What are the best dividend stocks for 2018,
I’m glad you have asked because I’ve been doing some research and I’ve come up with
my top 10. These stocks are in no particular order and they all have different risk and
reward factors to them. You will see some stocks with high dividends but with more risk
to them and some with lower dividends and obviously less. Clearly the ones that you
prefer will depend on your investing style and appetite for risk.
Before I begin don’t forget to subscribe and hit that bell icon for more videos on
investing and personal finance. Stock 1: Exxon Mobile. So Exxon is obviously
a big American oil and gas company. They’ve got a nice dividend yield of 3.5%. It’s
got very low debt compared to it’s equity which is important to look for with regards
to dividend or income investing. I’m not that happy with their earnings and revenue,
it’s slowly been decreasing over the past couple of years. But we will see an increase
in 2017’s figures according to their quarterly stats. Stock 2: Coca-Cola. Coca-Cola is obviously
the fizzy drink company, but more than that they own a tonne of other companies as you
can see here. It’s the stock that made Warren Buffet a lot of money. So coke is definitely
more of a cash cow company these days, with their revenues and earning slowly decreasing.
They pay a nice dividend yield of 3.1 %. Ok Dividend stock 3 is American Water Works.
This company deals in what I like to call blue gold, or water, same thing. American
Water Works yields a dividend of 1.95% so lower than coke and Exxon. But, I see consistency
in this stock. Its earnings and dividends have grown slightly year in year out for a
number of years. So it’s pretty darn likely you won’t see dividends decrease in this
company. If you’re going to be relying on your dividends then consider this stock. Now some people might thinking surely you
can find higher dividend stocks out there. And the answer is yes of course I could but
if you got a stock yielding say 5% it comes with more unlikely hood that they’re going
to be able to continue to pay that dividend. Remember generally speaking the higher the
dividend the higher the risk, as with my next company.
8point3 Energy Partners stock is my 4th dividend share. They deal in the solar energy industry
and are owned by 2 bigger energy companies which give it a solid competitive advantage.
This stock pay’s a dividend of 7.6%. Obviously with a dividend that big in today’s market
the stock comes with some risks. The main one being that it’s a new company and it
has no solid proof of stable earnings in the past. So its likelihood of maintaining these
dividends is a lot lower than some of these other stocks. Stock 5: Brookfield property partners. It’s
a company that invests in commercial property around the world. They pay a really high dividend
of 5.45%, but we don’t know how long they will be able to continue to pay this dividend
as I’ve seen decreases in earnings over the past couple of years for this company. Stock 6: Medtronic. So, Medtronic is one of
the world’s largest medical equipment companies. They develop and manufacture medical devices
for hospitals in approximately 160 countries. Wow that’s more than what, ¾ of the total
countries in the world. They pay a dividend of 2.11%.
Stock 7: Target Stock. I got to say I’m a fan of this stock and I feel that investors
have underpriced it. Sometimes in a market like this it tends to happen with these types
of shares. So I’m not going to get into what target is, you all know what it is. It’s
got a very nice dividend yield of 3.2%. There’s a nice consistency in the stocks dividends
with dividends growing slightly year in year out.
Stock 8: Chevron. Chevron is a multinational energy corporation that deals in pretty much
every aspect of oil. They’re paying a dividend of 3.31%. What I like about this company is
that they have a low D/E ratio of 0.23. What I don’t like about the company is that their
earnings and revenue have been decreasing for a couple of years now.
Stock 9: General Mills. General Mills is basically a food manufacturing company, making consumer
foods through retail stores. They pay a solid dividend of 3.26% and it should be reasonably
sustainable looking at their past earnings and revenue.
And number 10: Gilead Science. So Gilead Science is a pharmaceutical company researching and
developing new drugs for patients with life-threatening diseases. They pay a solid dividend of $2.08
which gives you a yield of 2.48%. The one thing I would say about this stock for dividend
investing is that their dividend has not been stable in the past. But their P/E ratio is
around 10 so they should be able to afford that dividend. Their earnings are slightly
unstable but unless they have dramatic decreases in earnings they should be able to keep up
that dividend and grow their company at the same time. So those are my top 10 dividends stocks for
2018, are there any companies that you think should have been on the list, that I missed
out on. Let me know in the comments. Also don’t forget to do your own research
on each stock guys before investing. The purpose of this video was to give you a brief summary
of these dividend stocks. Hit that like button if you found this video
helpful, I always appreciate the support, thanks guys for watching and have a great
rest of the day!