It’s a challenging time for yield-seeking traders and investors. The dividend yield on the S&P 500 Index dropped as little as 1.4%, the worst noted result in 150 years, except for the peak of the dot-com bubble two decades ago. Such a scenario isn’t attractive, especially in case investing makes a monthly income for you and you have to rely on it.
As we have seen, a wide range of top companies have cut or suspended their dividends during the past months in order to live through one of the harshest economic declines we have seen in our lifetime. Boeing (NYSE:BA), Royal Dutch Shell (NYSE:RDSa) and Disney (NYSE:DIS) are just some of them.
We should admit that payouts from S&P 500 companies are coming back slowly as the economy gradually rebounds, it’s still very important to be very careful when choosing your dividend stocks. Below we have given an example of three stable and reliable stocks from the income universe. Each is thought to be a relatively safe choice thanks to its sufficient cash reserves, healthy balance sheets and reasonable payout ratios.
- Yield: about 4.29%
- Payout: approximately $0.6276
- Yield: around 5%
- Payout: about $0.71
- Yield: approximately 3%
- Payout: almost $0.38