3 Great Dividend Stocks For Dividend Investing 2020
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Today we share 3 great dividend stocks for dividend investing over the coming years. These dividend stocks should raise their dividends in future years and see their shares go up.
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Three great dividend stocks for dividend investing. That’s what we’re talking about here today guys, I’m going to share with you three stocks that I believe are going to be great dividend stocks going in future years and not just share what these stocks are.
But I’m going to share with you exactly why I believe these three particular stocks are going to be great dividend stocks in the future. And in times like now, when the markets only I think the Dow is only up like 2% in the past year, in times like that, you know, people kind of think about like, how can I make more money from the stock market?
Oh, dividend investing is one way because not only do you get the potential gains on the stock, but you also get that dividend income, okay? dividend investing can kind of be forgotten about when the markets real hot when you got to mark it up 15% 20% 25% in times like that when the stock market’s really hot, like people kind of like shy away from dividend investing is all about getting the gains.
But when the market gets rough when the markets not doing much dividend investing comes back, okay, now, I’m not strictly a dividend investor, but I do always make dividend money. And so the way I kind of think about like, what makes a great dividend stock?
There are three things okay, how likely is it for that stock to outperform the market over the next five years, I want to be in a stock that I believe is going to be able to like outperform the market likely over the next five years. So let’s say over the next five years, the stock market goes up 50% I want my money in stocks that I believe will grow more than 50% I’ll get more than 50% gain in that stock.
Okay, so that’s the first thing I think about when I’m thinking about a great dividend stock. Number two, I want to think about a stock that is likely to continue to pay dividends, okay, like all the time guys, companies cut dividends, where they stopped paying dividends all together or something like that.
I want a company that’s in a really strong financial position in their business model is very, very strong, that they’re likely to continue to pay dividends for years and years in the future. If I’m buying a stock planning, I’m probably holding that stock for three years, four years, five years down the road.
I don’t want some stock that also is going to cut their dividend tomorrow because you know what happens when they cut their dividend the stock gets cut huge because a ton those dividend investors sell out and then all sudden you’re in a stock that you get less dividend money or maybe no dividend money and the stocks being cut you know by 20% 30% you put yourself in a very bad position great dividend.
Stocks should be one that can continue to pay out great dividends in the future. Okay, the last thing is a stock that is likely to raise a dividend amount probably each and every year. Okay, I want to stock This not only paying out a decent dividend now, but one that’s going to pay out probably a lot more money in the future and that’s going to all depend on how their earnings go in the future and their payout ratio.
So hope you guys enjoy this. As always, by the way if you want to know the top five stock market apps and websites I use the PDF is linked down there in the description you basically just join the Facebook Messenger and they’ll send you over that PDF. Okay guys, let’s start getting into so stock number one is a company named tapestry.
This is a fashion house that owns three pretty popular brands, needless to say, Coach Kate Spade and Stuart Weitzman Okay, ticker symbol on this one is TPR is about a $26 stock and I just bought my first shares in the stock here today. I’m going to likely continue to buy this one as long as it stays here or goes even lower over the coming months.
Okay, this is a stock that’s right now is pretty much at its 52 week low. I mean, if you look at its 52 week low, it literally hit the lows today. Okay, market cap on this one is about $7.64 billion. Once again, they own those great brands coach Kate Spade, Stuart Weitzman, some phenomenal brands, their p e ratio of about 11 on the stock here at this particular time for dividend yield of nearly 5% on this one, okay. 4.74%.
So needless to say, this is a stock that already pays out really, really strong dividends currently, okay, now here in the short term, they are being hit by the tariffs. Okay, bottom line, they’re being hit by the tariffs right now. I mean, a lot of their products have been hit by like a 25% tariff, and they have to actually pay that tariff.
So until they get production moved to other countries, or maybe back to the US or Intel, those tariffs are taken off basically here in the short term, their profitability is being hit in a major, major way. Because when you have to pay those tariffs, it you know, kind of destroys your short term profits, at least here in the short term. Okay.
And that’s a ton of companies, pretty much any company that manufactures products in China has been hitting a major, major way by these tariffs right now. And it’s just something the company has to deal with in these different industries, such as the fashion industry have to deal with here in the short term.
Okay. However, you look, it’s still a very profitable company. I mean, even in the last quarter, they made $117 million of net income and likely as the year continues to go on, they should remain a very, very profitable company, even with the tariffs. Okay.
Now, I love to pay attention to balance sheet regardless of whenever you’re looking into a stock, but this one has a great balance sheet, okay, well over $1 billion sitting around in cash and cash equivalents. Okay. It’s approaching $1.1 billion there.
Then short term investments, they have another $262 million sitting around a short term investments, and they have about $1.6 billion in long term debt. So from a perspective of looking into a lot of these companies nowadays, that’s actually a really good balance sheet.
