There are two crucial things to look for when investigating dividends. The dividend yield percentage, which is the stock’s dividend divided by its share price. And the ability of the company in question to keep paying and raising its dividends.
Our top picks that give both of these, and can be bought with just $300 are listed below:
You can buy one share of AbbVie (ABBV) for about $111. The drugmaking heavyweight pays you well to be a stock holder. AbbVie’s yield is at around 4.7%.
The odds seem good that AbbVie’s dividends will keep growing. The company has boosted its dividend for 49 years in a row. It’s only one dividend increase away from joining the top elite of dividend royalty of companies who have increased their dividend for 50 consecutive years.
There are a some issues to know about with AbbVie. The firm’s top drug, Humira, loses its patent exclusivity in 2023. Also, the FDA has delayed its reviews of Rinvoq in treating psoriatic arthritis and dermatitis. AbbVie is counting on the autoimmune drug to help offset the loss of sales from Humira.
However, AbbVie is still confident about the potential for FDA approval of Rinvoq. The drug has already received FDA approval for rheumatoid arthritis uses. Assuming this drug and others in AbbVie’s product line meet their potential, the company is anticipated to keep growing even after Humira loses its patent.
Pfizer’s (PFE) price is under $40 currently. Its yields are almost 4%. Note, however, the pharma giant will soon cut its dividend.
You shouldn’t be concerned about this. It’s being done in combination with Viatris starting a dividend. Viatris was created in November 2020 through the merger of Mylan and Pfizer’s Upjohn sector. Pfizer’s dividend will only be lowered by a small amount.
Pfizer seems to be in a great position to boost its dividend. Its potential for recurring revenue from its COVID vaccine are also looking much better. The drugmaker and BioNTech recently agreed with the European Union (EU) to deliver 100 million more doses of their vaccine, bringing the overall supply to 600 million doses. The two firms are also talking with the EU to give another 1.8 billion doses between now and 2023.
Verizon Communications’ (VZ) price is below $60. The company’s dividend yield is at 4.3%. Verizon has increased its payout for 14 years in a row.
The company seems to be ready and able to keep that trend of dividend increases going. Verizon reported spectacular earnings growth and revenue in its latest report. It has a great financial position.
It’s also among the easiest ways to profit from the move to 5G. The wireless technology is only just getting start but should be an important driver for Verizon over the next years.