Ready to add some steady income to your portfolio? Look no further than dividend-paying stocks in the US stock market! These stocks offer the potential for both long-term growth and a reliable stream of income, making them a popular choice for savvy investors. With a wide range of options to choose from, finding the right dividend stocks for your portfolio can seem overwhelming. But with a little research and due diligence, you can turn your portfolio into a cash-generating machine. So why wait? Start exploring the 10 High-Dividend Paying Stocks today!
If you want to earn some passive income and enjoy your money increase on your own without you doing much? Then investing in high dividend-paying stocks is one of the best ways to do so.
But remember, you also need to be aware of the do’s and don’ts of the stock market.
What are Dividends?
So let’s understand it with an example. Let’s say a company, ABC, earns a revenue of $100 in a year. Its Profit After Tax (PAT) and after paying interest is $15. Now it is their hard-earned money. They would have two options for utilizing these profits; either they would retain these profits (Retained Earnings) for the future, i.e., expansions, capturing new markets, or they could return this money to the stockholders. So, the amount or percentage of the profit that a company gives to its stockholders is dividends.
Most companies in US exchanges pay regular dividends to their stockholders. And it is one of the easiest methods to earn passive income without doing much. We can also take the example of the super investor Warren Buffet prefers investing in stocks with high-dividend yields and pays regular dividends.
Defining Dividend stocks
Now dividend stocks are the stocks of companies with regular and stable earnings and revenues over the years and have a diverse and well-established business that is very much prone to high volatility in the market. These companies regularly pay their stockholders with high dividend yields, which might be paid in cash or issue additional stocks to the existing stockholders.
Well, there is no definite way of finding the best companies to invest in. However, one of the many ways to gauge a high-dividend paying company is to look out for their dividend payout ratio (DPR), which tells the amount of dividend paid from the company’s net earnings. This measure benefits investors as it gives the investor insight into the company’s motive by looking at the percentage of net earnings it is paying as dividends and the amount it retains for further reinvesting in the future.
Suppose this ratio is above 100 or negative. In that case, the company is borrowing to pay dividends to its stockholders. You should start to worry about it if you have invested in one of such companies, as their earnings and dividends are at a higher risk of volatility.
Below we have compiled 10 high-dividend paying US stocks that have paid regular dividends to their stockholders over the years.
Top 10 Highest-dividend paying stocks
Pioneer Natural Resources Co (PXD)
It is one of Irving, Texas’s leading American natural resources companies. It is engaged in exploring hydrocarbons and producing low-cost and low-carbon-content oil and gas from the Permian basin of Texas to provide sustainable and cheap energy to communities and people worldwide.
The company has one of the highest dividend yields among the US stocks, with a Forward Annual Dividend Yield of 10.85%.
Altria Group Inc. (MO)
The Altria Group Inc. is an American-based company that is one of the world’s largest producers and marketers of Tobacco and Cigarette-related products. The company operates in many countries across the globe and is based in Henrico County, Virginia.
The company has a dividend payout ratio of nearly 80% and a Forward Annual Dividend Yield of 8.52%.
VF Corporation (VFC)
It is an American-based global apparel and footwear company founded in 1899 by John Barbey; the company is headquartered in Denver, Colorado. The company has 13 brands categorized into three distinctive categories; Outdoor, Active, and work.
VF Corporation has a Forward Annual Dividend Yield of 6.70%.
Verizon Communications Inc. (VZ)
Verizon Communications Inc. is an American-based multinational telecommunications company and a Dow Jones Industrial Average corporate component. The company is based in Manhattan.
Verizon Communications Inc. has a Forward Annual Dividend Yield of 6.42%.
AT&T Inc. (T)
AT&T Inc., the famous American telecommunications holding company based in Whitacre Tower in Dallas, Texas, is traded at NYSE with the symbol of (T). AT&T is the largest telecommunications company in the world in terms of revenue and the third-largest provider of mobile phone services in the United States.
The company has a Forward Annual Dividend Yield of 6.16%.
Kinder Morgan Inc. (KMI)
Kinder Morgan Inc., one of Northern America’s largest energy infrastructure companies, specializes in owning and controlling oil and gas terminals and pipelines. It has one of the largest networks of pipelines and operates on approximately 83,000 mi of pipelines and 143 terminals.
The company has a Forward Annual Dividend Yield of 5.95%.
ONEOK Inc. (OKE)
ONEOK Inc., which trades in the NYSE with the symbol of OKE, is a diversified American-based corporation that primarily focuses on the natural gas industries and is based in Oklahoma. The company is also a part of the S&P 500 and is one of the fortune 500 companies. It was founded in 1906 as an Oklahoma Natural Gas company but changed its name to ONEOK in December 1980.
The company has a Forward Annual Dividend Yield of 5.60%.
Walgreens Boots Alliance (WBA)
Headquartered in Illinois, this American-British-Swiss holding company in the pharmaceutical industry owns several pharmaceutical manufacturing, distribution, and retail chains under its domain that are operating across the globe.
Walgreens Boots Alliance Inc. trades at NYSE with a symbol of (WBA) and pays a Forward Annual Dividend Yield of 5.26%.
LyondellBasell Industries NV
LyondellBasell Industries NV is a chemical company operating in various countries worldwide. It is incorporated in the Netherlands, with its US office headquartered in Houston, Texas. LyondellBasell Industries NV is the largest licensor of the most widely used plastics; Polyethylene and Polypropylene technologies.
The company trades at YSE with a symbol of (LYB) and pays its investors a Forward Annual Dividend Yield of 4.98%.
Philip Morris International Inc.
Philip Morris International Inc. It is an American Multinational Tobacco company operating in more than 180 countries globally. The most famous product of the company is Marlboro. It is also often referred to as one of the companies known as Big Tobacco.
The company trades at NYSE with a PM symbol and pays its investors a Forward Annual Dividend Yield of 4.90%.
Enjoy the Dividend
Dividend Yield is the income that a company pays its shareholders compared to the price of that stock. It is calculated by dividing the dividend amount by the stock’s price. A high dividend yield may seem lucrative and appealing. Still, it doesn’t necessarily mean that the stock is among the best or better than those with lower yields.
The dividend yield or payout ratio is one of the tools used to screen dividend-paying stocks that might be potentially worth buying. Where a high dividend yield seems appealing to any investor. It also indicates that the company is struggling to expand the business or doesn’t have any future projects in the pipeline, which may hinder the company’s growth and will be reflected in its returns in the future.
So, it is prudent to invest time and do your proper research before investing in any of the stocks. The money you put in those companies is your hard-earned money.
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