It’s not quite a one to one ratio, but it’s pretty dang close. And when you got that type of money sitting around in cash and cash equivalents and short term investments, but you’re in a big position of power, when it comes to maybe buying other fashion brands in the future, you know, maybe during a recession or something like that, or just getting through tough times, the fashion industry can be up and down.
One minute, you’re hot, and you’re selling product like crazy. And next minute, you’re kind of down now. And it’s just that’s just a roller coaster of the fashion industry. And so for a company like tapestry to have a really strong balance sheet.
It is very, very vital for the fact that they can more than likely continue to pay that dividend out and raise the dividends in the future. Okay. Now once again, profitability being hit in the short term, as we talked about with the whole tariffs and the trade war and all that stuff, right.
So their EP s here in the short term is expected actually go down looking at next year, the EP S is actually expected to rise to $2.85. So the business is expected to go back to growth. Something I love to look at when it comes to dividend stocks is like how often does this company pay dividends?
Do they consistently pay those dividends out? What’s their track record? Do they raise dividends ever? And if you look at this one have very, very consistent dividend payer over the years, which is obviously phenomenal thing payout ratio under 60% on this stock, which is obviously definitely something I’m very fond of.
I don’t like payout ratios of 80% 90%. I don’t like those type of payout ratios with companies. But we’re talking about you know, 60% payout ratio, 50% payout ratio, I like that because it means it has a lot more wiggle room to raise that dividend in future years, even if even if the APS was not to grow much.
Okay, so tapestry Corporation absolutely a company I’m personally buying right now and actually a company I think it’s going to be a big dividend payer out in future years. Okay, guys, next one up. Here’s a company named sky work solutions.
This is a company that has an immense opportunity to expand their business in future years with 5g and basically, whatever device you’re watching us on, if you’re watching this on a computer, especially if you’re watching this on a tablet, or a mobile phone, a smartphone, something like that, you’re watching this video on that there’s a good chance there are several sky work solutions chips in the device you’re watching this video on right now.
They’re very important company, needless to say in pretty much every electronics company out there with their connectivity chips, and 5g is a massive opportunity in front of this company. Okay, so skyworks Solutions once again, ticker symbol, s w k s, and this one’s about $76 stock right now.
52 week range on this one’s anywhere from $60 to $95. Oh, somewhere kinda in the middle there, big, big market cap on this one over $13 billion. So it’s no small company e ratio about 14 and a half on this one. And as far as the dividend yield only 2.2%.
And some people look at that. And they’re like, only a 2.2% dividend yield. You understand whenever you’re buying into these dividend stocks, it’s all about like not only what you’re getting now, but what do you get next year for dividends? What about the following year? What about the following year, and when I look at this business model, and I look at this company, this is going to become a dividend beast in future years in my personal opinion.
Okay, as we spoke about 5g is a massive, massive opportunity for this company. Okay, and we’re already gonna start seeing 5g phones start coming out this year, but it’s really gonna go crazy in 2020, and 2021. Okay, if you didn’t see galaxy launched their note 10.
And that’s a phone that already has some 5g capabilities in it. Okay, this is absolutely phenomenal. That 5g is already getting in some of these devices. As we spoke about 2020 and 2021. Those years 5g is going to take off and it’s really become a mainstream thing this year. You know, 5g is very nice.
Not everybody knows about it, unless you’re an investor, you’re actually looking into 5g stocks and whatnot, but actually 2020 2021 in future years, that’d be a massive growth opportunity for a company like skyworks solutions. So right now here in the short term, they’re being hit by basically the Huawei situation.
So Huawei was between 10 and 15% of their revenue pretty much almost every single quarter. And basically, that went away overnight with the whole ban on Huawei and things like that, and that hit all these companies that do business with Huawei. So nice to say skyworks Solutions is one of those companies.
That’s why their EP S is going down. And on top of that, you obviously have Apple being in a tough position, not selling as many iPhones this year, as last year. So all those kind of make for negatives, but it’s really the Huawei situation at the end of the day. And so that makes her profitability go down this year, but expect to get back to growth next year.
And then look for those future years. As 5g continues to get put out bigger and bigger and bigger. That’s going to be a huge thing for that company over time. Okay, very, very low payout ratio in this company somewhere between 30 to 35% current payout ratio for this stock.
So I absolutely love that about this company, very low payout ratio and a company I expect to expand earnings per share dramatically, dramatically in future years. Okay. So needless to say, that’s a really, really good sign from a perspective being able to raise that dividend massively over let’s say the next 357 years out okay, cash and cash equivalents on this one of 742 million.
