Best Dividend Stocks May 2021
The hallmark way I go about finding the best dividend stocks…the outliers, is by looking for quiet Big Money trading activity. Oftentimes, that can be institutional activity. I’ll go over why following the Big Money is so important in a bit. But, the 5 stocks I see as long-term dividend growth candidates are AAPL, BLK, LOW, AVGO, & GRMN.
Over decades, I’ve learned that the true tell on great stocks is that big money consistently finds its way into the best companies out there… especially dividend paying stocks. Some of the biggest returns ever have come from holding stocks for many years and reinvesting dividends.
I want the odds on my side when looking for the highest quality dividend stocks…and I own many of them.
So, let’s get into it.
Up first is Apple, Inc. (AAPL), which happens to be the largest company on planet earth. They are a technology firm with popular products like iPhones, iPads, & iTunes.
Let’s first start with the technical picture.
When deciding on a strong candidate for long-term dividend growth, I like to look for stocks seeing upward momentum:
1 month performance (+10.98%)
Historical Big Money buy signals
Below are the Big Money signals Apple has made since 2017. Green bars are showing that AAPL was likely being bought by an institution according to MAPsignals. Typically, the more Big Money signals, the stronger the stock:
Source: MAPsignals, End of day data sourced from Tiingo.com
On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, AAPL has a strong dividend history:
3-year dividend growth rate (+9.8%)
Current dividend per share = .205
Forward yield = .61%
3-year earnings growth rate (+13.26%)
Next up is BlackRock, Inc. (BLK), which is a leading asset manager company. They have a long dividend history and shares have been in an uptrend recently.
When deciding on a strong candidate for long-term dividend growth, it’s a good idea to look for many years of dividend increases.
Now let’s look at recent performance:
1 month performance (+7.98%)
Historical big money signals
Below are the big money signals that BlackRock has made since 2017. It’s clear the stock has seen green recently.
Source: MAPsignals, End of day data sourced from Tiingo.com
On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, BlackRock has a nice dividend history. Their earnings growth has been stellar as well:
3-year dividend growth rate (+13.2%)
Current dividend per share = 4.13
Forward yield = 2.03%
3-year earnings growth rate (+2.14%)
Next, I’m looking at Lowes Companies Inc. (LOW), which is a leading home improvements chain. They have a solid dividend history.
When deciding on a strong candidate for long-term dividend growth, recent performance in the shares is important:
1 month performance (+5.92%)
Recent Big Money signals
Below are the big money signals that Lowe’s has made since 2017. It’s clear the stock has been in a nice uptrend:
Source: MAPsignals, End of day data sourced from Tiingo.com
On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, LOW has a strong dividend history:
3-year dividend growth rate (+13.3%)
Current dividend per share = .60
Forward yield = 1.19%
3-year earnings growth rate (+34.66%)
Next, I’m looking at Broadcom, Inc. (AVGO), which is a leading semiconductor company. The shares have been on a tear this year.
When deciding on a strong candidate for long-term dividend growth, recent muted performance is not a bad thing:
1 month performance (-.16%)
Recent Big Money signals
Below are the Big Money signals that Broadcom has made since 2017.
Source: MAPsignals, End of day data sourced from Tiingo.com
On top of technicals, when deciding on the best dividend stock, let’s check up on the fundamentals. As you can see, Broadcom has a strong dividend history.
3-year dividend growth rate (+47.2%)
Current dividend per share = 3.60
Forward yield = 3.09%
3-year earnings growth rate (+174.18%)
Lastly, I’m looking at Garmin Ltd. (GRMN), which is a leading navigational company.
When deciding on a strong candidate for long-term dividend growth, I like to look for recent leaders:
1 month performance (+8.99%)
Historical Big Money signals
Below are the Big Money signals that Garmin has made since 2017.
Source: MAPsignals, End of day data sourced from Tiingo.com
On top of technicals, when deciding on the best dividend stock, you gotta see if the fundamental picture supports a long-term investment. Garmin has been a steady grower:
3-year dividend growth rate (+5.6%)
Current dividend per share = .67
Forward yield = 1.9%
3-year earnings growth rate (+13.09%)
The Bottom Line
AAPL, BLK, LOW, AVGO, & GRMN represent solid dividend choices. Given the strong historical dividend growth and Big Money signals, these stocks could be worth an extra look for a dividend investor.
Disclosure: the author holds long positions in personal and managed accounts in GRMN. He doesn’t hold positions in AAPL, BLK, LOW, & AVGO at the time of publication.
To learn more about the MAPsignals process, click here.
Disclaimer
This article was originally posted on FX Empire
