Being an investor and trader for the last 20 years has taught me that there are always opportunities out there. One of my dreams, is to build a portfolio of dividend paying stocks that will allow me to retire on passive income while having some growth.
I am not alone in my dream and often get asked “How to find stocks that are dividend growth stocks.” The answer to first find established companies that pay a dividend. The second step is narrow it more by companies that are industries that are experiencing growth and increasing market share.
The reality is stock and investment research takes time and is not easy. I adopt a balanced strategy and rank each stock by technicals (charts), fundamentals (business numbers). In addition, I must understand the business and market. This is one lesson I learned when researching Warren Buffet and talking to other investors.
Lastly I need risk to on my side when searching for stocks. My worse trades were when I bought with the crowd and ignored the fundamentals. It is very easy right now because there are many stocks that are moving purely on stock market momentum.
A short warning, many investors use stock screener tools to find the highest dividend stocks. They can be great and I personally use Finviz.com to start many of my searches for stocks. However, the highest dividend paying stocks are often real estate investment trusts (REITs) or Business Development Companies (BDCs). Investors need to very careful before investing in either a REIT or BDC because there are often HUGE risks that the average person can’t see.
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Up first is Skyworks Solutions, Inc. (SWKS), which is the main semiconductor organization. The dividend is reliably developing and raising by Skyworks.
Skyworks has a strong dividend history:
• Dividend growth rate of three years: +14.2%
• Current profit per share: $0.50
• Three-year profit development rate: – 2.15%
The graph above shows the big money signals Skyworks stock has made over the last year. The current trend is very BULLISH with the SMA 20, 50 and 200 signally a strong upward trend. Skyworks has recovered enormously in spite of the fact that the coronavirus pandemic targeted all stocks and influenced productivity.
Current Price Recommendations
The Benchmark Company
$155 → $165
$150 → $170
$155 → $160
B. Riley Securities
$190 → $195
$140 → $155
Broadcom Inc. (AVGO):
Broadcom is another leading semiconductor company. The company has an endurable dividend history because the Broadcom’s shares have recuperated from the pandemic selling pressure.
Broadcom has a pleasant dividend history:
• Three-year profit development rate: +76.1%
• Current profit per share: $3.25
• Three-year profit development rate: +262.35%
The following are the huge money signals that Broadcom stock has made over the previous year. Unmistakably the stock has mobilized back after a major market-wide pullback. The current trend for AVGO is very BULLISH with the SMA 20, 50 and 200 signally a strong upward trend.
$305 → $350
In-line → Outperform
$325 → $350
$250 → $350
$230 → $305
The Home Depot (HD):
The Home Depot, Inc. (HD) is a main home improvement organization. Home Depot is a great dividend stock with an incredible stock price climb. It has been one of our favorite stocks to watch.
When settling on the best dividend stock, on the top of technicals, you should look beyond to check whether the interior portrait bolsters a long-term investment. As should be obvious, Home Depot has a solid dividend history:
• Three-year profit development rate: +25.4%
• Current profit per share: $1.50
• Three-year profit development rate: +17.29%
You can see that the stock has stabilized back from a dip recently. HD stock is very BULLISH with the SMA 20, 50, and 200 signally a strong upward trend. Personally we love buying on the dip.
For the long-term dividend investor, shares of Skyworks Solutions, Broadcom, and Home Depot speak to a potential purchasing opportunity. Given the solid verifiable dividend development and huge cash signals in the shares, these stocks could merit a spot in a yield-situated portfolio. As always, do your own research and make sure they are appropriate to your personal investment goals.
Irving Wilkinson is the Editor of AlphaBetaStock.com. Prior to joining ABS, he has worked a financial advisor and inside sales desk manager for a broker-dealer. He brings nearly 20 years of experience investing and has a Masters Degree from Western Governors in Business Leadership.
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