They also have short term investments sitting around at home 200,000,190 2 million, they’re 35 million of long term investments, no short term debt, no long term debt, that’s a phenomenal balance sheet. They’re even, you know, a company that you know, can go through tough times, or if the semiconductor industry kind of goes through tough times.
If there’s a recession or something like that, once again, another company is in a phenomenal position to load up on some of the smaller semiconductor companies and buy them out and things like that, okay, and continue to pay out their dividend. So once again, people are going to get caught up into the 2.2% dividend yield.
And as we spoke about, it’s not just about what you’re getting for dividend yield, all about a company that can continue to pay off dividends and and skyworks Solutions case I don’t see any way they basically cannot pay out at least what they’re paying out now in dividends.
But also, when I look at where their business model could go, as 5g starts to take off over the next few years, I believe they’re going to raise that dividend amount substantially. And I believe this will be a stock you know, in five years from now, that will probably pay, you know, a dividend of 50% bigger if not 100% plus bigger than what they pay today.
Okay? And so that’s why I love Skywalk solution as a potential huge future dividend. And also, I believe as a stock that will likely outperform the market over the next five years as long as they continue to capitalize on their huge opportunity and 5g in front of them guys, and so that’s why.
I came in number two, and getting into number through now is a company named winning resorts and if you don’t know Wynn resorts they have some huge integrated resorts here in Las Vegas, Wynn and encore properties, beautiful restaurants they do shows their efficacy no obviously massive hotel towers.
They have properties in Macau two properties in Macau. They have one in Cotai, which is right outside of Macau. And that’s kind of becoming the Las Vegas Strip of Macau, needless to say, and they have an unbelievable property. They’re one of the most profitable integrated resorts in all the world and should continue to be for years and years to come in winpalace.
Okay, and then they just opened up a property about a month ago, right outside of Boston called encore Boston Harbor. So needless to say, this is a company that has some unbelievably very profitable, beautiful properties that are going to stand the test of time and still be highly relevant properties if not more relevant five years out, 10 years out 15 years out from now.
Okay, so Wynn resorts has ticker symbol w y and ends about $107 stock 52 week range on this one to $90, all the way up to $151, marine cap of about $11.5 billion, which is I think, way too low. When you look at the type of properties they have, you know, these are unbelievably unparalleled properties pretty much anywhere in the world.
So I just think that market caps far too low if you’re looking at a long term basis on this company, P e ratio of 14 on this particular stock forward dividend yield of about 3.6% on this particular stock as I need to say this is a strong dividend payer already, but I think they’re gonna be able to pay out much better dividends actually in the future. Okay.
So as of right now, they look like they have earnings per share going down. Why is this? Well, it’s not just because of some of the Chinese weakness, it’s mainly because of their encore Boston Harbor expenses. Basically, whenever you open up one of these huge properties, it’s very costly, because you have no money coming through the door, but you have all these employees getting trained and whatnot.
And you have marketing expenses, all those sorts of things through earnings per share, it gets hit in the short term, but it’s obviously a very, very great long term benefit. So if you look at even next year, this is assuming some very conservative numbers out of Macau, it’s a company that shouldn’t see their earnings per share, go all the way up to about $7.23.
At least that’s what analysts on average are expecting. Okay, now a lot of things can move around as Macau going to be in a much stronger position next year, are the numbers going to be really weak? You know, these are pretty conservative numbers, needless to say, but things could always get worse or better.
You No need to say okay, hey, our ratio is a little messed up on Yahoo Finance, really their payout ratios, somewhere around 60%, roughly, but that’s not super high. When you kind of think about a stock like this, that’s already a big dividend payer and will likely continue to raise a dividend in future years. Okay. 60% payout ratio, not too bad. All right.
Now, they’re also supposed to be doing another project in Macau probably start construction within next couple years, which is going to be a $2 billion expansion building a whole nother huge, beautiful tower right off its wind palace property, and also building this unbelievable crystal pavilion that’s gonna have a theater and museums and all those things.
And they say, why would they want to build something like that spend all that money, it was not even going to make them that much money? Well, it’s all about getting more people into your property. Because get more people in your property, more people that are likely going to want to stay at your property and spend money at the hotel, then spend money at your restaurants and your bars and your lounges in the casino.
All those things are very, very important. So as an integrated resort, you want to bring as many people into it as possible, especially people that have money, okay. And this is a company that very consistently pays dividends. If you look they paid a very consistent 50 cent dividend, even when Macau was kind of down and out there for a couple years and they were opening on wooden pallets at the same time, then that raises up to 75 cents last year.
Now that raises up to $1. And this is a type of company that I believe in the future will be able to raise their dividend 25 cents a year or so and get that dividend bigger. bigger and bigger in the future guys. So those are three great dividend stocks in my opinion. Let me know what you think about these dividend stocks.
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