Dear Investing Family,
Today, I am “spilling the tea” on some of my favorite dividend stocks…nine dividend stocks.
I love earning dividends. It is one of my two favorite ways to earn passive income. Creating passive income with dividends may be the best form of passive income there is. It is the definitely the easiest to begin.
I have a lot of different stocks, but I buy different stocks for different reasons.
In fact, every stock in my portfolio has a job. The stocks that I am focusing on in this letter are those that I focus on strictly for their dividends. Therefore, I try to get dividend payers with long histories of not only paying, but also increasing their dividends.
Without further delay, let’s dive into looking at…
Nine Dividend Stocks (Nine of My favorite)
The first two of my favorite dividend stocks are beverage companies.
Pepsico – Ticker symbol: PEP
Pepsico is in the consumer staples sector.
I like that people like Pepsico’s snack food and people don’t like to give up their favorite snacks.
Some of their products include: the Pepsi products, Mountain Dew, Gatorade, Starbucks Frappaccinos, Bubly beverages, Ruffles chips, Lays chips, Rold Gold Pretzels, Sabra Hummus, and more.
Their current dividend yield is 2.82%.
They have a 5 year average annual growth rate of 7.39%.
Coca Cola – Ticker symbol: KO
Coca Cola is in the consumer staples sector.
More specifically, they are a non-alcoholic beverage company.
Here again, is a company that produces something that people don’t like to give up
Specifically, some of their products include: Coca-Cola beverages, Fanta, Sprite, Minute Maid, Powerade, Schweppes, Desani, Vitaminwater, Smartwater, and more.
Coca Cola is a dividend king and has 60 years of dividend increases.
Their current dividend yield is 3.14%
They have a 5 year average annual growth rate of 3.53%.
Johnson & Johnson – Ticker symbol: JNJ
Johnson & Johnson is in the health care sector.
I like the healthcare sector because everyone needs healthcare.
Some of their products include: Aveeno products, Tylenol, Motrin, Benadryl, Nicorette, Listerine, Band-Aid, and more.
Their current dividend yield is 2.77%.
They have a 5 year average annual growth rate of 6.11%
Procter and Gamble – Ticker symbol: PG
Another consumer staple company is Proctor and Gamble.
They produce many of the products that people use every day. Some of those products include Luvs and Pampers diapers, laundry products such as Cheer, Gain, Bounce, and Downie, Bounty, Charmin, and Puffs, Venus and Gillette razors, and lots more.
Impressively, they are a dividend king and have 66 years of dividend increases.
Their current dividend yield is 2.6%.
They have a 5 year average annual growth rate of 6%.
Abbvie – Ticker symbol – ABBV
Abbvie is in the healthcare sector.
As I said before, I like the healthcare sector because everyone needs healthcare.
They produce prescription drugs Humira, Rinvoq, Skyrizi, and Botox, to name a few.
Abbvie is a dividend king that has been paying dividends for 50.
Well, that 50 years comes with an asterisk. That’s because Abbvie is actually a company that is a spin-off from another dividend king pharmaceutical called Abbott Laboratories.
Having the highest dividend of these nine stocks, the current Abbvie annual dividend yield is 4.08%.
They have a 5 year average annual growth rate of 16.48.
Consolidated Edison – Ticker symbol: ED
Consolidated Edison is in the utilities sector.
I like utilities because I am a long term investor, and since everybody needs utilities, the dividends tend to be dependable.
Consolidated Edison provides electric, gas, and steam to New York City.
Consolidated Edison is a dividend aristocrat and has 48 years of dividend increases.
The current annual dividend yield is 3.57%
They have a 5 year average annual growth rate of 2.95%.
On to the last 3 of my nine dividend stocks
Bank of America – Ticker symbol: BAC
Bank of America is in the financials sector.
You may see Bank of America abbreviated as BofA.
I like BAC because it is the second largest bank in America, and the second largest bank in the world.
BAC divisions include: Bank of America retail bank, BofA Securities, Merrill, and Bank of America Private Bank.
The current annual dividend yield is 2.84%
They have a 5 year average annual growth rate of 17.14%
3M: Ticker symbol – Ticker symbol: MMM
3M is in the industrials sector.
I like 3M because they produce so many of the products that people use each day, both at home and at work.
Some of the items that they produce include: adhesives, sealers, automotive parts & hardware, building materials, cleaning supplies, dental & orthodontics items, lubricants, tapes, and tools, to name some.
Perhaps one of their most recognizable products are Post-It Notes (which I use a lot.)
3M is a dividend king that has been increasing their dividends for 64 years.
The current 3M annual dividend yield is 5.26%
They have a 5 year average annual growth rate of 4.86%
The Last of my Nine Dividend Stocks is… Pioneer Natural Resources: Ticker symbol: PXD
Pioneer Natural Resources is in the energy sector.
I like Pioneer because they reportedly have a lot of free cash flow. Furthermore, they have announced a high dividend policy, in which they are returning up to 80% of free cash flow back to investors.
Pioneer Natural Gas produces oil, natural gas, and natural-gas condensates (also called natural gas liquids.)
Uniquely in this group, Pioneer pays a base-plus-variable dividend.
The PXD current based-plus-variable dividend is 10.79%.
In September 2022, the base-plus-variable dividend was $8.57 per share.
So, there you have it…nine dividend stocks.
Here’s a Recap:
- Pepsico
- Coca Cola
- Johnson & Johnson
- Procter and Gamble
- Abbvie
- Consolidated Edison
- Bank of America
- 3M
- Pioneer Natural Resources
What are your favorite dividend stocks? Let me know in the comments.
One of my favorite ways to invest is through the stock market.
If you are interested in starting to invest in the stock market, feel free to use my Robinhood link. I love the Robinhood app, and I use it every day.
Robinhood is giving away free stock when you sign up for an account.
If you use my Robinhood link, I may receive a small payment. But, it will not cost you any additional money.
I appreciate the payment that I may get, because it helps to cover the cost associated with producing this blog. Thank You!
Do you want to read more of a mom’s letters written to inspire financial independence by age 30? Check out:
Uh-Oh! Did You Forget Everything That You Learned In Your Financial Literacy Class?
Spilling the Tea on How To Start a Robinhood Investment Account
If you found this information helpful or inspiring in any way, please share this post with someone else, and follow my blog. This helps me know that I am sharing something that you value, and inspires me to write more.
Keep working to make things better for yourself. Remember, no one is coming to save you. You need to do what is necessary to take care of your future and the future of your loved ones.
Hugs,
Rich Mom
Wondering About Rich Mom?
If you stumbled upon this post and you are wondering who I am: I am a tea lover and a mother to a young adult. My majors and degrees are in business, economics, and education, and I am passionate about financial literacy and personal finance. I am worried about the future of young adults who are often being burdened by massive student loan debt, but at the same time have never been taught about financial literacy.
So many people work, forever living just paycheck to paycheck, never understanding the pattern that would make their lives easier. My goal with my blog is to inspire those ages 30 and under to become more financially literate, become financially independent, and be able to live a healthy (mentally and physically), happy, generous life, in which you can help others do the same. But remember, my blog is intended to inspire, but not as investment advice.
I am not an investment advisor. Always do your own due diligence and research before investing. Check with your own investment advisor.
Also remember that past performance is not a guarantee of future performance.
In terms of full disclosure, I am long on all 9 of these stocks.
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