Master Financial

Dividend stocks are one of the most popular ways to make passive income. Here are some of my favorite stocks/ETFs that have high dividend yields AND maintain/grow in value.

Realty Income (O)

Realty Income Corp is a real estate company that mainly operates in California. Even with a drop due to Covid19, the stock has still grown 40% in the last 5 years and is well on its way to recovering back to its peak of $82 back in February. Realty Income is currently sitting at around $60 at the time of writing and has been recovering fairly steadily for the past 3 months. I predict that unless the market as a whole has another big recession, Realty Income’s stock price should continue to grow, which will give you nice growth in addition to it’s high dividend yield. They have monthly dividends that have been occuring for over 510 consecutive months now. The actual dividend yield is currently around 4.5%, and has not been lowered or delayed due to the coronavirus. In addition, their reported revenue has actually risen this year, and has blown the expected EPS out of the water.

2. PowerShares S&P 500 High Dividend Low Volatility ETF (SPHD)

SPHD is an index that includes the 50 least volatile companies chosen from the 75 highest dividend yeilding companies on the S&P 500. SPHD has a dividend yield of around 5.3%. Although this stock did decrease quite a lot during the pandemic, as can be expected, it has been recovering steadily for the past three months. This ETF has been historically very steady in the past and is quite literally one of the safest options to invest in. Although growth is quite slow, is is super stable and should continue to grow in value as the markets conue to recover.

3. Altria Group Inc (MO)

This stock is a little controversial due to its selling of tobacco and other related products, however, it has truly great dividend yields. The stock price can fluctuate a bit, but the company is massive and certainly won’t be going away any time soon. If you can purchase this stock during a low point at around $35-40 I don’t see it decreasing in value in the long-term. Right now, the general consensus from wall street is that Altria Group is a buy. The dividend yield for Altria is a whopping 8.18%.

4. Aflac Inc (AFL)

This is a great buy both for dividends and in terms of actual stock growth. Aflac’s dividend yield is 3.1%, which isn’t extremely high, but Aflac makes up for in in stability. Aflac is a great safe buy, it should continue to rise in price over the next years and has lots of extra cash built up. Although commonly known for its duck commercials, Aflac is an extremely popular insurance provider in both America and Japan. Aflac isn’t extremely exciting, but isn’t volatile and delivers pretty good dividends for its investors.

5. Johnson & Johnson (JNJ)

JNJ is one of the biggest healthcare companies around. They have a dividend yield of 2.59% and their stock has recovered greatly from the market drop already. It’s dividend has grown 6% in the last three years alone and its earnings growth rate is also abnormally high. JNJ is a stable and secure company that is a great pick to hold onto for the long run. It is rather expensive (trading at around $150 currently) but, its value should continue to grow for a long time to come.

Understanding the stock market is fundamental to investing and having a good grasp on the economy.

The stock market tracks the supply and demand for various stocks/companies. The main big stock markets in America are the New York Stock Exchange (NYSE) and NASDAQ. The NYSE trades over 3,000 companies, including Walmart and McDonalds. NASDAQ is slightly less popular and has over 2,700 companies. NASDAQ has a large number of tech companies such as Apple and Microsoft. Trading in various forms: in-person, online, and through phone calls. Although online trading has generally become much more popular in the past years.

The stock markets can generally be used to see how well the American economy is doing. Although there can be descripancies, the stock market can be a good tool to evaluate the strength of the American economy at any given time.

The stock market isn’t really that complex in nature, but can be sporadic, which is what makes trading sucessfully so difficult. There is an abundance of websites that offer the ability to trade stocks and can now be done almost anywhere. Stocks are volatile, and can be extremely unstable. Bitcoin is a good example of the dangers of stock trading.