Three Outstanding Dividend Shares to Invest in Before Time Runs Out
Investing in dividend stocks isn't just for income seekers who need additional income. Even billionaires with no income needs have dividend stocks in their portfolios. So, which dividend stocks are worth considering now? Here's why three Fool.com contributors recommend AbbVie (ABBV), Johnson & Johnson (JNJ), and Pfizer (PFE).
Something for Every Investor
Keith Speights thinks AbbVie offers something for nearly every investor. Income hunters will appreciate AbbVie's 3.6% forward dividend yield and its impressive 52-year dividend growth streak. Value investors may be drawn to the stock's price-to-earnings-to-growth (PEG) ratio of 0.44, making it relatively cheap compared to the healthcare sector. Even growth investors can find merit in AbbVie's diverse pipeline and potential for high-single-digit percentage compound growth. Overall, AbbVie could deliver attractive total returns for long-term investors.
A Stock That Stands the Test of Time
Prosper Junior Bakiny acknowledges that the past year hasn't been kind to Johnson & Johnson, but the healthcare giant's 100+ year history and strong fundamentals indicate that it will weather any challenges. As a Dividend King, Johnson & Johnson has increased its dividend for 62 consecutive years. With a forward yield of 3.21%, Johnson & Johnson presents an attractive investment opportunity for income-focused investors, despite its current underperformance.
A Bargain Dividend Stock
David Jagielski believes that Pfizer offers a relatively high dividend yield of 6.6%, making it an attractive option for income investors. Despite concerns about declining COVID sales, patent cliffs, and a high payout ratio, Pfizer's financials suggest that the dividend is sustainable. In fact, Pfizer's earnings comfortably cover its distribution, which means the yield may not stay this high for long. By investing in Pfizer sooner rather than later, investors can capitalize on its high yield before its valuation and dividend yield increase.
Keith Speights also highlights that money management is essential when investing in dividend stocks like AbbVie, suggesting that investors should consider reinvesting their dividends to maximize growth over time.
Prosper Junior Bakiny emphasizes the role of finance in supporting Johnson & Johnson's strong dividend performance, stating that the company's robust financial health allows it to consistently boost its dividend payouts to shareholders.
