3 CHEAP Dividend Stocks PERFECT For Any Investor's Portfolio
When you look at the stocks in your portfolio, they all fall somewhere on a spectrum stretching from high-yield to high-dividend growth.
Dividend yield/growth spectrum
Generally, stocks with high yields don't tend to offer much dividend growth (if any), while those that do have a tendency to aggressively increase their dividends rarely have high yields.
With that said, there are always exceptions to the rule.
Some stocks exist that can play on both ends of the spectrum, and come complete with both a high yield AND a respectably high dividend growth rate. Here are 3 examples, all of which are worthy considerations for your portfolio no matter what your investment goals are:
American Tower Corporation (AMT): You may remember AMT from our discussion on "toll booth stocks" a few weeks ago. This company is one of the largest operators of cell towers in the world, and the stock's dividend yield has been pushed way up to now over 4% as the share price continues to decline (down almost 25% YTD) — a welcomed addition to the already high five-year dividend growth rate.
Source: Seeking Alpha | AMT dividend scorecard
Source: Seeking Alpha | TROW dividend scorecard
United Parcel Service (UPS): Easily the most recognizable name out of the bunch is UPS, whose share price has dropped nearly 20% just in the last 6 months. In doing so, the dividend yield has soared to a whopping 4.17%, which is about 33% higher than the company's 5-year average yield. In addition, the company has increased its dividend by over 12% on average over the last 5 years, making UPS an attractive option for both income seeking and growth-oriented investors.
Source: Seeking Alpha | UPS dividend scorecard
Do you have any of these stocks in your portfolio? Also, can you think of any more like them that offer the best of both worlds? Write to me here and let me know. Here are four more stocks that I think check all of the boxes, and they all look pretty cheap right now.
Also, a big thank you to the 29 readers who responded last week. You rock! 🙌
In case you missed last week's newsletter, you can read it here.
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These 3 Dividend Kings Are Getting DESTROYED - I’m Buying More 💰
As you already know, share prices all across the board have been getting killed, so much so that it’s not just the ancillary, cigar butt type stocks that are correcting. Even the big blue chip stocks that we consider to be of the highest quality are getting cheaper, presenting to us investors a fantastic buying opportunity.
In this video, I’m going to tell you about three stocks that look ripe for the picking, all of which are dividend kings in my portfolio that I plan to start buying more shares of.
CAREFULLY CURATED
📺 How To Make MILLIONS With Dividends - Ari Gutman's "Masters of the Market" series has quickly become one of my favorite video series on YouTube, and this hour long interview with Kevin Burgess, in my opinion, was one of the best episodes yet. Kevin is one of the few individuals in the dividend investing community who is ACTUALLY living off dividends, so it's always interesting to hear what he has to say. You learn something new every time.
🎧 The Fundamentals of Stock Investing - One of the hardest parts about investing in stocks is knowing where to start, but this episode of "We Study Billionaires" featuring Daniel Pronk and Jake Ruth shed some light on that. In the episode, they dive into everything they wish they knew as a beginner, the books they would have read, and the biggest investing mistakes they would have tried to avoid.
📚 14 Must-Have Dividend Stocks - If you're looking for more investment ideas, then this list of 14 must-have dividend stocks is a great place to start. Going through it myself, there were actually quite a few companies I had never heard of before but might have to look into like Terex (TEX), which has a super high 3 year dividend growth rate of almost 21% - wow!
SINCE YOU ASKED
"What's some advice that you would give to people who are just starting their dividend investing journey?"
- Ruby & David | YouTube
I absolutely love this question, and I've got three pieces of advice for any new investor who is just starting out:
Trust the process: Dividend investing is a long-term game. Building wealth with this doesn't happen overnight, and there are many instances along the way where your patience and determination will be tested. When that happens, just know that you get one step closer to reaching financial freedom with every investment and re-investment. When it feels like no progress is being made, zoom out and you'll be able to see just how far you've actually come.
Don't chase yield: This is hands-down the most common mistake made by investors. While high dividend yields like those from AGNC or TSLY are sometimes impossible to ignore, they may not be sustainable over the long term. You're ultimately much better off investing in more stable, higher quality stocks/ETFs with more sustainable growth and dividend growth potential.
Start learning financial statements: Learning how to read an income statement, balance sheet, and cash flow statement is essential if you're going to be investing in individual stocks, and can help you evaluate whether a company has the financial stability and strength to continue paying and growing dividends over the long term.
Have a question? Ask me here to see it featured in an upcoming newsletter.
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