Growth stocks that deliver high dividend yields while outperforming the S&P 500 are very attractive to any investor. Here are the top five to invest in 2021.
Stocks of companies: Broadcom (AVGO), Texas Instruments (TXN), JPMorgan Chase (JPM), T. Rowe Price (TROW) and Eaton (ETN) may be considered the top five dividend stocks in 2021, as their dividend yield exceeds the dividend yield in 1.6% of the broad S&P 500.
Top 5 Dividend Stocks in 2021
The comparative table below shows the dividend yield (Yield) of the S&P 500 Index (SPY) and five stocks.
In addition, the gains in shares of Broadcom, Texas Instruments and Eaton over the past 12 months have exceeded the 24% gain in the S&P 500 (as of Tuesday’s close).
At the same time, the growth of shares of JPMorgan Chase and T. Rowe Price over the past six months by 54.8% and 19.9% exceeds the growth of 14.25% of the S&P 500 over the same period.
While these are not all factors when choosing a stock, both attractive payouts and rising stock prices play an important role in a successful investment. Below is a more detailed analysis of the shares listed.
Best Dividend Stocks
The semiconductor and enterprise software maker has increased its dividend for the past nine consecutive years, with a dividend growth rate of 75%.
Broadcom pays $ 14.40 per share in dividend on 2.9% yield.
Broadcom’s dividend stability ratio is 16 on a scale from zero (most stable) to 99 (most volatile) measured over the past five years.
In addition, Broadcom has grown its earnings per share (EPS) by 8% annually over the past three years and sales by 9% annually. Broadcom’s earnings per share have grown for the past four consecutive quarters, beating analysts’ expectations. Broadcom’s quarterly earnings and earnings statistics are available here.
Broadcom (AVGO) shares are up 61.8% and 43% in the past 12 and 6 months, respectively.
The chipmaker has boasted a growing dividend for 16 consecutive years. Texas Instruments first announced dividend payments in April 1962.
Texas Instruments has an annual dividend of $ 4.08 per share, a 2.3% yield. Dividend growth rate: 23%.
Texas Instruments shares are up 42.3% and 23.2% in the past 12 and 6 months, respectively.
Jp morgan chase
The largest US bank has paid dividends for over 20 consecutive years and increased dividends for 10 consecutive years.
JPMorgan Chase shares provide an annual dividend of $ 3.60 on a 2.4% yield. Dividend growth rate: 19%.
JPMorgan Chase quarterly earnings and earnings statistics for the last 2 years are available here
The energy management company first paid dividends in 1923 and has increased dividends for the past six consecutive years. Eaton shares have an annual dividend of $ 2.92, yield 2.3%, and dividend growth rate of approximately 7%.
T. Rowe Price Group
Investment firm T. Rowe Price paid its first dividend in 1986. T. Rowe Price has an annual dividend of $ 4.32 at a 2.7% yield. Dividend growth rate: 9%.
With dividend data and strong gains, Broadcom, Texas Instruments, Eaton, JPMorgan Chase and T. Rowe Price are among the best dividend stocks to date.
Outperforming the S&P 500 is a high bar that relatively few stocks have seen, especially given the volatility of equity markets over the past year.