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Is This A Dividend Investors' Stock Market?

May 04, 2018 7:36 AM ETPM, D, PG, T, PEP114 Comments
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Dividend Diplomats

I hope that your stomach has felt the ups and downs this year. The S&P 500 is pretty much flat year to date. However, that doesn't mean there haven't been amazing opportunities out there. Opportunities that we haven't seen in so fricken long as dividend investors. However, with all of the events occurring this year - tax reform, tariffs, earnings being released for Q1, interest rates rising and inflation starting to creep (gas, groceries, etc.), is this the right time to jump in on dividend stock opportunities? I plan on talking about dividend stocks, where they are at today and comparing them to 5-year dividend yield averages. When doing this, it may showcase opportunities out there.

Dividend Stocks

Philip Morris (PM): PM's 5-year dividend yield, on average, is 4.40%. Further, the stock is down 22% year to date, through April 27th. The current dividend yield is 5.18%, or 78 basis points higher than its 5-year yield average. Further, the company is going onto its 10th year, since the spin-off with Altria (MO), of consecutive dividend increases. The growth rate has been small, and with tobacco seeing a squeeze on volume, that would be the expectation going forward. However, for a dividend investor, a >5% yield with 78 basis points higher yield than the historical one is very enticing.

Dominion (D): D is down 18% year to date. Heck, that's why I didn't buy the stock just once, but bought them twice. Its 5-year dividend yield, on average, is 3.70%. D being down 18% this year, has pushed its yield up to 5.03%. This represents a 133 basis points higher yield than the company's 5-year average. Holy crap! is all I have to say as a dividend investor. Further, the company has 14 consecutive dividend increases around its waist. Something tells me that will continue going forward.

This article was written by

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Two guys who love Investing, Dividends, Frugality, Passive Income & attempting to Reinvest Our Dividends to one day achieve Financial Freedom! Follow us on your journey towards a work-free life! We share EVERY ASPECT of our journey on our blog, social media, and YouTube Channel. Make sure to follow us so you don't miss an update. Updates include the stocks we are watching, buying, selling, and our overall thoughts about the the marketBlog: http://www.dividenddiplomats.comYouTube Channel: www.youtube.com/dividenddiplomatsTwitter: https://twitter.com/DvdndDiplomats

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