What are the Best Dividend-Paying Stocks in 2016?

What are the Best Dividend-Paying Stocks in 2016?

Dividend-paying stocks are a great way to earn steady income from your investments. In 2016, there were several stocks that stood out as top performers in terms of dividend payments. Here are some of the best dividend-paying stocks from 2016 and what makes them stand out.

1. Johnson & Johnson (JNJ)

Johnson & Johnson is a healthcare giant that has been a reliable dividend payer for over 50 years. In 2016, the company paid out a dividend of $3.20 per share, which equates to a dividend yield of 2.8%. The company’s diversified business model and strong financial position make it a solid choice for dividend investors.

2. Procter & Gamble (PG)

Procter & Gamble is a consumer goods company that has been paying dividends for over a century. In 2016, the company paid out a dividend of $2.68 per share, which equates to a dividend yield of 3.1%. The company’s portfolio of well-known brands and focus on innovation make it a reliable choice for dividend investors.

3. Verizon Communications (VZ)

Verizon Communications is a telecommunications company that has been paying dividends for over 30 years. In 2016, the company paid out a dividend of $2.31 per share, which equates to a dividend yield of 4.5%. The company’s strong brand and position in the telecom industry make it a solid choice for dividend investors.

4. Coca-Cola (KO)

Coca-Cola is a beverage company that has been paying dividends for over 50 years. In 2016, the company paid out a dividend of $1.40 per share, which equates to a dividend yield of 3.4%. The company’s global brand recognition and focus on diversification make it a reliable choice for dividend investors.

Investment Strategies for Dividend-Paying Stocks

When investing in dividend-paying stocks, it’s important to consider the company’s financial position, dividend history, and growth potential. It’s also important to diversify your portfolio to minimize risk. One strategy is to invest in a dividend-focused ETF, which allows you to invest in a basket of dividend-paying stocks.

Another strategy is to reinvest your dividends. By reinvesting your dividends, you can compound your returns over time and potentially earn even more income from your investments.

Investing in dividend-paying stocks can be a great way to earn steady income from your investments. By doing your research and diversifying your portfolio, you can make informed investment decisions and potentially earn significant returns over the long-term.