(1:00) – Building Passive Income Using Dividend Paying Stocks(6:25) – Are ETFs The Best Way To Gain Exposure To Passive Income?(10:45) – Dividend Aristocrats To Keep On Your Radar(34:00) – Episode Roundup: NOBL, REGL, WBA, TROW, ITW, NUS, WSM, IBM, MSFT [email protected] Welcome to Episode #337 of the Zacks Market Edge Podcast.Every week, host and Zacks inventory strategist, Tracey Ryniec, shall be joined by friends to debate the hottest investing matters in shares, bonds and ETFs and the way it impacts your life.This week, Tracey goes solo to debate dividend investing. Dividends are “again” and are standard with buyers in search of some passive revenue.On Twitter lately, a dividend investor tweeted his aim was to get $100,000 a 12 months in revenue from a $2 million portfolio. That can be a yield of 5%.Some argued {that a} 5% yield was too troublesome to acquire and he would both make much less or want an even bigger portfolio with a purpose to get it.Is it actually that troublesome to get a yield of 5% by means of inventory investments?What’s a Dividend Aristocrat?There are methods to display for shares that pay dividends over 4% or 5%. But that doesn’t let you know the complete story. If an investor is seeking to get revenue, they wish to ensure that the revenue goes to be paid persistently each quarter, or 12 months, and that the dividend gained’t be minimize.One method to minimize by means of the noise, is to look for “dividend aristocrats.” This is a class of corporations that pay dividends, however are known as aristocrats, as a result of they’re amongst the elite few who’ve paid the dividend, uninterrupted for greater than a decade, AND who’ve additionally elevated the dividend payout throughout that point interval.This isn’t simple to do, particularly with occasions like the monetary disaster and the coronavirus pandemic throwing the economic system right into a tailspin.There are not any “certain issues” in investing, however the corporations who’ve paid, and grown, their dividends over the final 20 years have confirmed their dedication to their shareholders.Story continues5 Dividend Aristocrats Still Raising Their Payouts1. Walgreens Boots Alliance, Inc. WBAWalgreens Boots Alliance, identified beforehand earlier than the Boots merger, as merely Walgreens, has paid a dividend for 90 years. It has truly raised its dividend 47 consecutive years.Shares of Walgreens Boots Alliance are down 21% year-to-date. It’s low-cost, with a ahead P/E of simply 9.However, earnings are anticipated to fall 11.1% this fiscal 12 months.Walgreens Boots Alliance is paying a juicy dividend, at the moment yielding 4.7%.Should revenue buyers be placing Walgreens Boots Alliance on their brief record?2. T. Rowe Price Group, Inc. TROWT. Rowe Price Group is a worldwide funding administration firm. In Feb 2022, T. Rowe Price Group raised its dividend 11.1%. It has raised its dividend 36 consecutive years.Shares of T. Rowe Price Group have fallen 35% year-to-date. Earnings are anticipated to say no 38% in fiscal 2022.T. Rowe Price Group’s dividend is now yielding 3.6%.Should T. Rowe Price Group be in your brief record simply for that dividend?3. Illinois Tool Works ITWIllinois Tool Works, an industrial firm with 7 enterprise segments together with in auto, development, meals tools, welding, specialty merchandise, polymers and fluids and take a look at and administration and electronics.Illinois Tool Works has a long-term technique for a dividend pay out ratio of about 50%.Shares of Illinois Tool Works are down 6.9% year-to-date, out performing the S&P 500. It’s not low-cost, with a ahead P/E of 23.9.It pays a dividend yielding 2.3%.Is Illinois Tool Works too sizzling to deal with in 2022?4. Nu Skin Enterprises NUSNu Skin Enterprises is a mid-cap magnificence and wellness firm with a market cap of $1.9 billion. It’s one in every of the mid-cap corporations that has not solely paid, however has raised, its dividend for not less than 15 consecutive years.Shares of Nu Skin have fallen 22.6% year-to-date. It’s low-cost with a ahead P/E of simply 12.8.Nu Skin pays a dividend, at the moment yielding 4%, and had $185.4 million left on its inventory repurchase authorization at the finish of the final quarter.Is Nu Skin a hidden dividend aristocrat?5. Williams-Sonoma, Inc. WSMWilliams-Sonoma can be a mid-cap dividend aristocrat however it has a bigger market cap of $9.2 billion. In 2021, Williams-Sonoma raised its dividend 20% and this 12 months, it raised it one other 10%, together with a brand new $1.5 billion inventory repurchase authorization.Shares of Williams-Sonoma are down 18.6% year-to-date regardless that earnings are anticipated to be up 12.4% this fiscal 12 months.Williams-Sonoma pays a dividend yielding simply 2.3%.Is Williams-Sonoma’s dividend adequate for revenue buyers?What Else Do You Need to Know About Dividend Aristocrats? Listen to this week’s podcast to search out out.Want the newest suggestions from Zacks Investment Research? Today, you’ll be able to obtain 7 Best Stocks for the Next 30 Days. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report WilliamsSonoma, Inc. (WSM) : Free Stock Analysis Report Nu Skin Enterprises, Inc. (NUS) : Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report To learn this text on Zacks.com click on right here. Zacks Investment Research
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Looking for High Yields? Check the Dividend Aristocrats
