Naturally, investors want to know how to find the top 10 highest dividend stocks in the U.S. and even worldwide. Dividend stocks are especially attractive at the moment as global dividends reached a record high of $447.5 billion during the second quarter of 2017, which is a 5.4 percent year-on-year increase. Furthermore, the underlying growth of dividend payers was at 7.2 percent, which is the most rapid from late 2015. Most corporations all over the world have experienced growth in their dividends but the largest increases were found in the U.S, Switzerland, Japan, Belgium, Netherlands, South Korea, and Indonesia.
Understanding Dividend Stocks:
Investing in dividend stocks gives you a lot of financial power because they provide such consistent and high yields. On average, they return about 10%, much more than the 6% seen in 1970s stocks. While this may not sound like a lot of money, it practically means that a $50,000 investment would turn into a million after 25 years, and that is at 6%. If clever investments are made, you could see returns of as much as 20%, which translates into some serious cash for your retirement.
Of course, there are no guarantees with investments, not even if you pick the top 10 highest dividend stocks. However, the top stocks do have the most consistent returns, which means they give you a great opportunity to make money over the long term. Experts agree that the best way to achieve this is to purchase large amounts of dividend stocks, and then reinvest the dividends. Over the past 140 years, this has yielded a 50% equity return, which is more than any other form of financial investment.
What Are the Top 10 Highest Dividend Stocks?
If you were to ask three different financial experts this question, you are likely to get three different answers. This is because there are so many different criteria that determine whether or not a dividend is “high” or not. One of those criteria is whether or not the price to earnings ratio is a good one. The market average has consistently stood at around 15, although today’s price to earnings ratio is 17. Another important factor is to look at whether there has been steady, long term growth and that each year has shown clear earnings. Finally, you need to look into the company itself, determining whether they have consistently raised their dividends year on year.
If you are looking for the top 10 highest dividend stocks, the best thing to do is to speak to financial experts. Ask them to make recommendations and ask what are those based on. Remember as well that you must work towards having a diverse portfolio, so that you are protected from market fluctuations. If you do not have the opportunity to consult a financial expert, then you can do your own research, looking at the different markets. Nasdaq, for instance, lists up to date reports on the highest dividend stocks and you can always choose to simply pick their top 10.
As of 10 October 2017, the 10 highest dividend stocks were:
1. CenturyLink
2. Seagate Technology
3. Macy’s
4. Iron Mountain
5. L Brands
6. Kimco Realty
7. HCP
8. Helmerich & Payne
9. ONEOK
10. Ford
