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The US stock market is significantly larger than any other in size, attractiveness, and level of profitability. A significant role in the interest of potential investors is played by the so-called dividend stocks of the United States. Their purchase provides an opportunity to receive dividends monthly, quarterly, or annually, for the payment of which a significant part of the profits received by companies is directed.
How to choose the most dividend stocks in the United States?
Given a large number of participants in the US stock market, choosing the best US dividend stocks becomes a daunting task. Its solution provides for large-scale financial analysis. An alternative option is to study thematic sites dedicated to the features of the US investment market and the securities presented on it. Including – in terms of the regularity and amount of dividends paid. Below are a few of the top U.S. dividend stocks that deserve particularly close attention in terms of profitable long-term investing.
№1. Phillips 66 (PSXP)
The popular name refers to a major energy company that is based in Texas. The main areas of work are oil refining and the sale of petroleum products. The structure of the corporation includes 15 relatively large oil refineries, which are capable of processing more than 2.2 million barrels of energy per day.
A characteristic feature of the company’s work is very high profitability, reaching 88.53%. The result is a quarterly payment of dividends in a serious amount – $ 0.88 per share. The current value of the security is 26.61, and therefore the dividend yield is equal to a very impressive figure of 13.15%.
№2. Western Midstream (WES)
A company from Canada, which is engaged in the transportation of oil and petroleum products. It was listed on the New York Stock Exchange. Despite the drop in oil demand that occurred in 2020, the company paid a dividend of $ 0.311 per share. This is exactly 2 times less than in 2019. The current share price is $13.53. Therefore, the value of the dividend yield indicator is a considerable 11.49%. This state of affairs allows the company to take second place in this rating.
№3. Oneok (OKE)
A large company that is engaged in the production, processing, and transportation of gas. Unlike most of the participants of the American market, it is focused on export activities. Despite the not the most favorable situation in the energy market – both the world as a whole and the American in particular – Oneok manages to show good results.
The company’s current valuation is $32.96. Dividends are paid each quarter in the amount of $0.94 per share. This gives a dividend yield of 11.35% and third place at the top of the US stock market. An important advantage of the company is the good prospects associated with a sharp increase in prices for “blue” fuel, which occurred in the first half of this year both in Europe and in Asia.
№4. Lumen Technologies (LUMN)
Until recently, it was called CenturyLink. It ranks third in the United States in terms of the volume of telecommunications services provided. Second only to Verizon and AT&T. Actively engaged in the provision of communication services, security, cloud solutions, and other similar works.
The rules of the corporation provide for the quarterly payment of dividends. With a share price of $ 10.04, the value of the latter reaches $ 0.25 per share. A simple calculation shows the value of the dividend yield at the level of 9.96%.
№5. Telefonica (TEF)
The largest telecommunications corporation in the world by the number of customers. It is based in Spain, but its ADR or American depositary receipts are traded on the New York Stock Exchange. A characteristic feature of the company’s work is a strong range of financial results. Its consequence is a periodic change in the number of dividends.
The corporation plans to make two payments during 2021 in the amount of $ 0.2 per share, the current value of which varies around $ 4.07. This gives a dividend yield of 9.61% and the fifth place of the rating.
№6. Exxon Mobile (XOM)
One of the leaders of the world oil market, which does not need an additional introduction. According to the results of 2020, the company showed very serious losses of $ 2.6 billion, which were the result of the fall in prices for oil and petroleum products. The logical consequence of this development was the decline in the capitalization of Exxon Mobile – the share price fell from $ 70 to $ 37.
The difficult financial situation of the corporation did not cause the cancellation of dividends. Payments continued on a quarterly basis of $0.87 per share. Thus, the dividend yield reached the level of 9.42%, which allowed the company to take 6th place of the American top. Additional investment attractiveness to Exxon Mobile shares is given by the clearly understated current quote of the security, which will certainly show a positive trend in the very near future.
№7. Altria Group (MO)
The company spun off from tobacco giant Philip Morris. Today itself is one of the largest participants in this segment of the market. Despite the constant impact from fans of a healthy lifestyle and a large-scale anti-tobacco campaign, it continues to maintain a noticeable position.
Including increasing the investment attractiveness of own securities. The company regularly pays dividends. The last time was in September 2020 at $0.86 per share. The current quotation of Altria Group securities is $39.94, and therefore the dividend yield is 8.61-8.8% per annum.
№8. TC Pipelines (TCP)
Another representative of the fuel and energy sector of the US economy. It is engaged in the processing and transportation of gas. Shows stable results and experiences industry-wide problems associated with falling prices due to a sharp decline in demand as a result of the coronavirus pandemic.
Over the past year, there has been a correction in the cost of natural gas. This allowed us to pay a dividend of $ 0.65 per share. This, combined with the security’s current quotes of $30.54, yields a dividend yield of 8.51% per year.
№9. Pembina Pipeline (PBA)
The largest of the oil and gas carriers in Canada. A characteristic feature of activity in the market was the active absorption of competitors. Due to this, both the capitalization and the debt burden of the corporation have increased significantly.
The rules of the Pembina Pipeline provide for the distribution of dividends between shareholders on a monthly schedule. The amount of payment is $ 0.14-$ 0.16 per month and, accordingly, $ 1.68-1.92 per year. Current quotes of the security are at the level of $24.27, which gives a dividend yield of 7.92% per annum.
Buying shares of Pembina Pipeline requires care. The ticker of the company on the New York Stock Exchange looks like this: PBA, and on the Toronto Stock Exchange in a different way: PPL. Therefore, you need to execute the transaction very carefully, so as not to confuse anything and not to buy securities of a completely different company.
№10. The Williams Companies (WMB)
A large fuel and energy company from the United States, which is based in Oklahoma. It is engaged in the extraction of oil and gas with subsequent processing into various petroleum products, including gasoline, diesel, kerosene, as well as electrical energy. One of the main areas of work is the sale of automobile fuel of its own production through an extensive network of gas stations.
Dividends are paid on a quarterly schedule. The last time the payment amount reached $0.40 per share. Current quotes of the security are at the level of about $ 20.34, which allows to provide a dividend yield of 7.87% and close the top ten of the rating of the American stock market.
Summary
A characteristic feature of the US economy is the presence of a large number of companies, large on a global scale. Many of them pursue an active policy in terms of paying dividends, which is a consequence of the desire to attract as much investment as possible. This approach will show effectiveness in practice, especially during the adoption of serious restrictive measures to combat the coronavirus.
It is important to note: not all companies with high dividend yields are included in the above rating. Their number is very large and constantly growing, which clearly demonstrates the restoration of positive dynamics characteristic of the US stock market in 2021. Therefore, it continues to be one of the most attractive areas of investment for potential investors from around the world.
