Market turbulence got you thinking about income? Here’s the thing — dividend stocks that actually grow their payouts tend to hold up better when things get shaky.
UnitedHealth Group (UNH) has taken a 36% hit this year due to DOJ probes, but here’s why it might matter: aging U.S. population needs healthcare no matter what. Warren Buffett’s Berkshire is quietly adding shares. Current yield sits at 2.73%, but factor in buybacks and you’re looking at 5.75% total shareholder return.
Bank of America (BAC) — another Berkshire holding — offers 2.15% yield. The real upside? Wealth management and brokerage divisions are growing fast, less dependent on interest rates. Dividend went from $0.20 (2015) → $0.72 (2020) → $1.06 recently. That’s a solid track record.
Lennar (LEN), the homebuilder, could benefit big if rates keep falling. They’re cutting costs through economies of scale. Q3 showed 17,000 homes backlog worth $6.6B, 12% YoY order growth, plus $507M in buybacks. Yield: 1.7%, but stock repurchases sweeten the deal.
VYMI (Vanguard International High Dividend ETF) — diversified across borders with 3.9% yield. Top holdings include HSBC, Novartis, Nestlé. 5-year average return: 14% annually.
Heads up: FMC stock looks tempting at 17% yield, but it’s a trap. Stock crashed 73% YTD after earnings miss, and they slashed dividends by 92% (from $0.58 to $0.08 quarterly). That bloated yield will crater next payout.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
4 Solid Dividend Stocks Worth Your Attention (Plus One Red Flag)
Market turbulence got you thinking about income? Here’s the thing — dividend stocks that actually grow their payouts tend to hold up better when things get shaky.
UnitedHealth Group (UNH) has taken a 36% hit this year due to DOJ probes, but here’s why it might matter: aging U.S. population needs healthcare no matter what. Warren Buffett’s Berkshire is quietly adding shares. Current yield sits at 2.73%, but factor in buybacks and you’re looking at 5.75% total shareholder return.
Bank of America (BAC) — another Berkshire holding — offers 2.15% yield. The real upside? Wealth management and brokerage divisions are growing fast, less dependent on interest rates. Dividend went from $0.20 (2015) → $0.72 (2020) → $1.06 recently. That’s a solid track record.
Lennar (LEN), the homebuilder, could benefit big if rates keep falling. They’re cutting costs through economies of scale. Q3 showed 17,000 homes backlog worth $6.6B, 12% YoY order growth, plus $507M in buybacks. Yield: 1.7%, but stock repurchases sweeten the deal.
VYMI (Vanguard International High Dividend ETF) — diversified across borders with 3.9% yield. Top holdings include HSBC, Novartis, Nestlé. 5-year average return: 14% annually.
Heads up: FMC stock looks tempting at 17% yield, but it’s a trap. Stock crashed 73% YTD after earnings miss, and they slashed dividends by 92% (from $0.58 to $0.08 quarterly). That bloated yield will crater next payout.