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

HCP, CVX, XOM, PG, NUE, JNJ, TROW

J&J
MRK

its all about dividend growth, id rather starbucks even with a 1.4% dividend BUT at monster 25%/year dividend growth over the last 4 years vs any of those dividend stalwarts you posted. Whats the growth on wells fargo dividend over the last 4 years? The growth of the dividend is what will make you rich, that combined with the payout ratio. I know Exxon has paid its dividend for however many years consecutively but the past has no bearing on the future. Lots of oil names cut dividends this year, exxon will obviously be the last but starbucks,visa,nike those dont pay huge dividends but look at the growth of the dividend. Starbucks especially they're paying out 40% of the dividend vs mcdonalds at 80%, then think about how fast starbucks is growing vs mcdonalds and just imagine where that starbucks dividend will be in a decade.

If I had to buy one dividend stock today to drip, its starbucks without question. PS fwiw Starbucks is in a good spot now sub 30x forward earnings, probably 20% dividend boost in november and just growth for years ahead. Can any of those names you mentioned really talk about massive growth over the coming decade? Hell bookmark it, thats my call, starbucks will see a minimum 4-5x fold dividend increase on purchases made today within a decade, minimum. There is just soooooo much room at the 40% payout to grow it once theyre done adding stores rapidly

I dont know why everyone is gung ho about a dividend, all dividends are not equal thats for sure. You could buy a stock like google that doesnt even pay a dividend for $805 and sell the $880 call a year from now next june at $38 thus getting you a nearly 4% dividend on google.

AT&T
Philip Morris International
Verizon

to name a few

I like JNJ, T, VZ, KO, CVX, PG, XOM, CAT, ETR, MCD

Those are fine companies you posted but i mean seriously have you looked at the dividend growth rates on those? The point being is while those companies are solid and safe, they're barely growing their EPS and with payout ratios at near maximums I dont really see that much dividend growth in the future percentage wise.

Go to dividata and input whatever names you want and look at their history

Like Coca Cola its currently paying $1.40 on $1.66 of EPS thats about 85% payout ratio so any slip up in earnings and that dividend isnt at risk, but its at risk of growing.

XOM,Exxon, is paying $3/share in dividend and EPS isnt there anymore.They earned 84 cents thus far in the last 2 quarters. That is teetering on the edge of a dividend cut if one ever was. They obviously have cash reserves and can pay it, but that payout ratio leaves no wiggle room to keep boosting the dividend significantly at all.

Which is why I mentioned Starbucks. $2.17 of EPS is the forward number and .80 dividend currently. There is so much room for error in there + their earnings are rising significantly annually and I dont really see whats gonna stop it. Mcdonalds or Dunkin Donuts coffee? Lol no.

Even Nike, $2.16 of EPS and a 64 cent dividend today, so plenty of room up to that 80%+ payout ratio of the mature companies like Exxon,Coke,Mcdonalds,Etc. I just think people look for the dividend yield too much and dont pay attention to the metrics that matter which are growth of the company + growth of the dividend + payout ratio. Those are the ones that allow you to buy those dividend growth stocks you hear about from years past. Starbucks and Nike have to be #1 and #1a in that regard moving forward. Obviously Amazon,Google will pay dividends at some point too but in terms of current dividend payers that will be the dividend stars in 20+ years its gotta be starbucks and nike, they will surpass all those names you posted in terms of share appreciation and dividend growth over the next decade but yes if you need cash today, the dividends dont pay out that much.

did you miss the whole part of me mentioning dividend growth? That is the growth of the dividend. What did Coca Cola,Exxon,and Mcdonalds Grow their dividends by over the last 6 years, let me post it for you

2010/2016 dividend

SBUX - .10/.40 but bc it split its .20 today

XOM - .44/.75

KO - .22/.35

MCD - .61/.89

So all those companies grew their dividends well over that time frame but starbucks dividend went up 4 fold. Thats because they're still growing the company by leaps and bounds and the payout ratio is so low vs all those others paying out almost all their earnings in dividends. Do you understand how dividends are paid? They are a portion of earnings, mature companies like Coke or Mcdonalds payout 80%+ of their earnings. Starbucks is just as solid as any of those companies and is still growing by leaps and bounds but they're only paying less than 50% of their earnings in dividends, so that dividend can still grow massively. Are any of the companies posted in this thread besides starbucks or nike looking at 20%+ growth of the dividend this year? Surely not.

Dividend growth is what you want unless you are living off dividends today, if you are then fine go with the ones posted here, but if you have a 20 year horizon. Starbucks and Nike are growing now way faster than those safe names listed and they have way more cushion to not slash dividends if times got rough thats all im saying. BP,Shell,Exxon could all face dividend cuts if oil hovers down here another 24 months. Yes its great Coca Cola gives you a 5-7% boost every year with earnings, but SBUX is giving you 25% for the past 4 years on average. Are you getting 25% annual increases at work? Thats remarkable from such a solid company with plenty of growth and safety built in.

You realize once starbucks stops adding stores left and right like Mcdonalds in say 10 years, they can boost the payout ratio to 85% like Mcdonalds then right? What happens then? Say they earn $5/share in 2026 which isn't unreasonable and probably too conservative considering theyll earn over $2 next year. They could easily payout $4/share in dividends thats 5x from today. Will Exxon or Coke boost their dividend by 100% much less 5 fold within a decade? There is 0 chance of that.

If you're trying to tell me starbucks or nike is any less safe than the ones you listed bc they haven't paid dividends for 30+ years your nuts. Im not here to try to sell you on SBUX your mind is set, but if you would look at which company is growing its dividend by a higher percentage you have nothing to argue with me. SBUX has more dividend coverage than any name you mentioned, and its growing way faster than any name you mentioned, that sounds like a combination you want to reinvest dividends of. Its my largest position today and thats my thesis on why.

quote:

---

It is honestly baffling that anyone can try to argue with these recommendations, and to whoever down voted - you should probably stop posting on the topic because you obviously have no idea what you're talking about

---

I've been watching the thread, and the downvoter came in after dabigfella's first post. No one posted soon after, though. I think they prefer to be anonymous or have nothing to say.

quote:

---

Tiger4life306

---

Honestly I think your disagreement with dabigfella further proves my point: what is best for one person isn't necessarily best for all. One person prefers consistency, another prefers growth, another yield or value. Each choice can be right for different people, and it's hard to say what stocks are best (particularly for the OP) with thousands of stocks to choose from and who knows how many funds.

Actually, neither you nor I were downvoted in that first wave. In fact, you had an upvote. I figured it was just a troll trying to stir things up.