5 Best Stocks that Pay Dividends

Dividend stocks can be a great choice for investors looking for regular income. Investing in them can be as easy as buying an ETF. Dividend stocks distribute a portion of the company’s earnings to investors on a regular basis. Most American dividend stocks pay investors a set amount each quarter, and the top ones increase their payouts over time, so investors can build an annuity-like cash stream. Investors can also choose to reinvest dividends. Here’s the more information about the best stocks that pay dividends and how they work.

5 Best Stocks that Pay Dividends

1. Exxon Mobil (XOM)

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Dividend Yield 9.1%

The first of two oil and gas companies on our list, Exxon is larger than Chevron (CVX), below, but has a distinctly higher dividend yield. Like the rest of the energy sector, Exxon faces a challenging economic climate due to collapsing oil prices, and XOM stock fell 54% from peak to trough in the first three months of this year. Exxon has elected to maintain its annual dividend increases, however, keeping its record of 37 years of consecutive dividend growth intact. This means it’s still on the Dividend Aristocrats list, although its dividend payout ratio hit 154% at one point.

2.Chevron (CVX)

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Dividend Yield 7.4%

Chevron is one of the world’s largest oil companies, with energy exploration, production, refining, trading and transport operations that circle the globe. Founded in 1879, Chevron has paid dividends since 1970.

Like the rest of the energy sector, Chevron’s stock tanked in early 2020, but may have bottomed in late March, after losing 55% of its value.

3. IBM Corp. (IBM)

File:IBM logo in.jpg - Wikimedia Commons

Dividend Yield 5.9%

Big Blue has been a laggard performer among Dow 30 stocks in recent years and fell 40% from its high to low during the early 2020 selling panic. IBM’s revenues have been declining since peaking at $107 billion in 2011. IBM was slow to adapt as computing and data storage moved to the cloud, and competitors were quick to swoop in. IBM reacted by winding down older operations and investing in faster-growing businesses, but margins and cash flow eroded despite their best efforts, and the stock peaked in 2013.

4.Boeing (BA)

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Dividend Yield 5.2%

Boeing took a drubbing early this year, falling 74% from last year’s high to the Q1 2020 market low. But in the final days of March, BA’s share price rose by an impressive 80% and was one of the Dow 30’s top performers. Fiscal stimulus was a major reason behind the turnaround, as the aerospace firm is eligible to receive a piece of the $500 billion made to distressed companies by the U.S. Congress in the wake of the coronavirus pandemic. Above are the the best stocks that pay dividends on a life time, so you got an information on Stocks.

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