The CFDadvanced broker Lists The Top Strongest Dividend Stocks For August 2021
London, UK, 4 Sep 2021, ZEXPRWIRE – Because dividend stocks produce a stream of passive income, they are popular among investors who want to build wealth. There is no doubt that there are some great companies out there for this purpose; however, not all dividends come from equally strong businesses or sources and these three aspects should be considered when looking at any company’s stock with the intention of investing in it. Dividend investing is not a way to get rich quickly, but it can be extremely helpful in building wealth over time, as long as the companies behind the dividend stocks are well-positioned for future growth.
The best way to find dividend stocks is by looking for outliers in the market. These are often institutional investors, and so the broker from CFDadvanced looks at companies with a large amount of trading activity including MasterCard (MA), Sears Holdings Corporation (SHW), Williams-Sonoma Incorporated (WSM), & eBay Inc. (eBAY).
The broker says he has learned that the true tell on great stocks is that big money consistently finds its way into them. Some of the biggest returns ever have come from holding stocks and reinvesting dividends for many years, so the broker wants to own dividend-paying companies with a solid track record like these ones.
- MasterCard Inc. (MA)
MA has been raising its dividend for years and is a strong candidate for long-term dividend growth because it leads in price, has the most positive 1-month performance out of all stocks, and historically got big money buy signals from hedge funds.
Determining the best dividend stock involves looking under many hoods. One of these is MasterCard’s financial performance. We can see that it has a 3-year EPS growth rate of 25% and three-year dividends per share (DPS) growth rate of 45%. The forward yield, which allows us to value this aggressive dividend, is .45%.
MasterCard currently pays out 44 cents in dividends – an impressive figure!
- Sherwin-Williams Co. (SHW):
Now let’s look at the recent performance:
1-month performance (+4.95%)
The company has been a dividend grower for years – over ten consecutive years, in fact! When deciding on a strong candidate for long-term growth, it’s good to see many decades of increasing dividends as an indicator that management is committed to rewarding shareholders through increased payouts and can be trusted not to cut their distributions if times get tough…
Sherwin-Williams has a history of high dividends and strong earnings. They have grown their dividend an average of 16% over the last three years, which is more than double the S&P’s historical rate of 7%. Their current payout ratio is low at 35%, meaning that they should be able to continue growing their dividend in future years. The company also boasts 11.87% annualized 3-year growth in EPS before being adjusted for amortization charges as well; this bodes very well for future stock price gains as business momentum builds on top of already solid fundamentals like these ones mentioned above.”
- Williams-Sonoma, Inc. (WSM):
A solid candidate for dividend growth is Williams-Sonoma, Inc. (WSM). They have a strong history of paying dividends and recently their share price has been low compared to other companies in the industry so it’s not as risky when investing long term.
One thing that the broker liked about WSM that makes them stand out from competing retailers is they pay consistent quarterly distributions on the common stock with an average increase over time since 2004: 92% vs. market +65%. This means if you invest today, your annual income will continue increasing every year!
When seeking high-quality, dividend paying stocks for investment consideration that not only make for profitable long term prospects but also offer an attractive yield with strong growth potential as well – consider investing in WSM. With a three year earnings growth rate of 46.58% and dividends per share at .59 cents, the company is demonstrating its ability to continue growing while providing investors returns through shareholder payouts regularly!
- eBay, Inc. (EBAY):
eBay has outperformed the S&P 500 index over 1 month by 6.86%. Furthermore, there have been three Big Money signals from 26 April 2017 to 5 May 2018 (BAML’s US Focus List) indicating that this stock may be undervalued compared with other companies in its industry and can therefore offer better future returns than expected.
The eBay stock is a great dividend investment choice. When you look at the fundamentals, we can see that it has grown its dividends by 14% over 1-2 years and earnings are expected to grow 130%. This will likely result in an increase of yield which currently stands at .18 per share.
The broker thinks MA, SHW, WSM, and eBay are worth looking into as dividend stocks. They have a strong history of dividends growth with Big Money signals which makes them particularly interesting for an investor that wants to focus on yield.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.