Stock Club

#301: The 6 Best Dividend Stocks to Buy


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This week, we’re heading to safer shores — trading moonshots for mailboxes — and bringing you Emmet and Mike’s favorite dividend stocks.

We’re growth investors at heart and would usually rather see smart R&D spending than dividend distributions. But for many investors, especially those approaching retirement, a few value stocks can be a smart addition to a portfolio.

Emmet walks us through why a company might start offering a dividend — and why it might not. The decision can come down to a mix of cash availability, tax laws, pressure from large shareholders, and a desire to stay in the market’s good graces over the long term.

He kicks things off with the Dividend Aristocrats (NOBL) ETF, an index of US companies that have increased their dividends for 25 consecutive years and meet certain size and liquidity requirements. Emmet calls it “the most solid investment in the world.”

He then revisits the pitch from recent Stock Club guest Porter Stansberry and makes the case for Altria Group Inc (MO). He finishes his list with Verizon (VZ), a wireless giant with a healthy moat and a 6%+ dividend. But it’s also staring down the looming threat of satellite internet providers.

Mike returns to familiar territory with Investor AB (STO: INVE-B), the “Swedish Berkshire Hathaway”, it's a holding company with stakes in public companies, medtech firms, and smaller private businesses. It’s a lovely way to snag a piece of the Swedish economy and is currently Mike’s largest position.

He then heads east with Tokio Marine (TYO: 8766), a Japanese insurance company riding the wave of the country’s stock market recovery. He shocks no one by pitching a stock that made last week’s portfolio as well: Waste Management (WM). At least this time, you get the reassurance that it’s also this month’s Stock of the Month.

We wrap up by checking in on Finance Minister Simon Harris’s recent comments about deemed disposal and the avenues available for investing in Ireland. With €170 billion sitting in Irish bank accounts, it’s clear that at least some of it could be put to work.

Psssst…. We don’t think you’ll want to miss this year’s Investicon. Grab your early bird tickets now: https://www.investicon.ie/

To celebrate our 300th episode, Stock of the Month is on sale for $149 for 2 years or $99 for one year. Grab your deal at https://www.mywallst.com/

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00:00 Intro

02:16 Dividend Stocks Setup

11:33 Why Dividends Stick

17:09 Modern Era Buybacks

21:34 Dividend Aristocrats ETF

25:46 Investor AB

29:45 Altria

34:33 Tokio Marine

37:58 Verizon

44:56 Waste Management

46:32 Irish Investing Law and Deemed Disposal


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