5 Companies that Pay Dividends Beating the Market [46% Average Return]
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5 Companies that Pay Dividends Beating the Market [46% Average Return]



not only is our dividend portfolio beating the market but five of the stocks have nearly tripled the return on the sp500 in this video I'll reveal the power behind these dividend-paying companies why shares are surging and how you can use it to pick dividend stocks for your portfolio we're talking the best companies that pay dividends today on let's talk money beat day come on make your money work freed in the financial future you deserve talk money josepho with the let's talk money channel here on youtube i want to send a special shout out to everyone in the community thank you for taking a part of your day to be here if you're not part of that community yet just click that little red subscribe button it's free and you'll never miss an episode now our 2019 dividend stocks challenge just past that six month mark and I'm still amazed at how well this portfolio is doing look at some of these stocks in the portfolio Hanes brands 80% return in six months General Mills 44% bank Ock 41 percent return now five of these seven dividend stocks in the portfolio are beating the stock market which is even more amazing when you consider the sp500 just had its best six months since 1938 now I'm gonna update you on the entire portfolio of dividend stocks then we'll dig a little bit deeper into those five stocks averaging a forty six percent return I'm gonna dissect why these dividend-paying companies are doing so well and how you can use that to pick better stocks for your portfolio now I'm putting this video into our 2019 stock market challenge playlist so if you haven't seen those other updates yet check those out along with some of the biggest investing channels here on YouTube I created a thousand dollar portfolio in January and I'm gonna be tracking it all year long to track my portfolio of dividend stocks I'm investing a thousand dollars on m1 finance a No Fee platform that lets you pick your stocks and automatically invest any new deposits across the entire group and I'll leave a link to the playlist of videos below in the description click through to see how we set up that portfolio and how I picked these dividend stocks before we get started I do want to give a quick shout out to two more channels in the grow your dough challenge a Sarah the budget girl recently updated her progress using a Robo advisor for her thousand dollars I love this idea because Sarah is all about frugality and budgeting but but maybe doesn't want to spend a lot of time on investing so that Robo advisor idea is a perfect solution for her Rebecca on the squint ilion's channel is invest across six platforms including some really popular ones here like acorns and Robin Hood so a great way to look at how she's using these different platforms I'll leave a link in the video description below to their latest videos in the challenge so make sure you check those up so here's our dividend portfolio through June with a twenty six percent returns so far this year we had that rough patch in May though the portfolio lost much less than the market because of that repositioning we did late April into those REITs utilities and bonds now what's been really amazing though is that even though we have some of those safety plays that protected our money the portfolio has rebounded even more than the market since those May lows and a lot of this has to do with those five dividend paying stocks beating the market that we'll talk about later so here's our portfolio again and we'll cover those first five in detail so I don't want to touch them here in the update man it's hard not to love Hanes brand here with an 80% return scrolling down past the five that we'll talk about we see first here the Vanguard real estate fund took her vnq and this one was one of those real saviors during that may sell-off here we have a diversified real estate fund that pays a 4% dividend yield and has jumped more than 20% in six months a lot of the out performance here is the fact that interest rates have come down hard over the last year so we have a lot of those rate sensitive investments like real estate utilities and bonds doing really well now this is actually should be a huge warning sign for investors but nobody is paying attention since May it's been those rate sensitive safety sectors that have been leading the market higher not the economic growth names like tech and financials that you would expect this is a warning sign because if you look at the reason these sectors are outperforming falling interest rates it's because the economy isn't looking so hot now we've got lower growth corporate profits that will likely meet the definition of an earnings recession in the third quarter and yet the stock market is notching record highs every day there is a disconnect between investor sentiment and reality and that's where things usually turn really bad really quick but let's get back to our portfolio because I want to get to highlighting those first five stocks to help you make better investment decisions we've got the iShares China fund this ticker FXI that just started rebounding but I think still has some great long-term value for investors this Alerian MLP fund of energy assets now ticker a MLP it's too huge hit on those lower oil prices but remember this fund pays an 8% dividend so you're collecting that dividend and oil prices of some solid support with OPEC just announcing that they're going to extend those production cuts for another nine months the iShares MSCI european financials fund ticker EU FN is lagged for a lot of the year but adds some great international diversification especially when those rates are controlling so much of the direction of the market so this one is going to move with those European rates and financials rather than a lot of our other investments tied to US rates finally here is the blv bond fund and the xlu utilities fund that we put on just before May now these didn't do much for us in the last month but a 6% return in just two months on a bond fund is huge and I expect both of these to do well for the rest of the year as both protection from weakness in the stock market and upside potential as the Fed cuts rates and I know it was a quick update this month because I want to get to those five stocks that we're going to talk about but click through to watch those other videos in our dividend stocks challenge to see exactly how we put this portfolio together now I've actually been thinking a lot about 2020 lately our 2019 dividend portfolio is going to be the hard to beat so I'm looking for ideas or investing themes for our 2020 portfolio challenge so what do you think we should cover I'll be investing another thousand dollars an hour into a portfolio but should I stick with dividends maybe try growth investing or value stocks I spent so