3 “All-In” Stocks For Instant Diversification (And Safe, Growing Dividends)
There are some "all-in" high-quality dividend growth stocks out there that can give you this. They provide some yield and the safe, growing passive dividend income we're all after. And they're "world beaters" that cater to nearly all aspects of their respective industries. These companies are so big and so diversified, they're almost like index funds all by themselves.
Today, I want to tell you about three all-in dividend growth stocks that can allow for both concentration and diversification.
The first all-in dividend growth stock I want to tell you about is Apple Inc. - stock ticker AAPL. We're talking about a market cap of $2.4 trillion dollars for Apple. That's bigger than the market cap of the entire ASX - the Australian Securities Exchange. It's tough to come up with superlatives that properly describe Apple. But it's kind of gone beyond a simple company at this point. Their annual revenue, which recently eclipsed $300 billion, is greater than the GDP of a lot of countries out there. If you were to buy the S&P 500, you'd be, to a large extent, buying Apple.
The S&P 500 is market-cap weighted. Apple is the largest stock in the entire index, comprising about 6% of it. Apple's yield of 0.6% isn't super impressive, but this is a dividend stock - and its dividend continues to grow like clockwork. So if you want an all-in stock that gives you broad product, service, and geographic diversification, which is almost like owning a fund in and of itself, and that gives you a safe, growing dividend that you can sleep well at night with, it's hard to think of anything that beats Apple.
The second all-in dividend growth stock I want to mention is Johnson & Johnson - stock ticker JNJ. Most healthcare companies do one thing well. Johnson & Johnson does multiple things. And they do all of them exceptionally well. This is a company with a market cap of nearly $450 billion. It's absolutely titanic. There's practically no element of healthcare they don't touch.
They sell products in over 170 countries. And the company estimates that they connect with more than a billion people per day. So you're touching a good chunk of the planet here. With its AAA-rated credit rating from Standard & Poor's, this company has a higher rating than the US government - a government that literally prints its own money. They've increased their dividend for 59 consecutive years. And the stock even yields a market-beating 2.5%, giving you income to go along with that diversification, quality, and growth. I've said it before. I'll say it again. This is my favorite dividend growth stock of all. It's just such a well-balanced business.
The third all-in dividend growth stock is Procter & Gamble Co. - stock ticker PG. This stock gives you one of the safest 2.5% yields you could possibly find. How safe? Well, they've not only paid a dividend for decades. They've increased this dividend every year for 65 consecutive years. If one were to own only Apple, Johnson & Johnson, and Procter & Gamble, they'd be exposed to and diversified across three huge swaths of the global economy. I wouldn’t recommend only owning a few stocks. But these are all-in stocks that can provide instantaneous quality and diversification, along with safe, growing dividends and some yield to boot. I regard all of them as some of the very best dividend growth stocks you could possibly have in your portfolio, be it a broadly diversified portfolio or not.
Video Length: 00:08:44
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