In this low interest rate environment, dividends are still looking great. After all, the S&P 500 currently yields about 2%, and that is a heck of a lot better than you can get through most savings accounts. On top of this, dividends do two important things:
- First, a generous dividend payment lowers a stock’s volatility. I’d much rather own a stock that’s stable rather than one that scatters all over the place.
- They also tell me how much money a company really has. If the company is willing to part with cash in the form of a dividend payment, then I know they really earned it.
But you still have to do your homework and screen dividend stocks for fundamental health
. Stock selection remains critical with dividend stocks, because if you choose them correctly, you can make a fortune both as your invested capital appreciates over the years—and as the quarterly dividend grows.
And now is the perfect time to do so because we’re coming up on a bunch of ex-dividend dates over the next few weeks. I’ve listed the big dividends below, as well as my current Portfolio Grader ranking for each of these stocks.
Symbol | Company | Ex-Dividend | Yield | My Take |
AAPL | Apple | 8-Aug | 2.77% | Strong Sell |
BA | Boeing | 7-Aug | 1.80% | Buy |
CAG | ConAgra Foods | 29-Jul | 2.71% | Strong Buy |
CLF | Cliffs Natural Resources | 13-Aug | 3.28% | Strong Sell |
COST | Costco | 9-Aug | 1.05% | Buy |
DFS | Discover Financial | 6-Aug | 1.60% | Buy |
DUK | Duke Energy | 14-Aug | 4.43% | Hold |
EXC | Exelon | 13-Aug | 3.98% | Strong Sell |
F | Ford | 31-Jul | 2.36% | Buy |
FNV | Franco-Nevada Corporation ADR | 13-Aug | 1.66% | Sell |
HAS | Hasbro | 30-Jul | 3.35% | Buy |
HBI | Hanesbrands, | 9-Aug | 1.39% | Strong Buy |
HCI | Homeowners Choice | 14-Aug | 2.70% | Buy |
GSK | GlaxoSmithKline | 7-Aug | 4.88% | Hold |
KR | Kroger | 13-Aug | 1.54% | Strong Buy |
LLY | Eli Lilly | 13-Aug | 3.73% | Hold |
MCO | Moody’s | 16-Aug | 1.55% | Buy |
MSFT | Microsoft | 13-Aug | 2.88% | Sell |
PETS | PetSmart | 31-Jul | 0.92% | Buy |
PFE | Pfizer | 31-Jul | 3.26% | Buy |
SHW | Sherwin Williams | 14-Aug | 1.16% | Buy |
SJM | J.M. Smucker | 14-Aug | 2.12% | Strong Buy |
SON | Sonoco Products | 14-Aug | 3.25% | Hold |
TGT | Target | 19-Aug | 2.35% | Hold |
TXN | Texas Instruments | 29-Jul | 2.88% | Buy |
V | Visa | 16-Aug | 0.71% | Buy |