💸 Top 10 Dividend Stocks
Today is Dividend Day.
In this series, I will teach you 5 things about dividend investing in less than 5 minutes.
1️⃣ A Record Year for S&P 500 Dividends
The S&P 500 paid a record dividend of $74.83 in 2024
That’s 6.4% more than 2023’s dividend of $70.30.
This was the S&P 500’s 15th year of consecutive dividend increases.
Some interesting companies that started paying a dividend in 2024?
- Meta Platforms
- Alphabet
- Salesforce
- Booking Holdings
- WESCO International
2️⃣ Indexes Are Full Of Dividend Payers
It’s no secret that the US indexes are concentrated.
The top 5 companies make up 27% or more of all 3 major indexes.
One thing these big companies have in common?
Paying dividends.
The image shows the top 5 stocks in the S&P 500, Dow Jones, and Nasdaq indexes.
Amazon is the only one of these top companies that does not pay dividends.
3️⃣ An investing quote
Josh Peters wrote"The Ultimate Dividend Playbook".
He believes in a dividend-focused investment approach, emphasizing the importance of investing in companies with sustainable and growing dividends.
Dividends offer reliability that capital gains can't match. They’re cash in your pocket—real, steady, and dependable.
“Dividends are tangible, immediate, and certain in a way that capital gains can never be.” - Josh Peters
4️⃣ Top 10 Dividend Stocks
Recently, a list of top 10 dividend stocks was released by a research company.
The list is full of Dividend Kings and Aristocrats.
Here’s the list:
On Wednesday, you’ll receive an article breaking these companies down further.
5️⃣ Example of a dividend stock
One of the interesting stocks from this list? Medtronic.
Medtronic makes medical devices doctors use to treat health problems, like heart disease, diabetes, and chronic pain.
Medtronic has raised its dividend for 48 (!) years in a row.
- Profit Margin: 11.4%
- Forward PE: 15.3x
- Dividend Yield: 3.3%
- Payout Ratio: 84.7%
Source: Finchat
That’s it for today
In case you missed it:
PS… A lot of people have been asking this question:
“Is there a Compounding Dividends Community?”
Just so you know...
Up until now, the answer has been “not yet”.
One of the most popular features of Compounding Quality has been the Circle Community.
Many Partners of Compounding Quality think that the Community provides even more value than the newsletter itself.
I’m happy to tell you that the Compounding Dividends Circle Community will be launching soon!
BUT only Partners of Compounding Dividends will have access - subscribe today if you don’t want to miss out.
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Used sources
- Interactive Brokers: Portfolio data and executing all transactions
- Finchat: Financial data