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7 best dividend-paying stocks

A dividend is a payment or recompense offered by a company to their shareholders or investors in the form of cash or stock. It’s a policy of attracting investors. When this payment is in the form of stock, it is called dividend stock. It’s a fraction of share paid for single existing share. Dividend stocks are not always safe, dividend-paying companies also go through a hard time. There are so many dividend stocks offering global corporations in the USA and finding out 7 best dividend stocks among them is very difficult for an investor. There are few things; the investors have to follow before investing in shares. Following are some hints to identify the best dividend stocks:

  • A corporation with a stable dividend history: Dividend yield is a significant feature while investing in a dividend stock. Dividend yield or dividend-price ratio is a percentage that can be calculated by dividing annual dividend payment per share divided by current stock price. It’s risky for an investor while dividend yield in stock is more than 10%. In general stocks with more than 4% dividend yield can be identified as a high dividend stock.
  • It’s crucial to check payout ratio of the company; it should not be exceeded 80% of the per share cost.
  • Choose a company which has a global market.
  • Financially strong companies are trustworthy for investors.
  • A company which has the policy of increasing dividend.
  • Growth consistency of the company.

Below are seven best dividend stocks in the US right now:

Apple Inc (NAS: AAPL): Largest multinational information Technology Company by revenue in the world valued over US$700 billion as of Jun 2017 with worldwide annual income of more than US$200 billion for 2015, 2016 fiscal year.

Headquartered in California, USA, Apple designs, develops and sells consumer electronics, computer software like iOS and macOS operating systems and online services with the hardware products like iPhone, iPad, Mac PC, Apple Watch, etc. With a dividend yield of 1.76% (US$2.52), Payout ratio of 28.2% and annual dividend growth more than 9% for last four years, Apple is one of the favorite stocks among the investors.

General Motors (NYSE: GM): Commonly known as GM is global automotive company spreading over 35 countries headquartered in Detroit city of Michigan state, USA. It has the record of selling 10 million vehicles in the year 2016. GM is a manufacturer of cars, trucks and automobile parts, markets and distributes them worldwide under various brand names. GM is one of the best credible investment opportunities with its dividend yield of 4.36% and payout ratio 24.7. General Motors Company with a progressive market capital value 50.8 billion USD and with the revenue rate in 2016 over 166 billion USD. General Motors returned $4.8 billion to shareholders through dividends and share repurchases in 2016 and increased its dividend by roughly 6% in the same year.

The Coca-Cola Company (NYSE: KO): Multinational beverage company headquartered in Atlanta, Georgia. KO is widely popular for its primary product Coca-Cola, which was invented by John Smith Pemberton in 1886, later in 1892, it was bought out by Asa Griggs Candler. Although Coca-Cola is the main beverage of the company, it has more than 500 brands and 3,000 different beverages. Currently, per share of stock price around 40 USD, Coca-Cola has paid dividend quarterly since 1920 and increases it yearly in each of the last 54 years. The dividend yield of KO is 3.33%, and the payout ratio is 78.7%. Its current market capitalization value is 187.88 billion USD and the annual revenue of the company in the year 2016 was more than 41 billion USD. Coca-Cola company is one of the best choices of successful investors.

AT&T Inc (NYSE: T): World’s largest communications company founded in 1885 headquartered in Dallas, TX. AT&T is the provider of mobile services, Fixed Phone services, Next generation TV, High-speed internet. The company is dedicated to the development of the country and in last five years, it has been investing $135 billion in the U.S. economy. Since 1885, AT&T consistently has increased dividend quarterly. Annual Revenue of AT&T in 2016 was 163.8 billion USD, and current market capitalization is 221.75 billion USD. With the dividend yield 5.22% and payout ratio 67.1%, AT&T is one of the best choices of Investors.

United Parcel Service (NYSE: UPS): Founded in 1907, UPS is the world’s largest worldwide package delivery company, headquartered in Sandy Spring, Georgia of United State. UPS delivers around 15 million packages daily all over the world, in 2016 it was 4.9 billion. The company’s delivery system includes more than 220 countries. The company has its airline and air cargo along with more than 100,000 package cars, vans, tractors and motorcycles for operating the delivery services. In last ten years, the dividend history of the company has increased by 8-9% per year. Payout ratio of the company is 55.8% and the dividend yield is 3.02%. The market capitalization of the company is 94.66 billion USD, and the revenue was 60.91 billion USD in 2016. UPS is one of the most promising dividends paying stock.

The Boeing Co (NYSE: BA): The Boeing Company is the world’s largest aerospace American Company, corporate office in Chicago and is spreading over more than 65 countries. Boeing is the designer and manufacturer of commercial and military aircraft, satellite, electronic and defense systems, Launch systems and weapons. The company provides support services along with the products. The market capitalization of the company is 121.95 billion USD, revenue in 2016 was 94.57 billion USD. The average dividend growth rate per share of Boeing Co during the past five years was 23.40% per year. Current dividend payout ratio 60.3% and the dividend yield is 2.81%. The Boeing Co is investors one of the best picks among 7 best dividend stocks.

Costco (NAS: COST): Costco is a wholesale retailer spreading over 100 of locations all over the world. The first location of the company was San Diego, California founded in 1976. Costco stores are opened for only members since it is a membership warehouse club. The company provides its exclusive offers to their members during purchase and full refund of the membership before it gets expired. Revenue and growth rate of Costco is always higher than its contestants, in 2016 revenue of the company was 118.7 billion USD. Costco is an excellent choice for investors with current market capitalization 67.19 billion USD. The current dividend yield of Costco is 1.26% and the average dividend growth rate per share during last five years is 13.80%.

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