Hello Investors!
I am going to be trying something different, and I will start to post every week. It has been a while since I have posted something about dividends and how you can create passive income while you sleep. Before I get into what my top three dividend stocks are, I want to give everyone the definition of dividends just in case no one knows what that is.
Dividend – a sum of money paid regularly by a company to its shareholders out of its profits.
That definition was from just googling dividends. If you ever need help understanding what words mean or how to do things then just google it. You will be surprised at how much you can learn from google.
My top three dividends:
The Coca-Cola Company (KO) – 67.30 per share as of 10/24/24
Dividend & Yield – 1.94 (2.85%) – Annually per share. Usually split in four quarter payouts.
You really cannot go wrong with KO because if you look at the dividend history, KO has always increased their dividends every year. This has been one of my favorites since learning about dividends and following what Warren Buffett believes in. I have always followed Warren Buffett’s quote that “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes”. If you do your research, you will find that Coca-Cola has a long history of being sold and bought all over the world. Most third world countries like the Philippines buy Coca-Cola from the United States. Everyone in the world knows and drinks Coca-Cola. These are the things you need to consider when buying into a stock. You are buying into a share of the company, and you can consider yourself part owner along with all the other shareholders.
Exxon Mobil Corporation (XOM) – 119.59 per share as of 10/24/24
Dividend & Yield – 3.80 (3.16%) – Annually per share. Usually split in four quarter payouts.
Exxon Mobil is a great company if you are looking for another dividend stock that increases their quarterly payout. You really cannot go wrong with oil companies because no matter what oil will always be in demand. The world cannot go fully electric to even come close to what gas can do for an extended period of time. Oil is like liquid gold for every country. If you can afford the price of 119.59 per share, I would suggest you start investing in Exxon Mobil, so that you can start compounding your dividends. Dividend investing does take money to make money, but you can use the power of compound interest to help grow your account.
Chevron Corporation (CVX) – 150.45 per share as of 10/24/24
Dividend & Yield – 6.52 (4.33%) – Annually per share. Usually split in four quarter payouts.
I do not know about you but living in Hawaii I usually see a few Chevron owned gas stations. If you did not know, Texaco is owned and operated by Chevron. Chevron also owns all the Caltex gas stations around the world, but most people know Chevron and Texaco gas stations. When I look at google maps Caltex gas stations are located in places like the Philippines, Australia, Malaysia, New Zealand, and it looks like one in Texas. Once again if you can afford this high stock price and you can buy multiple shares of Chevron then go for it because you will be getting $6.52 per share annually. Chevron is also known for increasing their dividends every year.
In conclusion to my top three dividend stocks, I want to be clear that dividend stock investing is not for everyone. Dividend paying stocks is only one of the many options to invest and make passive money. There are Index funds, ETFs, Bonds, and CDs that can also generate passive income. You as the investor need to decide what is best for you. I started as a dividend investor, but soon realized I can focus more on individual stocks like Apple. The other tip I can give is do not spread yourself too wide when investing. Keep your portfolio small and focus on your favorite Stock, ETF, or Index fund. Do not invest what you cannot afford to lose.
Until next time…Have a wonderful weekend and remember it is never too late to start investing!
Current Goals:
Individual Stock Account + Traditional IRA Account – 984/1000 shares of Apple Inc. (AAPL)
Individual Stock Account – 20/100 shares of Nvidia Corp. (NVDA)
Roth IRA Account – 71/100 shares of Vanguard S&P 500 ETF (VOO)
Future Goals:
Individual Stock Account – 41/100 shares of Alphabet Inc. (GOOGL)
Individual Stock Account – 22/100 shares of Amazon.com, Inc. (AMZN)
Roth IRA Account – 58/100 shares of Vanguard Russell 1000 ETF (VONE)
My Investments
Combined Value of – $358,002.08
Apple Savings Account (4.10% APY) – $1,477.99
Yen (Average Rate 140.75 USD/JPY) – JP¥185000
Individual Stock Account – $207,736.73
Roth IRA – $109,141.94
Traditional IRA – $39,645.42
It is never too late to start investing!