Top 7 Dividend Stocks For 2020

by birtanpublished on August 16, 2020

How's it going everybody so today i'm going to be talking about my seven favorite dividend paying stocks i'm going to be listing off some really interesting facts about these companies some speculation about their future if you like stock market and investment

Type videos feel free to subscribe and like and a comment are always appreciated down below so the first company and it's not just a good dividend stock it's a good company in general

Is johnson and johnson ticker symbol jnj it's trading at 150 dollars in one cent per share and it has a market cap of 395.22 billion dollars so the thing i love about johnson johnson is its consistency

The company has raised its dividend 57 years in a row the company's been around 134 years and the company has a really solid revenue stream they're divided into me three main areas one is

Medical devices and diagnostics the second is pharmaceuticals and then the third is consumer goods we're all aware of the litany of consumer good products that they have

But the point i'm trying to make is that they're in really solid and defensive industries health care and consumer goods generally don't do as bad during recessions which is why i'm sure they're still able to raise

Their dividend despite recessionary periods we've had and another thing is the healthcare segment as a percent of the economy is growing into the future as well as it's just evidently going to become a bigger part of the economy as

The older generation begins to retire so they have rapidly increasing free cash flow it really surprised me in 2016 they had 15.5 billion and then in 2019 they had 19.9 billion so that shows they are growing that free

Cash flow number that's really good to see earnings per share is also trending in the right direction and it has a 50 payout ratio which is again is very sustainable and if i had to pick one stock this is a

Side note if i had to pick one stock forgetting whether it's a dividend stock if i had to pick one stock to invest in and put all my money in and i couldn't diversify

Into an index fund or something like that i would have to go with johnson and johnson i think it is a phenomenal company it has phenomenal numbers good growth figures and even despite its size it's still

Growing which is really impressive i think it is a company that is poised to do well in the future and that was just an interesting side note i thought the second company is philip morris

International ticker symbol pm and is trading at 76.3 cents per share it is valued at 118.39 billion dollars if you're not into investing in sin stocks don't worry about it because there are other

Stocks in this video that are not sin based stocks syn stocks meaning it's something that society has deemed to be kind of nefarious so one criticism philip morris international gets and i think it's fair

But it's actually not bait it's not as realistic as many people think is a lot of people think oh we're heading towards this healthy society people are going to completely quit smoking

And that's largely been true in the united states the u.s has halved the amount of people smoking from like 26 or from 1960 till now but an interesting thing to note is in 2014 20 percent of the world's

Population is still smoking so they still have a huge amount of consumer base to tap into that's about a billion people give or take and philip moore still has a very large amount of people they can sell

Products to they're diversifying in a really good way so that was just an interesting point i was shocked that that many people still smoked but it's true it's more of an american phenomena this

Cutback in smoking we've seen so altria which was the split off between altria and philip morse international the company split off there was rumors of a merger it didn't happen i do think the merger will eventually happen just

Because they're going to want to solidify their position as the dominant competitor in this industry but altria has raised its dividends 50 years in a row that makes it a dividend

King and altria was the split off of philip morris and philip morris has now raised its dividends 13 years in a row so far and it doesn't show any signs of slowing down philip morris also has a

Pays a 6.16 dividend which is a which is a really high yield and it's also sustainable that far outpaces the market so i really like it i actually read an article um

That said philip morris international altria or whatever would have been the best stock to buy 50 years ago so philip morris international has outperformed every stock in a 50-year

Period if you include dividends and reinvested dividends so that was an interesting side note philip morris has a fairly high 91 payout ratio meaning most of the company's cash is going to shareholders

But the company has a decent amount of cash on hand 6.861 billion in 2019 and it's been steadily raising its earnings per share number and investing new products so even despite the the decreased amount of people smoking

They've been increasing their earnings per share which is really impressive another thing is their revenue their revenue in 2016 is starting to go up because of

Their new icos product which 11.2 million people have already switched over to icos is a smoke-free product so it's much more healthier and that is really the future of the

Company is they're still going to be in the um consumable sin area but much less nefarious and i don't think governments are going to crack down quite as hard on this

As they did with smoking because i think the health data shows that this is a much more healthier activity than smoking was philip morris international's 173 year history

Their revenue starting from 2016 has been increasing despite a recent dip from 2014 to 2015 and 2015 to 2016. i think the company is poised to do well in the future i think they're diversifying in all the right ways and i

Think they are going to survive and have a bright and prosperous future the third company is american state's water corporation which a lot of people don't know this company actually has the

Most consecutive dividend increases of any public company in the united states it's trading at and 60 cents per share it has a dividend yield of 1.51 which is a little below the market and it's valued at 2.97 billion

So it's a utilities company which means it has consistent um revenue because it does government contracts and things like that utility companies are generally pretty boring but they're pretty stable at the same

Time and the company's raised its dividends for 65 years in a row now which is really really impressive when you consider that most companies don't even survive

65 years let alone be able to consistently raise your dividend 65 years in a row that's a very very impressive feat one thing to note is that their free cash flow has been sketchy the past

Couple years but it really hasn't proven a problem historically so i'm not that worried about it their their revenue growth has been all right again pretty flat line nothing spectacular so the next one is

Pepsi co inc ticker symbol pep it is trading at 134.24 cents per share it's valued at 185.87 billion one thing to note about pepsi is a fun fact i didn't actually know is they used

