re: what are the 10 best stocks to buy that pay a dividend

I dont invest in biotech HYDRebs, that is a timebomb waiting to happen did you see BMY today? Dear lord and thats one of cramers favorites haha, I honestly just dont know the space to understand whats what, and stuff is always coming off patent but god bless you if you want to invest in that space. Ill stick to soccer moms buying overpriced lattes forever lol

is this BMY a buy, it has a decent div i see? I just saw it down 20% today and I know cramer is always pimping it as his favorite. It got smoked thats for sure but I dont even know if I want the headache of this stuff haha.

I don't really look at growth rates. I look at yields, the sustainability of those payouts, and valuations of the stock. So if I'm looking for a dividend payer, I want at least a 3% annual yield. I'll also wonder what's up with the valuation if yield is above 5% in a stock that isn't a utility or some blue chips. I also want net income and operating cash flows to exceed annual payouts plus some margin for error. And I want to pay a fair or lower price for the stock - buying a value stock with a respectable dividend gives you multiple possibilities for a payoff.

That's for dividend stocks. If I'm looking for something else, my criteria changes, and I may even see dividends as a negative under certain criteria. But my criteria are based on what is acceptable and sensible to me. Others may very well have alternatives better suited for them.

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People that own JNJ, CVX, T, etc. own it for the dividend and the company is obligated to make sure they consistently pay that dividend because if they miss, that's going to scare their shareholders and potentially create a sell-off...the shareholders that own those stocks really want that dividend.

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Obligated to make the dividend payment? Kinder Morgan shareholders found out the hard way a little while ago there is no such thing as an obligation and Kinder Morgan was a dividend monster for years and year, even the chairman rich kinder who took no salary and had $10B of stock cut the dividend big time to save the company. Nobody is obligated to anything, dont ever think that, and I wish you well in your investing journey, but looking at the past is no way to judge the future. How many people are cutting cords today? Do you think ATT is going to still be selling cable subscriptions at a growing rate over the next decade? I sure as hell dont. CVX is paying $4.28 in dividends this year right? Well they earned a net of .24 cents, yes 24 whole cents over the last 2 quarters. What happens if that continues for a little longer than people think? We're approaching this november of 2 years of oil being cheap and oil,its down what 20% in the past few weeks?

All I know is starbucks to me is alot safer than ATT or CVX moving forward. The insatiable thirst of a consumer to drop $2-5 on a cup of coffee or tea is alot more guaranteed to me than ATT picking up new subscribers or retaining old ones. Oil is a commodity thats all over the place and Im plenty invested in oil in real life so I dont have any in my portfolio thats all Ill say about that. I personally was someone who used to spend $300/mo with ATT for uverse + internet and now I pay just for internet and then hulu,amazon prime,netflix for a total of like $30/mo now. Im mid 30s, im sure the number of people doing that will accelerate over the coming years. I just cant hold ATT just bc of a monster yield, there is serious disruption in the cable industry and if ESPN ever gets standalone or goes with Netflix/Hulu/Amazon it might be the kiss of death to the ATT cable package. Things like Starbucks appeal to me because I see ZERO disruption or risk on the horizon. There isn't even a threat of a global coffee chain out there as we speak, the ventures into Tea,Juice,etc are all gravy right now. Everyone says its just coffee, but its more than that its an experience the way apple doesnt just make phones. You're never gonna take a date to mcdonalds or dunkin donuts for coffee, kids are never gonna study at Mcdonalds. Those are all silly arguments. SBUX is cementing itself as that mcdonalds or coca cola investment of say 1985 all over again

im not saying just sbux im saying you're acting like ATT is a surefire safe stock bc it has been forever. Im just saying the past 30 years have no influence on the coming decade and ATT has a monster, monster problem of millenials cutting the cord. Im saying ATT is way riskier than you're making it out to be. You're acting like investing in CVX,T, etc is like buying T bills bc of their past. Im just letting you know that both are under major fire moving forward for reasons like low oil prices and cable trends changing. Invest wisely not bc of a dividend that may or may not be the same in the future as it is today. Investing is about the future, not the past. You havent said a thing to me in reply to CVX earnings this yr and the correlation to their current dividend. Do you think its sustainable if the earnings stay at this level for another 18 months?

PS KMI was nearly $100B company a year ago, its been decimated, but dont try to make it sound like KMI was a small cap they were gigantic.

You're still not answering the 1 thing I asked you to answer about the dividends safety if CVX earnings keep coming in at the rate they have the last 2 quarters.Chevron has a historical P/E ratio of around 10. It is now almost 140, how is CVX a safe buy at this point in time? I know everyone on this site is a permabull on oil, but im asking a legit question because oil doesnt seem like its going up anytime soon as we approach 2 years of an oil beating and these big oil names are currently paying out more than they earn and have been doing so for a little while now, that is not sustainable at all. Of course as you said, they're doing all they can to avoid a dividend cut, but if I was a shareholder of BP or Shell or CVX I would definitely be worried. Exxon can weather the storm a little longer than the others, but even they would have to give in if it stays here a bit longer.

I dont follow C but I personally dont think rates are going anywhere anytime soon so Im not a believer in banks. C just went through a wild period of paying like 1 penny per quarter for years. If C can keep boosting its dividend significantly over a multi year period like nike or starbucks or visa then sure Im on board. Its up 16 fold in the last year, that is probably the most significant one Ive seen, thanks for bringing it to my attention. Ill def look into it. I just really dont like biotechs or banks because I dont understand biotech and banks, who the hell understands their derivative books? Remember the london whale? I worked in private banking early in my career at Chase years back and the derivative market is a multi quadrillion, yes quadrillion dollar tangled web of mess thats a time bomb the size of the housing crisis many times over. I try to stick to investing in things that are simple to understand. I dont like complex things that require tons of homework and constant checking from me. Frankly I dont trust greedy bankers to not make the same mistakes they made years back, we're already seeing low money down loans emerging again while home prices are at all time highs....thats no bueno to me.

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Sounds like your opinion is based on speculation of growth rather than the topic of this thread - which is dividend paying stocks.

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His argument is that companies that have big dividend payouts have huge issues going forward if they miss profit. Either they do something stupid to maintain dividend or cut it


A company like Starbucks for example has a low payout ratio but consistent. That means that the risk of it being cut is very low and their future dividend growth will make it more valuable

ive been good man, howve you been? Glad to hear the portfolios rockin but I cant take credit haha the whole market is soaring to new all time highs. I just try to help people understand what a good dividend stock is and what a bad dividend stock is thats all.