Best Dividend Stocks To Buy For 2016 To Get Rich!

Best Dividend Stocks To Buy For 2016What are the best dividend stocks to buy for 2016 and beyond?  The time of massive dividends is upon us.  We know that a majority of companies are loaded with cash and are finally starting to increase their dividends.  With that being said, what are the best dividend stock to buy that would maximize our returns?  No need to panic, we are going to show you are top 5 list and you can take advantage of it when you are ready to increase your returns.It is always hard during a bull market run like we are experiencing to pick 5 stocks.  Believe it or not, when the market is low, dividends can be very huge based on the actual price of the stock.  Most companies try to continue to pay the same dividends even during recessional times, thus increasing the dividend rate.  But when stocks are riding all time highs, the dividend rate drops to very low levels compared to the prior recessional times.  So does that mean we can find the best dividends to buy?  Absolutely not!  Companies are loaded with cash right now and are looking for ways to spend it.  Many companies are doing stock buy back programs, while others are busy raising their dividend rates.  Out goal is to single out a few for our readers that will lead to even more cash in their portfolios.  Here are our top 5 dividend stocks to buy for 2016 that we feel are worth taking a look at.
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Best Dividend Stocks To Buy For 20161.  Amerigas (APU):  This stock comes in at about $43.61 a share.  It is quite the stock to buy and here is why.  They are trading at a P/E of 13.70 which is not all the bad for this bull market.  They have increased dividends in the last ten years which is one of the main reasons I love buying this stock.  Now for the best part, they are paying out about 8.44% per year in partnership payments.  These payments are pretty much just like dividend payments, but when you buy into this company, you become a partner and not just a shareholder.  Here is a little bit of information about the company…AmeriGas is the nation’s largest retail propane marketer, serving over two million customers in all 50 states from over 2,500 distribution locations. UGI Corporation, through subsidiaries, is the sole General Partner and owns 26% of the Partnership and the public owns the remaining 74%.  They are a practical monopoly when it comes to selling propane.  Now that we covered the good news, we need to let you know about the bad news.  Amerigas (APU) has earnings that kind of stay flat over the next 2 years, but like I said above, they have consistently increased dividends even during recessionary times.  This is a longstanding quality company that I have owned for quite a few years and will continue to own them going forward.  Best dividend stocks to buy for 2016?  Amerigas is definitely one of them.

Best Dividend Stocks To Buy For 20162.  Verizon (VZ):  This stock is being recommended at a price of $51.80.  Now they are not throwing up huge dividends, but a respectful 4.36%, which is nothing to sneeze at.  If you need a little intrigue with this stock, just know that Warren Buffet added it to his portfolio of companies that he is investing in.  It is trading at a fantastic 11.86 price to earnings ratio which means we should expect about a 50% increase in price in the next 3-5 years.  Anyone that has been reading my stock picks, like these ones, knows that I am a value investor.  I try to stick to buying stocks that have a P/E ratio of under 15, which is the stock market’s long term average.  This tells me that there is some room above and beyond normal market runs.  So you can see why Verizon stock is looking like a major steal at this level.  They are dishing out dividends in the mid 4% range and have a great chance at a long term appreciation run.  Combine the two, and you can see why this is a best dividend stocks to buy for 2016 top five.

Best Dividend Stocks To Buy For 20163.  McDonalds (MCD):  This is a stock that is trading at 117.12 and has witnessed some very nice gains over the last year.  (About 20%) This is one of the reasons I like it so much.   This is a nice gain for a stock that has soared to ultra high P/E ratio levels.  They are now around 24.36 which is getting up there in standard terms of price to earnings levels.  I know it seems a bit high, but that is because a ton of money is heading into this stock in order to protect against any downturns to the economy.  It is what they call a safety stock for recession times.

McDonalds is paying out about 3.04% annual dividends and has had a dividend growth rate that is well above inflation.  Think about it like this…do you want to buy a company at it’s all time high or after a correction period when the stock price dropped and got to a more respectful range of price value?  Remember that most professionals know that the time to buy a stock is when the public is afraid to buy it, like one of my latest write ups concerning Gazprom.  And then the time to sell stocks is when the general public starts loading up on it.  McDonalds is the kind of stock that starts to pick up steam when we start to hit a troubled period of time concerning the market in general, which I am expecting to see in the next few months.  If you are really concerned about McDonalds like it is isolated company suffering, just take a look at YUM Brands stock. (YUM)  Their chart is following an almost identical pattern to McDonald’s chart.  This shows an overall industry correction and not just a McDonalds thing.  And with McDonalds, you get almost twice the dividend rate.  This is why McDonalds is a best dividend stocks to buy for 2016 top 5.  It is a solid retirement account stock going forward.

Best Dividend Stocks To Buy For 20164.  Phillip Morris International Inc. (PM):  If your morals will allow you to invest in a tobacco company, then you are going to love our 4th stock selection.  Phillip Morris $94.44 a share comes storming in with a very high 4.32% dividend rate that explodes with potential.  The company itself is expected to generate an extra dollar in earnings from $5 to $6 a share from 2016 to 2018.  This will give the stock some pressure from fundamentals to appreciate in value.  This is a company that is moving in the right direction in worldwide sales that look only to continue as they continue their globalization.  If you are looking to score some serious dividends from a company flush with cash, then you are going to love this.  It is why we see Phillip Morris as one of the best dividend stocks to buy for 2016 top 5.

Best Dividend Stocks To Buy For 20165.  Wells Fargo & Company (WFC):  I put this stock in the list for a little bit of risk versus reward.  You are buying a very good stock that is paying out some nice dividends.  This is a fantastic stock that has seen some depreciation on it’s stock price over the last year.  What does that mean for those that kept money in there for the last 12 months?  It means about a 10% lost and a write off come tax season.  What does it mean for all of us?  A chance to invest in a company that now has a price to earnings ratio of 12.16.  That means that would should expect a huge bounce back over the next few years when the company’s stock gets the fundamental respect it deserves.  They are paying out about 3% in dividends now because of the drop in stock price.  This is a huge chance to your hands on a company that is paying out some respectable dividends and that is earning a solid amount of cash per share.  This is why WFC made the best dividend stocks to buy for 2016 top 5 list.



Best Dividend Stocks To Buy For 2016Now that you have the benefit to see a few of our best dividend stocks to buy 2016, you need to understand that the S&P 500 is only paying out 1.91% on average in dividend payments.  So any company that is paying out more than 1.91% is beating the S&P 500 average and that is a good thing.  Couple those companies with a solid price to earnings ratio, and you have yourself a great investment with some strong future prospects that you can feel confident about.  There are a few other dividend stocks out there that Forbes recommends here if you are still looking for other options.  But be warned, that there is no such thing as a guaranteed winner.

Best Dividend Stocks To Buy For 2016

Comments

  1. Love apu … great stock to run to the bank with. How about a couple of more picks?

    • Stock Moe says:

      Working on my next gem now. I would suggest ZYNE for tomorrow on a continued run from today and then take the gain of course the table before closing bell. Pure day trade just so you know.

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