much time working venture capital part of me wants to do like an acquisitions target portfolio but but let me know in the comments below what investment ideas should I use for our 2020 stock market challenge so we see the overall portfolio here beating the sp500 with an 18% return so far in 2019 we also see the Vanguard dividend depreciation fund ticker Vig which I'm using as a benchmark now the portfolio was just running away beating the market by seven and a half percent in the first six months of the year I wanted to dig a little deeper this month to see why some of those standards are really zooming past the rest of the market just these tops five stocks are sporting an average 46% return in the last six months now first you have Hannes Brandt's ticker hbi with an 80 percent return with most of that in the first quarter now one of the themes you're going to see if you'd look back into those first few videos in that dividend series this deep value and this has a lot to do with these 5 stocks outperforming all 5 of these stocks and especially Hannes were trading a deep discounts on price to sales and cashflow basis the problem though when you're looking at these deep value stocks is always going to be timing you see Hanes brands had been falling since 2015 before it started rebounding this year and it's still down 50% over that four year period what made this year different though is that it had a catalyst something that could turn investor sentiment and get the shares Verizon again now I found those catalysts in the active where growth rates and the direct sales numbers while looking over the company's financials back in December activewear is growing at twice the rate of the broader apparel category and the company has seen stronger profitability as it shifts more sales online and I knew it wouldn't be long before the rest of the market saw this and picked up the shares back off those bargain break bargain basement prices the moral here is that if you're gonna be looking for value it can't just be about low price to earnings ratio there has to be a catalyst to turn that investor sentiment around now the gains on General Mills ticker GIS have been smoother with a slow and steady all the way to May and almost a forty four percent return this year in February I pointed out the company's acquisition of pet food brand Blue Buffalo is a big boost to that top-line sales number a US pet food sales have been growing by five percent annually over the past decade way above other food cells so this acquisition was a game changer for General Mills not only was the company able to tack on that big sales growth something that's unheard of these days and in that packaged food space but management has been able to drive higher profitability with a cost-cutting program the combination there is lethal so I want to repeat it a game-changing acquisition that increases sales and an operating efficiency program that cuts costs you see usually when a company makes that big acquisition buying another big company to increase its sales costs balloon and profitability falls so sales might increase but earnings don't increase by as much because of those lower profitability margins but what we had here was higher sales plus higher profit margins so a big win for General Mills and something you always want to watch for responsible acquisitions that increase sales but not at the expense of profits now Banco ZK is another stock that gave us almost all our gains in that first quarter and I actually cut it back from ten percent of the portfolio to five percent in February now deposit gathering banks had a tough go lately on those lower long-term rates but what most investors don't know about Ock is that it has a huge real estate loan business as well it has that traditional community bank feel but the booming market for real estate loans has really been the push for this one when we added this one it was trading at a price to book value of just 0.76 but has come up to 0.99 times Book value right now I still think there's some long-term growth especially as the bank expands into the Nashville market but that deep value has come out of the shares ConAgra Barnes is one we added in February just before the huge pop in the shares on a 34% return for the year this is another example of an acquisition driving sales and management forcing profitability in ConAgra's case it wasn't getting much credit for that 2018 Pinnacle acquisition the deal had just closed in October and investors were selling the shares in November and December over disappointing results now a lot of the problem was centered around pinnacles distribution business so I saw that it wasn't necessarily a problem that management couldn't fix they went extremely conservative on the profit outlook and ended up surprising on the upside in March you have got to play the contrary and sometimes worth finding the clues of the rest of the market is missing investor cinnamon has herd mentality and a lot of times its gonna push a stock lower when the reasons for upside are staring you right in the face China Life Insurance is another one that took a huge hit on that trade war but it's still a 32% for the year now I will admit my pick on China life wasn't for a short-term gain which doesn't make much sense for a one-year stock market challenge but I wanted to put this one on your radar like we pointed out in January China's economy is growing at six plus percent a year three times the growth here in the United States the trade war has hurt but China's government has a lot of ammunition to juice that economy honestly folks you need exposure to Chinese stocks if you're gonna be investing over the next decades to come within that theme China life controls a fifth of the life insurance market that's and that's 1.4 billion people in a country where life insurance penetration is still relatively low now the dividend has been volatile on this one and last month's payment was lower to protect cash flow but I am expecting the shares to strengthen on this one and they may make a special dividend if the economic growth rebounds after the trade war I'm linking here to a new dividend portfolio I just created if you your dividend stocks to pay your bills click on the video to the right 7 dividend stocks that are gonna put cash in your pocket every single month don't forget to join the list talk money community by tapping that subscribe button and clicking the bell notification

About Ralph Robinson

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27 thoughts on “5 Companies that Pay Dividends Beating the Market [46% Average Return]

  1. 👉 Core Portfolio Update – I just created a dividend portfolio of 7 stocks that every investor should own! Dividend income portfolio that will pay you every month 😲 Check it out here –> https://youtu.be/Rif_AG6RfMs

  2. Good question, I sold my RICK stock ( Gentlemen club stock )because it paid me 3 cent dividend. Would you kept this or sold it?

  3. Just cause a stock is up 40% doesn't mean you're gunna get another 40% on investing in these stocks. This video is misleading. Most of these stocks pay between 6 to 10 % dividends.

  4. Hi Joseph! Thank you so much for the shout out.  ( ゚ヮ゚)/
    I'll be posting my next Grow Your Dough Challenge update on my accounts in mid-July. Hoping my broken video camera will be back from the repair shop by then, otherwise will have to make do with taking video on my phone and some extra computer screen recording. For next year, I'm thinking about venturing into areas I don't normally invest in (emerging markets, IPOs, crypto, aggressive growth) and see how it goes and also try a couple other investing platforms.
    It has been interesting playing multiple hands in the Grow Your Dough challenge. One stock you mentioned in your video, General Mills (GIS), I have in my E*Trade account, and it is carrying the gains there, up 22.3% since I bought it. I also added a late entry 7th account!

  5. Up the game. Do a separate value and growth portfolio to compare the 2 in the same year side by side. Would be great to see a comparison and give new investors (me) a better visual idea of what may work for their portfolio. Love the channel and have gained so much knowledge in such a short time from you. Thank you 100%. How about that for a return. Lol.

  6. Hi mr Joseph I already open a Roth IRA account with a hand full of stocks and the 5 vanguard index ETF fund that way you recommend it as a core satellite on my M1 finance . My question is that I would like to open a traditional IRA account as will on my m1 finance but I would like to put only the real estate vanguard index ETF fund and the rest high dividen real estate stocks only . Only real estate stocks and the real estate fund . Did you recommend it for me to do it or is a little bit too risky just having only real estate stocks .? Did you recommend to put any other stocks and ETF to mix it ? Or is good just to put my real estate stocks only and the real estate ETF fund? Please I take your advice very seriously thank you so much Carlos Rosas. Looking forward to hear from you soon mr Joseph. You once said you have a traditional IRA account yourself my question is did you only have real estate holdings? Or is it mix ?

  7. JOE!!!! You have been a great help not just in suggesting stocks, but also teaching me the industry as a whole. Not so that I just imitate, but that I learn and make my portfolio my own as well. Think of it as the give a person a fish, and teach a person to fish idea. You have helped given me a broader understanding. Some channels just say "INVEST IN DIS BECAUS OMGZ FAKE MEEEAT😱"
    But you get into the details of why or why not. I'm hoping to build a portfolio that I can retire on comfortably one day and I thank you for pointing me in the right direction.

  8. I am a new owner of GIS dollar cost averaging in November or December. After some research months with the Blue Buffalo acquisition, I really felt is was undervalued. I am up 32.5 % and not including all the dividends. I always hold stocks, but I won't be buying this again until we see the next weakness.

  9. Europe (Euronext AMS, for example) would be awesome, since many of us live across the ocean and there's not many YouTubers covering our markets well.

  10. Utillities should play a part in your next portfolio, maybe SO ticker? Im almost sure thats an utillity, then maybe FUN ticker because partly of the name and if I remember right its debt level is okay and has some sort of dividend … Then some Apartment REITs because csshflo and dependability … Cant name any ticker from the top of my head … And thats all I can think of.

  11. Hi! I hope you had a great holiday! Love these updates on the portfolio, its really on fire! 🙂 I´d love a dividend portfolio for the 2020 challenge. I´d also love if you´d pair it up with your business cycle reasoning. I belive, in the end, most of us are in the market to make money and right now it seems to be in the dividend stocks. As the economy changes, it´d be perfect to see the portfolio change with it (maybe for 2021 or 2022 challenges). That would really highlight the understanding that portfolios change when the economy changes. For example, here in Sweden we have several high quality industrial companies going for really cheap (Volvo for instance), but the time to invest in those might not be right now, unless going for the long run.

    For myself, I get lost in the metrics of companies. This video highlights that there needs to be more to it than the company just looking cheap. So videos on where to look for this information would be really helpful 🙂 Thank you again for your channel, I´ve learned a lot in my short time here.

    Best regards // Mikael from Sweden

  12. For 2020 I think you should do a mixed stock portfolio. Growth and undervalued dividend stock portfolio. Basically, the 10 stocks you like most period. 🙂

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