📈 Key Metrics for Top Dividend Stocks
Investing Secret
Hi Partner 👋
Do you know what the perfect drink is for Dividend Week? 🥤
Coca-Cola.
Because Coca-Cola is giving away more than $8 billion to its shareholders every year.
Coca-Cola is just one huge dividend payer, of course:
McDonald’s pays more than $5 billion in dividends every year
Bank of America almost $8 billion
And Chevron more than $11 billion
These stocks are money-printing machines
But how do you find companies with consistently high pay-outs?
You check if a company’s fundamentals support a high dividend in the long run.
Here are some key metrics to consider:
The payout ratio: It should be below 60%
The dividend yield: It should be above 1.5% (equal to the current yield of the S&P 500)
The dividend growth: It should be above 8%
And the revenue growth: It should be above inflation
If you pay attention to these metrics, you can find companies that pay huge dividends for a long time.
It’s how Warren Buffett found Coca-Cola.
At the time Warren Buffett bought the stock in 1988, the company paid just a $0.08 dividend per share.
This doesn’t sound very exciting.
But it was an incredible buying opportunity.
Because the stock was beaten down at that time…
And Buffett could load up Coca-Cola stock for just $2.79 a share.
Today, dividends are at $2.00 per share…
25 times higher
I recently published a brand-new report with my 5 favorite dividend stocks. Click here to grab it.
But dividend stocks aren’t just great at growing your money.
They can also protect your wealth when the going gets rough.
I’ll tell you all about it in my email tomorrow.
If you don’t want to wait, just head over here.
… It’s also where you’ll find an exclusive surprise for you as a Compounding Dividends Subscriber!
Everything in life compounds
Pieter
