What stock or ETF pays the highest dividend?
In a market that generates a 2% annual yield, you would need to invest $600,000 up front in order to reliably generate $12,000 per year (or $1,000 per month) in dividend payments.
- 3M Company (MMM) 3M manufactures a variety of products that are used by businesses and consumers alike. ...
- Verizon Communications (VZ) ...
- Dow Inc. ...
- Chevron (CVX) ...
- International Business Machines (IBM) ...
- Cisco Systems (CSCO) ...
- Coca-Cola (KO) ...
- Amgen (AMGN)
Mutual Fund | Expense Ratio | 30-day SEC Yield |
---|---|---|
JPMorgan Equity Premium Income Fund (ticker: JEPAX) | 0.85% | 7.4% |
Vanguard Wellesley Income Fund Investor Shares (VWINX) | 0.23% | 4.7% |
Fidelity Investment Grade Bond Fund (FBNDX) | 0.45% | 5.5% |
Fidelity Total Bond Fund (FTBFX) | 0.45% | 5.9% |
In a market that generates a 2% annual yield, you would need to invest $600,000 up front in order to reliably generate $12,000 per year (or $1,000 per month) in dividend payments.
Dividend ETFs can be a good option for investors looking for a low-cost, diversified and reliable source of income from their investments. Dividend stocks may be a better option for investors who prefer to choose their own investments.
Both stocks and ETFs provide investors with dividends, and each is traded during the day on stock exchanges. Individual stocks are much riskier but can yield higher returns. ETFs are relatively low risk and provide stable, if less profitable, returns.
Altria Group, Inc. (NYSE:MO), AT&T Inc. (NYSE:T), and Verizon Communications Inc. (NYSE:VZ) are some of the highest-paying dividend stocks in the S&P 500 among others that are discussed below.
Stock | Dividend yield* |
---|---|
3M Co. (MMM) | 6.5% |
Kinder Morgan Inc. (KMI) | 6.6% |
AT&T Inc. (T) | 6.7% |
Verizon Communications Inc. (VZ) | 6.7% |
Dividend kings are an elite group of stocks that have increased their dividends every year for at least 50 years in a row. Not surprisingly, a relatively small number of companies ever reach this benchmark.
VHYAX-Vanguard High Dividend Yield Index Fund Admiral Shares | Vanguard.
What Vanguard ETF pays the highest dividend?
Symbol Symbol | ETF Name ETF Name | 1 Year 1 Year |
---|---|---|
VIG | Vanguard Dividend Appreciation ETF | 25.12% |
VYM | Vanguard High Dividend Yield Index ETF | 19.25% |
VYMI | Vanguard International High Dividend Yield ETF | 19.02% |
VIGI | Vanguard International Dividend Appreciation ETF | 20.33% |
Symbol | Name | 5-Year Return |
---|---|---|
GBTC | Grayscale Bitcoin Trust | 68.99% |
USD | ProShares Ultra Semiconductors | 60.47% |
FNGU | MicroSectors FANG+™ Index 3X Leveraged ETN | 51.57% |
FNGO | MicroSectors FANG+ Index 2X Leveraged ETNs | 48.38% |
Stock | Forward dividend yield |
---|---|
Exxon Mobil Corp. (XOM) | 3.5% |
Johnson & Johnson (JNJ) | 3% |
Procter & Gamble Co. (PG) | 2.3% |
Home Depot Inc. (HD) | 2.4% |
A well-constructed dividend portfolio could potentially yield anywhere from 2% to 8% per year. This means, to earn $3,000 monthly from dividend stocks, the required initial investment could range from $450,000 to $1.8 million, depending on the yield. Furthermore, potential capital gains can add to your total returns.
To generate $5,000 per month in dividends, you would need a portfolio value of approximately $1 million invested in stocks with an average dividend yield of 5%. For example, Johnson & Johnson stock currently yields 2.7% annually. $1 million invested would generate about $27,000 per year or $2,250 per month.
Cons. No guarantee of future dividends. Stock price declines may offset yield. Dividends are taxed in the year they are distributed to shareholders.
9 In other words, dividends are not guaranteed and are subject to macroeconomic and company-specific risks. Another downside to dividend-paying stocks is that companies that pay dividends are not usually high-growth leaders.
Growth Investing
Unlike dividend investing, with growth stocks, money remains invested in the company and is not paid out in periodic intervals. Instead, all excess return generated gets reinvested back into the stock itself.
- ICICI Prudential Dividend Yield. ...
- Aditya Birla SL Dividend Yield Fund. ...
- HDFC Dividend Yield Fund. ...
- Templeton India Equity Income Fund. ...
- LIC MFDividend Yield Fund. ...
- Sundaram Dividend Yield Fund. ...
- IDBI Dividend Yield Fund. ...
- UTI Dividend Yield Fund.
For most personal investors, an optimal number of ETFs to hold would be 5 to 10 across asset classes, geographies, and other characteristics.
What is a good dividend yield?
What Is a Good Dividend Yield? Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment. Your own investment goals should also play a big role in deciding what a good dividend yield is for you.
KO pays a dividend of $0.48 per share. KO's annual dividend yield is 3.08%. When is Coca-Cola ex-dividend date? Coca-Cola's upcoming ex-dividend date is on Mar 14, 2024.
Symbol | Company Name | Div. Yield |
---|---|---|
LTC | LTC Properties, Inc. | 7.04% |
EFC | Ellington Financial Inc. | 15.39% |
ARR | ARMOUR Residential REIT, Inc. | 21.79% |
SBR | Sabine Royalty Trust | 9.51% |
Dividends can be classified either as ordinary or qualified. Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates.