hey y'all in today's video I'm going to
share with you seven dividend stocks
that pay me over 500 per month I've been
really getting into dividends this year
especially with the way that the market
has been trending we're seeing a
rotation out of tech stocks and into
more value stocks and stable companies
many of these stable companies will pay
a dividend and I really value the
passive income generated from owning
these dividend-paying stocks and if
you're looking to increase your own
passive income streams then dividend
stocks could be a good way to do that
okay before we get into the list let's
actually briefly explain why companies
pay dividends what you can expect from
dividends as well as some of the
pitfalls to look out for when it comes
to this this part is important so don't
skip it trust me you're going to want to
know this stuff and then after this
we'll get into the entire stock list so
why do companies pay dividends when
companies make a profit they need to do
something with that profit they usually
have a few different options number one
they could reinvest their money so for
example if you're a growing startup and
you earn some profit then you could
actually just reinvest that into your
business to create better products and
hopefully get more market share the
other thing that companies can do when
they make a profit is to pay some of
that profit back to their shareholders
in the form of a cash dividend payment
so just by owning a dividend-paying
stock you usually get paid a cash
payment dividend every quarter that's
the usual schedule and if you compound
these dividends over time the effects
can be pretty amazing now there are some
other things that companies can do with
their profits like share BuyBacks or
perhaps reducing the debt on their
balance sheet but for the most part what
we're focused on is the dividend now
back in the day I used to just look for
a company with the highest dividend
yields like over 10 percent and just
invest in that but you're going to want
to be a little bit careful of that
because that's what's known as a
dividend trap I think anything over a
five or six percent dividend yield
should be looked at a little bit closer
because that kind of tells you that
they're not reinvesting their money into
the business perhaps they're paying too
much out in dividends to their
shareholders or the company's stock
price has fallen so much that the
dividend now looks like a larger
percentage of their entire stock price
I'm not saying all high yielders are bad
stocks that's not what I'm saying at all
but anytime you see a dividend yield
over five or six percent you should do
some more more research all right so the
first stock in my portfolio that's a big
dividend paying company is JPMorgan
Chase this is one of the biggest
Financial companies out there and
they're paying right now a 3.4 to 3.5
percent dividend yield on their stock so
that means for every share of JP Morgan
that you own you're going to get paid
about four dollars annually for owning
that share yeah so 3.5 isn't really that
high of a yield per se but it is higher
than the Benchmark of the S P 500 which
is around 1.7 percent dividend yields
are overall just a lot lower than when I
started investing and that's due to the
share price going up because if the
share price keeps going up and the
dividend stays constant then as we know
the dividend yield will drop the reason
I like JP Morgan so much is that they
have a large amount of cash on their
balance sheet they basically have 1.7
trillion dollars in liquid assets which
over 700 billion of it is cash so that
means if you're a shareholder you're
going to feel pretty secure knowing that
JP Morgan isn't going to go bankrupt I
think JPMorgan is well positioned in the
financial sector especially with a
rising interest rate environment so as
you may or may not know the FED is about
to raise interest rates again this week
so as interest rates go up banks are
going to profit off of that because they
can basically Arbitrage the interest
rate and what they give to customers
this means that we should see net
interest income for JP Morgan continue
to go up especially throughout this year
and next year as the FED continues to
battle inflation they're probably going
to keep raising rates so if that happens
it'll just stand to benefit JP Morgan I
really value security when it comes to a
dividend-paying portfolio because if the
company's out of business then they're
not going to be paying you a dividend so
in the case of JP Morgan they did not go
bankrupt in 2008 like some other
financial institutions out there like
Lehman Brothers for example and you know
with so much cash on their balance sheet
that they're just not going to go
anywhere so for that reason I really
like having JP Morgan in my portfolio
Okay the next stock in my portfolio is
known as avvy and that's actually a
biopharmaceutical company that owns a
portfolio of drugs in different sectors
like oncology immunology and also
Neuroscience right now the stock
currently pays a 3.95 percent dividend
yield which amounts to about 5.64 cents
per share that you own every single year
that you own it you might not have heard
of Abby before but I guarantee that
you've probably seen a commercial for
their most notable drug which is
actually called Humira it's a drug that
reduces pain and swelling caused by
arthritis and so different types of
arthritis like rheumatoid arthritis even
Crohn's disease and other skin disorders
can be treated by Humira it also happens
to be one of the most successful drugs
ever it regularly tops the best-selling
drugs list every single year I know
that's crazy that that's even a list but
in 2019 the sales of Humira alone were
over 19 billion dollars for that single
drug now I know that this might be a
little controversial like you're
investing in Avi which is a
pharmaceutical company and the American
Health Care system is extremely broken
we all know that but Avi is well
positioned in their sector because they
have leading patents on a bunch of
different drugs as well as they continue
to invest in their research and
development programs which means that
they're going to be diversifying their
product mix as we move forward I I think
that this is going to give them a strong
economic moat and right now their
operating cash flow is huge it's 22.9
billion dollars every single year in the
most recent year as well as having Avi
in my portfolio is giving me some more
diversity to My overall stock Holdings
and also it's the only Healthcare Pharma
stock that I own so I'm pretty much okay
with it I don't really see them going
anywhere Now One Challenge they will
face is that they are losing exclusivity
with the Humira drug in 2023 which is
next year so that means there is going
to be more competition for that
particular space in the drug field
however I don't know if this is such a
big deal because they are investing so
much in r d but it's something to keep
track of and at 5.64 cents per share
that means it's going to scale pretty
well if you own 100 shares of ABV you're
going to get 564 dollars in dividends
every single year which is pretty
compelling now before we get into stock
three I wanted to tell you guys that
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go get those all right the third stock
on my list it's something that we're
probably all really familiar with it's
PepsiCo so PepsiCo sells different soft
drinks and beverages but they also own
Gatorade and Frito-Lay which is a
consumer package company that sells
different types of potato chips their
dividend right now is four dollars and
sixty cents for every share that you own
which means that you're going to be
getting about a dollar and fifteen cents
every quarter for every share that you
own and that results in a 2.73 dividend
yield which is pretty in line with JP
Morgan now you're probably wondering why
do you own Pepsi over Coke and that's
definitely a valid question because Coke
is a pretty comparable company with also
a very great dividend but in my opinion
I think I like Pepsi a little bit more
because of its diversification of its
product mix and if you really think
about it like Coke sells beverages which
is great but Pepsi does sell those
consumer package Goods like the chips
and it actually accounts for about 20 of
their revenue the last time I read their
financial report which is a really good
thing because if you're looking for more
growth then there's probably going to be
more growth opportunities for a company
that has a more diverse product mix
Pepsi is also one of those stocks where
it benefits them to have some pricing
power and basically they have pricing
power because consumers will always
demand their goods almost no matter what
as long as they're not raising the
prices too crazily but with the current
inflationary environment that we're in
if they can pass off some of those
inflationary costs to their customers
and their customers don't mind then I
think that's a pretty big win for Pepsi
another great thing about Pepsi is that
they're going to be here for probably
your entire lifetime and my entire
lifetime as well you know that Pepsi and
Coke have been Mainstays for quite a
long time and because they're so big and
so large and the demand for their
products is so good I don't think
they're going anywhere okay so stock
number four is craft Heinz Co you've
probably heard of Kraft Heinz before
they make all your favorite condiments
and and consumer food Staples such as
ketchup mustard mayonnaise and A1 steak
sauce not only do they make those
products they sell a ton of it with net
sales of 26 billion dollars just last
year they have a pretty strong dividend
with a 4.62 percent dividend yield which
comes out to around 1.60 per share that
you own this Stock's basically been
training flat the entire year which I
think is fine compared to the S P 500
which is down about 17 percent and it's
also a stock that Warren Buffett still
continues to hold in his portfolio today
I think it's always great to own a
company that relies on the consumer food
staple product as their main product
offering because food is not going
anywhere and even in tough Economic
Times people still have to eat so no
matter what their products are going to
be probably in demand now I will say out
of all the stocks in my portfolio I'm
going to keep a closer eye on Craft
Heinz Co and the reason is is that in
the past couple of years their profits
have been trending a little bit
downwards not by a ton by any means but
just by a couple percentage points it's
still something to keep in mind and the
the reason I think that's happening is
that oh there's a there's been this like
big shift away from like packaged and
like processed goods and people are
trying to eat healthier and so for a
company like craft Heinz Co that offers
a shelf life product this could be a
threat and that's just something I'm
going to keep in mind I'm not really
worried about the dividend of Kraft
Heinz Co however if things don't turn
around financially especially in the
next couple quarters or maybe the next
year I might let go of craft heinzko in
favor for a different allocation in my
portfolio all right pick number five is
another controversial pick but it's
actually Exxon Mobil it's controversial
because it's not necessarily a green
option and oil is not something
hopefully that we're still relying on in
the next 30 or 50 years but for now
fossil fuel dependency is still pretty
big and if you were to invest in Exxon
this year energy is actually one of
those sectors that has been
outperforming this year so it would have
probably benefited your portfolio quite
well if you did have this whole thing
refined oil products like petroleum
gasoline and heating oil products are
currently going for a premium on the
market and with the Ukraine Russia War
still going on and ends nowhere in sight
I don't anticipate Energy prices coming
down anytime soon Exxon right now is
raking in the profits and they pay their
shareholders a 3.78 dividend yield which
amounts to 3.52 cents per share per year
that you own them the other great thing
about Exxon this year specifically is
that they're up 50 year to date versus a
stock like Google which is actually down
30 so as you can tell energy is doing
really well this year and Tech is
getting crushed Exxon also makes for a
really great inflation hedge because if
you look at any CPI reading the biggest
sector that always goes up in price is
energy so Exxon stands to benefit from
that and if you really think about the
entire supply chain as a whole oil is
used in almost everything from
delivering your food on trucks or maybe
even harvesting your crops with the
machines that they use I'm personally a
fan of their dividend and I think
holding Exxon as a diversification
measure in your portfolio is a good one
now there are some risks to Exxon as
well which is that governments are more
shifting towards green energy so depend
on how long that takes we could see a
threat to Exxon but still I don't know
if the dependence on fossil fuels is
just going to go away just like that all
right the next stock on our list if you
can already guess based on the
soundtrack that's playing is Home Depot
Home Depot is seriously one of my
favorite stocks it's also a really great
place to visit in case you need some
Home Improvement done and right now
they're paying a 7.60 dividend per share
that you own which equates to about 2.7
percent of a yield Home Depot is one of
those companies that should remain a
beacon of security and stability and
both Home Depot and its competitor
Lowe's have been outperforming the S P
500 and NASDAQ over the last decade Home
Depot is the largest Home Improvement
retailer in North America with over 2
300 stores and 150 billion dollars in
revenues in the past 12 months in terms
of the revenue breakdown nearly half of
the revenue comes from professional
contractors and the other half comes
from DIY customers I think that Revenue
breakdown is pretty healthy because
let's say one segment stops buying at
least you have the other segment to kind
of rely on to help make up for that Home
Depot is also wildly profitable they
have 33 gross margins and 17 ebitda
margins which means that their dividend
is not going anywhere anytime soon
another reason I Like Home Depot is that
right now in the United States there
aren't enough homes being built so as we
catch up to that demand of homes wanting
to be built we're going to have to see a
lot more Home Improvement spending go up
so who benefits from that Home Depot
there are really only two retailers in
the space for Home Improvement where
else are you going to go it's either
Home Depot or you go to Lowe's and
because of that I think they have a
monopoly on that Home Improvement sector
which is pretty cool because if you have
a monopoly on the entire sector you're
probably going to be doing just fine as
company it's kind of like owning Google
stock you know how Google stock
basically owns all of the search results
well that creates a really strong
economic moat and the same could be said
for Home Depot all right there is a
bonus stock that I actually want to
throw in this video and that's actually
going to be the ETF voo and vo not many
people think of this but they actually
pay a dividend if you you don't know
what vo is it's an ETF that buys a small
percentage of every company in the S P
500 so it's known as the S P 500 ETF and
actually pays a dividend yield of 1.57
percent or about 5.65 cents for every
share that you own I mainly want to add
it in here because over the past 10
years I've been investing in vo and in
the beginning the dividends weren't
worth mentioning but these days it's
becoming more significant so I wanted to
call it out this is one of the bonuses
of owning an ETF in your portfolio some
of them actually do pay dividends I
think some people forget that when it
comes to the dividends I always reinvest
it and just try to compound my position
even further okay our last and final
stock for today is Johnson Johnson and
this is a stock that Warren Buffett
still holds today and that's for good
reason they pay a dividend yield of 2.7
percent so in line with JPMorgan Chase
and that comes out to about 4.52 cents
per share annually I think it's another
one of those stable companies that's
going to do well because of what it
offers so if you didn't know Johnson and
Johnson's most popular brands include
Tylenol Listerine Band-Aid pepsid Vino
and Zyrtec the company is pretty much
immune to any economic downturns it's
not like because we're in a depression
or maybe if inflation is high or
interest rates are high doctors are
still going to be prescribing Johnson
Johnson products to their patients the
other thing I like about Johnson Johnson
is that they are a dividend Aristocrat
so that means they've been paying
dividends to their shareholders for the
past 50 or more years and they continue
to increase it as well J J is a value
stock that is going to do well in any
type of environment they're up about one
percent this year so that means they're
outperforming the S P 500 they also have
a bunch of cash on their balance sheet
which I always like seeing and not much
short-term debt which is a good sign
even in the worst of recessions I think
J Will Survive so that's why I really
like them and I think that a large
takeaway from all my Holdings today is
that they're mostly safe and they're
mostly dividends that you can count on
all the time so I hope you enjoyed this
video make sure to grab your toll-free
stocks from Weeble with the link in
description below I don't know how long
that promotion is going to last so get
it while you can if you are interested
in other dividend videos I'll put them
up right here on the screen and I'll see
you guys in the next video which will
hopefully be next week alright peace