Dividend stocks are great long term investments that can provide a continuous profit stream, without needing to sell stock and reinvest. Dividends aren’t available for every company, and not every company always pays high on the dividends that they sell.
Knowing the right stocks can be something of a gamble, just like any investment in the stock market. However, you can turn things more towards your favor when you invest in dividends that have been high performers in recent months.
Here are three dividend stocks that are seen as good investments in 2018, thanks to either high returns, or consistent returns backed by a sound long term financial model.
JP Morgan Chase & Co. (NYSE: JPM)
JP Morgan Chase & Co. is interesting because it’s not even the highest dividend paying banking stock on the market (that honor would go to Wells Fargo). However, what it lacks in yield, it makes up for in a solid business model and consistency in performance. The most recent dividend yield for stocks in this bank was measured at 1.9%.
JP Morgan & Chase continues to grow, and with rising interest rates the bank could stand to earn more money on the top of loans and specialized financing. If you want to invest in a financial institution, then JP Morgan Chase & Co. looks to be one of the best ones at this time in 2018.
Johnson & Johnson (NYSE: JNJ)
Healthcare, consumer goods, and pharmaceutical company Johnson & Johnson has steadily increased their market capitalization, despite a turbulent stock market in 2018. With a dividend yield of 2.5%, investors in 2018 are set to receive a nice payout from the company. Shares in the company are reasonably priced and this makes the stock more accessible for newer investors. Earnings and total revenue have been steadily increasing for the company, indicating that they will remain profitable (and stock owner friendly) for the foreseeable future.
Apple Inc. (NASDAQ: AAPL)
For a long time, Apple has been the darling of the stock market and the tech world. Whether it’s for short and mid-term stock trading, or long term dividend stock investment, Apple Inc. is often seen as the strongest company on wall street.
This is for good reason. It’s the most valuable publicly traded company, it has worldwide prestige and brand appeal, and the company innovates on tech in-house to protect their business model and future profits.
Their dividend yield of 1.4% last quarter is not the highest in the market, but it’s still solid and the company has regularly been paying dividends in recent years. If you are investing for a regular profit stream, then this is one of the safest stocks to choose. Earnings growth for the company could increase by up to 25% this year if analyst predictions turn out to be true.
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