2 Stocks to Buy With Dividends Yielding More Than 3%
If you're an income investor, there are many dividend stocks available for you to choose from that can generate recurring cash flow for your portfolio. And while you don't want to take on too much risk by looking for high-yielding dividend stocks that pay 10% or more, you also shouldn't waste your time on stocks that pay less than the S&P 500 index average of about 2%.
Here are two stable, well-priced stocks paying more than 3% that you can buy today: Cardinal Health (NYSE: CAH) and Coca-Cola (NYSE: KO). With terrific track records for paying and increasing dividend payments, they're some of the safest dividend stocks out there right now.
Medical distribution company Cardinal Health currently pays its shareholders a quarterly dividend of $0.4859. At a share price of around $48, that means it's yielding slightly above 4% per year. On a $25,000 investment, you'd be earning approximately $1,000 per year in dividend income. Not only that, but Cardinal Health's a Dividend Aristocrat and it's increased its dividend payments for more than 30 years in a row. The most recent pay hike came earlier this year, with Cardinal Health bumping up its quarterly dividend by 1%. The company's raised its dividend by a total of 25.6% from five years ago when its quarterly payments were $0.3870. That averages out to a compounded annual growth rate (CAGR) of 4.7%.
Source Fool.com
