Mainstays for quite a long time and because they're so big and so large and the demand for their products is so good I don't think they're going anywhere okay so stock number four is craft Heinz Co you've probably heard of Kraft Heinz before they make all your favorite condiments and and consumer food Staples such as ketchup mustard mayonnaise and A1 steak sauce not only do they make those products they sell a ton of it with net sales of 26 billion dollars just last year they have a pretty strong dividend with a 4.62 percent dividend yield which comes out to around 1.60 per share that you own this Stock's basically been training flat the entire year which I think is fine compared to the S P 500 which is down about 17 percent and it's also a stock that Warren Buffett still continues to hold in his portfolio today I think it's always great to own a company that relies on the consumer food staple product as their main product offering because food is not going anywhere and even in tough Economic Times people still have to eat so no matter what their products are going to be probably in demand now I will say out of all the stocks in my portfolio I'm going to keep a closer eye on Craft Heinz Co and the reason is is that in the past couple of years their profits have been trending a little bit downwards not by a ton by any means but just by a couple percentage points it's still something to keep in mind and the the reason I think that's happening is that oh there's a there's been this like big shift away from like packaged and like processed goods and people are trying to eat healthier and so for a company like craft Heinz Co that offers a shelf life product this could be a threat and that's just something I'm going to keep in mind I'm not really worried about the dividend of Kraft Heinz Co however if things don't turn around financially especially in the next couple quarters or maybe the next year I might let go of craft heinzko in favor for a different allocation in my portfolio all right pick number five is another controversial pick but it's actually Exxon Mobil it's controversial because it's not necessarily a green option and oil is not something hopefully that we're still relying on in the next 30 or 50 years but for now fossil fuel dependency is still pretty big and if you were to invest in Exxon this year energy is actually one of those sectors that has been outperforming this year so it would have probably benefited your portfolio quite well if you did have this whole thing refined oil products like petroleum gasoline and heating oil products are currently going for a premium on the market and with the Ukraine Russia War still going on and ends nowhere in sight I don't anticipate Energy prices coming down anytime soon Exxon right now is raking in the profits and they pay their shareholders a 3.78 dividend yield which amounts to 3.52 cents per share per year that you own them the other great thing about Exxon this year specifically is that they're up 50 year to date versus a stock like Google which is actually down 30 so as you can tell energy is doing really well this year and Tech is getting crushed Exxon also makes for a really great inflation hedge because if you look at any CPI reading the biggest sector that always goes up in price is energy so Exxon stands to benefit from that and if you really think about the entire supply chain as a whole oil is used in almost everything from delivering your food on trucks or maybe even harvesting your crops with the machines that they use I'm personally a fan of their dividend and I think holding Exxon as a diversification measure in your portfolio is a good one now there are some risks to Exxon as well which is that governments are more shifting towards green energy so depend on how long that takes we could see a threat to Exxon but still I don't know if the dependence on fossil fuels is just going to go away just like that all right the next stock on our list if you can already guess based on the soundtrack that's playing is Home Depot Home Depot is seriously one of my favorite stocks it's also a really great place to visit in case you need some Home Improvement done and right now they're paying a 7.60 dividend per share that you own which equates to about 2.7 percent of a yield Home Depot is one of those companies that should remain a beacon of security and stability and both Home Depot and its competitor Lowe's have been outperforming the S P 500 and NASDAQ over the last decade Home Depot is the largest Home Improvement retailer in North America with over 2 300 stores and 150 billion dollars in revenues in the past 12 months in terms of the revenue breakdown nearly half of the revenue comes from professional contractors and the other half comes from DIY customers I think that Revenue breakdown is pretty healthy because let's say one segment stops buying at least you have the other segment to kind of rely on to help make up for that Home Depot is also wildly profitable they have 33 gross margins and 17 ebitda margins which means that their dividend is not going anywhere anytime soon another reason I Like Home Depot is that right now in the United States there aren't enough homes being built so as we catch up to that demand of homes wanting to be built we're going to have to see a lot more Home Improvement spending go up so who benefits from that Home Depot there are really only two retailers in the space for Home Improvement where else are you going to go it's either Home Depot or you go to Lowe's and because of that I think they have a monopoly on that Home Improvement sector which is pretty cool because if you have a monopoly on the entire sector you're probably going to be doing just fine as company it's kind of like owning Google stock you know how Google stock basically owns all of the search results well that creates a really strong economic moat and the same could be said for Home Depot all right there is a bonus stock that I actually want to throw in this video and that's actually going to be the ETF voo and vo not many people think of this but they actually pay a dividend if you you don't know what vo is it's an ETF that buys a small percentage of every company in the S P 500 so it's known as the S P 500 ETF and actually pays a dividend yield of 1.57 percent or about 5.65 cents for every share that you own I mainly want to add it in here because over the past 10 years I've been investing in vo and in the beginning the dividends weren't worth mentioning but these days it's becoming more significant so I wanted to call it out this is one of the bonuses of owning an ETF in your portfolio some of them actually do pay dividends I think some people forget that when it comes to the dividends I always reinvest it and just try to compound my position even further okay our last and final stock for today is Johnson Johnson and this is a stock that Warren Buffett still holds today and that's for good reason they pay a dividend yield of 2.7 percent so in line with JPMorgan Chase and that comes out to about 4.52 cents per share annually I think it's another one of those stable companies that's going to do well because of what it offers so if you didn't know Johnson and Johnson's most popular brands include Tylenol Listerine Band-Aid pepsid Vino and Zyrtec the company is pretty much immune to any economic downturns it's not like because we're in a depression or maybe if inflation is high or interest rates are high doctors are still going to be prescribing Johnson Johnson products to their patients the other thing I like about Johnson Johnson is that they are a dividend Aristocrat so that means they've been paying dividends to their shareholders for the past 50 or more years and they continue to increase it as well J J is a value stock that is going to do well in any type of environment they're up about one percent this year so that means they're outperforming the S P 500 they also have a bunch of cash on their balance sheet which I always like seeing and not much short-term debt which is a good sign even in the worst of recessions I think J Will Survive so that's why I really like them and I think that a large takeaway from all my Holdings today is that they're mostly safe and they're mostly dividends that you can count on all the time so I hope you enjoyed this video make sure to grab your toll-free stocks from Weeble with the link in description below I don't know how long that promotion is going to last so get it while you can if you are interested in other dividend videos I'll put them up right here on the screen and I'll see you guys in the next video which will hopefully be next week alright peace

Channel: Humphrey Yang

Views: 821,246

Keywords: humphreytalks, dividend stocks, passive income, dividend investing, top dividend stocks, best dividend stocks, dividend stocks to buy, best dividend stocks 2022, xom, abbvie, jnj, khc, jpm, hd, voo, pepsi, pep

Id: W9CTkPDm09c

Length: 15min 6sec (906 seconds)

Published: Tue Sep 20 2022