A dividend stock is a company that pays out some of its profits to its shareholders. A dividend is the income returned to investors on the stock market, calculated as a percentage of per-share profits. The dividends are calculated based on earnings, share price, and debt levels.
Examples of dividend stocks that are safe to invest in
Johnson & Johnson
Johnson & Johnson (JNJ) is a global manufacturer of medical devices and pharmaceuticals. It provides health care products that help women give birth, treat cancer, prevent infection, and manages diabetes. The company’s products also help people deal with sleep disorders, depression, ADHD, and allergies. JNJ pays out $2 in dividends for every $1 per share it earns with its annual revenue of $74 billion. Its stock price has grown 27% over the past year because of the increase in revenue and strong sales growth. Johnson & Johnson has a dividend payout ratio of 54%.
Wal-Mart Stores Inc.
Wal-Mart Stores, Inc. is an American retail corporation that sells goods and services to individuals and consumers under the name of Wal-Mart and other stores. Its store buildings throughout the country help consumers find all the products they need for their cooking, cleaning, and recreational needs at low prices. Wal-Mart has a current dividend yield of 1.7%.
United Continental Holdings Inc. (UAL)
United Continental Holdings Inc. is a U.S.-based company that operates as an airline carrier on behalf of United Airlines, Continental Airlines, and United Express carriers. The company provides air transportation through its subsidiaries between all 50 states, the District of Columbia, and Puerto Rico. Travelers can find valuables such as jewelry, clothing, and electronics at discount prices at more than 4,500 stores in the U.S., Mexico, and Canada. United Continental Holdings will pay out a $0.78 quarterly dividend in 2018.
Philip Morris International Inc. (PM)
Philip Morris International Inc. is one of the largest tobacco companies in the world, owning more than 50% of the worldwide cigarette market share, which makes it also one of the largest producers of cigarette brands such as Marlboro, Parliament, Camel, and Virginia Slims in various parts of the world. Philip Morris International has a dividend yield of 2%.
IBM Corporation (IBM)
International Business Machines Corporation or IBM is a technology and consulting corporation founded in 1911. It provides new technologies and services worldwide to various companies and governments, including blockchain-based smart contracts. The company’s revenue has increased by 2% over the past year because of its improving sales of software, growth of cloud computing services, and data analytics. It will pay out a total dividend of $1 per share in 2018, as it did a year ago.
Merck & Co. Inc. (MRK)
Merck & Company, Inc. is a global pharmaceutical and health care company created by German brothers August, Max, and George Merck in 1891. It is a subsidiary of Merck KGaA, Germany. The company offers prescription medicines in over 200 countries for asthma and heart problems. It will be paying out a $0.45 quarterly dividend in 2018 after paying $0.75 per share in 2017.