When trading stocks, you have two options – you either do it yourself, or you hire a broker to do it for you. Either way, it’s an unpredictable business. That means you could lose money, or you could win enough never to have to work again. The key is to know which stocks, REITs or ETFs, to invest in, because the more successful they are, the more dividends you’ll receive. This is why we’ve compiled for you a short list of the best high dividend stocks to invest in. From Warren Buffet tips to forecasts for 2016, this guide has it all.
High Dividend Paying Stocks Recommended by Warren Buffet
If Warren Buffet recommends something, you know it has to be good. If there is one thing this man knows, that is money and business. Therefore, here are his top choices, pulled out from Buffett’s Berkshire Hathaway portfolio.
This telecom giant is one of the biggest things Buffet pulled out of his fun bag in his third-quarter portfolio. The new stake he disclosed comes up to a whopping 59.3 million shares. This rounds up to about 1.5 % of his portfolio. Even so, AT&T is his biggest dividend payer, thanks to a 47 cent payout each quarter and a 5.8% dividend yield. Buffet’s Berkshire has a slice of AT&T shares since they bought DirecTV in July 2015. When the deal was completed, DirecTV’s shareholders, Buffet himself among them, got close to 1 900 shares of the telecom corporation’s common stockpile. Apart from that, they also received $28.50 in cash for each and every share. They also have a low beta and large mutual funds, according to the NYSE and the Canadian TSX. This makes them somewhat risk-free.
2. General Motors
The main appeal for General Motors is their 4.1% dividend yield. Their current distribution comes to 36 cents. It grew this year, from 30 cents, which is a good sign. Buffet began his romance with General Motors back in 2012, and he is now the owner of some 50 million shares. This amount rose as well, from 41 million shares in the quarter before. The car makers now represent 1.2 % of Warren Buffet’s portfolio. “Romance” was not a lightly-chosen word, as Buffet supports Mary Barra, the CEO of General Motors, in a friendly way. He has stated he’s impressed with her and that she’s “dynamite”. This seems to be reason enough for you to want to get some of her company’s shares as well. They are one of the safest and most preferred ways to go because they are yielding good dividends. They are stable, and the cost is low, but they are not underpriced at the moment.
There’s hardly any need for explanations when it comes to a company like IBM, but let’s look at some facts, nonetheless. They have a 3.9 % dividend yield and a 1.30$ payout. It increased since last year when it came to $1.10. IBM represents 8.9% of Buffet’s portfolio since he first invested in 2011. It’s a staggering amount which leads us to believe it is a good idea to invest in IBM stocks monthly, as they might yield good dividends over time. At a Berkshire Hathaway meeting in Omaha, Buffest said he has absolutely no regrets about choosing IBM over their rivals, Apple.
4. Procter & Gamble
Looking at the figures, we can see that this consumer goods titan has a 3.6% dividend yield. Their payout represents 66.29 cents, and it increased from 64.36 cents, early in 2015. Procter & Gamble and Buffet have been playing the game together for a very long time now. Even so, everyone was surprised when Buffet announced in 2014 that he had struck a one-of-a-kind deal with their partners. He had decided to buy its Duracell business. If you’re looking for the figures, you won’t find them. The arrangement is not listed on the Berkshire balance sheet. The reason is that it will be closed in the first quarter of 2016. Procter & Gamble represents 3% of Buffet’s portfolio.
My money is on the fact you never guessed you could buy this kind of merchandise at Walmart. But you can, and it’s a good idea too. They have a 3.4% yield and a 49 cent dividend. The latest upping was at the end of 2015. The best part about investing in Walmart is that the discount giant is a dividend aristocrat. That means they have increased their quarter-based distribution for the past 25 years consistently. Now my money is on the fact you didn’t know Walmart was an aristocrat. Warren Buffet knew, and he clearly made the right choice when he added Walmart to his portfolio. It’s his 8th holding, and it stands for 2.9 percent of it.
Best High Dividends Stocks for 2016
The countdown of the high yield dividend stocks continues with some forecasts for 2016. You can use these tips to choose the best solution for you.
This is the biggest farm products company in the world. Their current market cap (capital) is over $20 billion. The same as Walmart, Archer-Daniels-Midland too is a dividend aristocrat, and it’s even more important than Walmart. They have managed to pay dividends for the past 40 years consecutively. The company has some favorable prospects, experts say. The reason is that crops are always cyclical. They are a bit low right now, indeed, but they will rise again. And when they do, that will be the perfect moment for you to swoop in and buy some stocks. They are very likely to produce high dividends. Another reason is the fact that global food consumption is growing. In laymen’s terms, we, as a global nation, are consuming more and more food every year. The more food we need, the more Archer-Daniels-Midland needs to produce. This means their stocks will rise again.
Exxon is an interesting case as far as growth and investment go. Many experienced traders say that the company is somewhat of a safe bet. The best argument is the fact, even though oil prices have gone down by a whopping 60% in 2014, the following year, in 2015, Exxon still managed to render some $17 billion in profits. This means Exxon is capable of producing profit in absolutely any economic climate. For traders, this represents a secure deposit and almost guaranteed dividends. Exxon also has a varied business palette that helps it stay afloat and render such incredible surpluses. After all, we are talking about oil and gas. As far as trading goes, oil is the best asset to invest in, because it relates to energy as well. Its utility seems to be forever lasting, so it’s always a good idea to choose them.
This is a manufacturer of Diesel Engines, and they are the best in the world. They too, the same as Exxon, took a hit in 2015. Because they grew quite slowly in emerging markets and because they have been confronted with the strong US dollar, their stock went down 40%. You might think this is a bad thing, and it is, but just for them. For investors, this is a great opportunity to buy stocks at very low or cheap prices. Normally, stocks for a company such as Cummins would have been more expensive. The company has a very large history, seeing as it was founded in 1919. For the past 25 years, they have been paying dividends regularly, either at a steady rate or even at an increasing one.
9. Deere and Company
They are the largest producers of farming machinery on the planet. They also have forestry equipment, as well as construction machines. As an aristocrat, they have been paying steady dividends for the past 27 years consecutively. They have quite a reputation for being very friendly to their shareholders. They too are on Warren Buffet’s list but as a more recent deal. Deere and Company’s story is similar to Exxon’s. Although they have been suffering, they still made quite the profit in 2015. They experienced some distress because grain prices went down. This means that the farmers had less income to work with and, consequently, bought less machinery. Even so, Deere and Company made $2 billion in 2015. This means that, as far as stocks with high dividends go, Deere is one way to go.
10. W.W. Grainger
The last, but not least on the list is the maintenance, repair and operations world leader, W.W. Grainger. They started doing business in 1927, and they have been paying steady dividends for the past 43 consecutive years. That’s quite an amazing rate. The reason behind all their success is the fact that they are massive, as far as business goes. They are an umbrella corporation, holding some 713 branches and 34 centers of distribution. As far as 2016 is concerned, W.W. Grainger has excellent prospects. Their current dividend yield is 2.4%. That’s why they’re considered a ‘blue chip’ quality company.
As a disclaimer, this top lists the best ten stocks to invest in, but should not be considered the safest route to take. It’s always good to do some research before you invest. You can also discuss your options with a broker.