To own taco bell pizza hut a w kfc and east side mario's and that was really surprising to me i didn't know that they had known that that they had owned that in the past it was under the brand of yum brands but

That was a spin-off they eventually gave it up because i think they realized they're not as good as running restaurants and fast food chains as they are running their food and core consumer industry their

Core consumer products another thing that's shocking is just what they own i mean they own cheetos tostitos lays pepsi gatorade dole 7up lipton pretty much any consumer food product you eat

Pepsi at least owns a couple of them chances are they own a lot of stuff i quaker so they have a phenomenal diversification they also have 57 years of consecutive dividend increases very solid

Solid free cash flow it's pretty stable nothing nothing impressive in terms of free cash flow growth but it's pretty stable their revenue growth is pretty stable as well so nothing to worry about there in

My opinion the next company is pfizer ticker symbol pfe it is trading at 36.69 per share companies value 203 billion p ratio of 13. i think this company is criminally undervalued for what they bring to the

Table they've grown their dividend 10 consecutive years in a row and they've and they have consistent free cash flow a slight decline and the company's been around 170 years and with health care and pharmaceuticals

On the rise as the company as our country begins to age i said as the as the country begins to age as countries in general begin to age i think that's going to increase into the future and it also pays a solid 4

Dividend so i really think there's a lot to like about this company in my opinion the next one is mcdonald's this shocks a lot of people but mcdonald's is actually one of the best performing stocks during recessions

Mcdonald's is currently trading at 192.98 cents per share it's valued at 143 billion dollars so the company is ranked the 36 most valuable brand in the world according to this one article i read and forbes puts

It at about like 26 and there's various other ratings it's also performed extremely well during recessions oh wait for example the company saw an

Increase in revenue and an increase in earnings per share despite the 08 recession so you can see this is a very defensive stock this is a stock that does pretty good during recessions just to touch on that

The company's raised its dividends 43 years in a row again very very impressive it's had a phenomenal earnings per share growth again despite recessions that it survived it has 38

694 95 stores that's in 2019 worldwide the company has also been rapidly updating its technologies you'll see the touch screens in all the stores now and as well as shifting over to hell having healthier options

Which is generally a good thing and i think that's where the tide is trending the last one is disney i've covered disney kind of extensively on this channel but i'm going to cover it again and i pretty much took the same slides

As it did in my other video because it makes a great point so disney's trading at 118 dollars 118.62 cents per share ticker symbol dis it's worth 214 billion dollars one thing is i think people really

Underestimates disney's streaming potential so if disney got 200 million subscribers which i think is very within the realm of possibility in the long run that would bring in 16.7

Billion dollars a year in revenue uh the monthly cost is roughly 6.99 per month it depends if you pay um monthly or if you bought like a three-year plan but it ranges so if you take 699 times 12 that's 83.88

83.88 times 200 million you're looking at 16.776 billion dollars a year in increased revenue and this is assuming the average subscription is 6.99 per month it's probably more because you can get a

Bundle of disney plus hulu and espn plus for 12.99 a month so the average subscription cost is probably above 6.99 per month but you can also pay 69.99 per year for disney plus which reduces the monthly

Cost of 583 per month but still the average subscriber probably is more than 6.99 per month making these numbers probably a fair estimation estimation and we're already seeing an

Uptick in revenue which is likely driven from the disney plus espn and hulu that's likely where that revenue increase is coming from i don't think the parks is really what's driving that if you look at the actual amount of

People who go to the parks another thing to note is that disney will be adversely affected from the recent global events with the virus and everything because obviously you can't pack a bunch of people

In a theme park or there's going to be certain restrictions on that which restricts the flow but they're lucky because they've diversified into their streaming platform which is going to bring

Consistent and increasing revenue i think disney plus is going to do phenomenal going forward i think it's going to rival netflix i think it might even overtake netflix if they

Execute properly and i think they will they have a history of executing properly under bob iger he is going away but i think he's going to do the transitional process in a really good

Way i do think we're in a slightly sketchy period because there is a lot going on and we're not sure when the parks are going to be able to fully open how long they're going to be able to open

But i still think the company will survive this temporary downtrend period so my rating in terms of dividend paying stocks is johnson johnson gets a 9.3 out of 10 philip morris international gets a 7.4

Out of 10 american states water company gets an 8.1 out of 10. pfizer gets a 7.9 out of 10 mcdonald's gets an 8.9 out of 10 and disney gets a 9 out of 10. i think i forgot a stock i

Forgot um i forgot pepsi pepsi i would give a um just to show you how i'm doing the ratings i would give pepsi a solid 8.1 out of 10. i think that balances out the kind of

Stagnant revenue growth but also the diversification the company has the consistent the consistent dividend increases and that's what i tried to do here i think johnson

Johnson when you balance out the dividend increases the diversification that has to rank higher than someone like philip morris who has kind of decreasing revenue and then you have american states water company which

Has raised their dividend the most times but at the same time their revenue and free cash flow numbers aren't as good as johnson and johnson pfizer has good pretty good numbers

They're also in the healthcare industry which is expanding so you can see where i try to balance that out so that would be my rating for pepsi which i didn't include in the slide just to show you how i'm doing the

Rating if you like this video feel free to subscribe and the like and comment always appreciate it thank you and have a good day

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