What are the best US dividend stocks for Australians?
The top dividend companies in the S&P500 offer yields of more than 10%.
Matt Leibowitz is the founder of share trading platform Stake and a guest contributor at Finder. The views and opinions expressed in this article (which may be subject to change without notice) are solely those of Matt's and do not necessarily reflect those of Finder and its employees.
Each month, I take us through what US stocks are trending among Australian investors and which ones our team at Stake is keeping a close eye on. Just remember, this isn't advice. Do your own research and talk to a professional if you need to.
This month's blog is all about that sweet quarterly cash packet some investors receive – dividends.
When Aussie investors think of dividends, they typically look to the ASX-listed blue-chip stocks. But there are plenty of high-yielding dividend stocks outside of Australia too, and Wall Street is prime for it.
Below, I'll look at some of the top dividend stocks listed in the US, including the highest yielding, the most traded and the best performing.
Also read: What are dividends and how do they work?
According to our data, the highest yielding company on the S&P500 is travel site TripAdvisor, followed by real estate trust Macerich, retailer Macy's, cloud networking firm CenturyLink and petrochemical manufacturer Occidental.
Highest yielding dividend stocks in the S&P500
| Company | Code | Yield |
|---|---|---|
| 1. TripAdvisor | TRIP | 12.02% |
| 2. Macerich | MAC | 11.2% |
| 3. Macy’s | M | 9.82% |
| 4. CenturyLink | CTL | 9.03% |
| 5. Occidental Petroleum | OXY | 8.12% |
The Dividend Aristocrats
The dividend investor's strategy is to create a steady income through companies that earn a solid profit. But not all dividend-paying stocks are alike.
Many of the highest yielding dividend stocks today took years to start paying income to shareholders. Other stocks have had a flat yield for decades or have even seen dividends drop off entirely as profits dwindle.
Introducing the Dividend Aristocrats – these are stocks that have increased their dividend payout for at least 25 consecutive years. This group includes names such as Coca-Cola (KO), Johnson & Johnson (JNJ) and McDonald’s (MCD). Sound enticing? As with most things, there’s an ETF for it! ProShares issued NOBL, an ETF tracking the 57 dividend aristocrats.
Or, if you'd prefer to invest directly in stocks, you can buy one of the following US dividend stocks that delivered outstanding performance for the month of November or check out the most traded US dividend stocks by Australians.
Best performing dividend stocks in November
| Company | Code | Performance |
|---|---|---|
| 1. Ubiquiti | UI | +55.1% |
| 2. Central Puerto | CEPU | +42.7% |
| 3. Chico’s | CHS | +39.1% |
| 4. Tronox | TROX | +35.5% |
| 5. TD Ameritrade | AMTD | +33.4% |
Most traded dividend stocks on Stake for November
| Company | Code | Yield |
|---|---|---|
| 1. Disney | DIS | 1.16% |
| 2. Apple | AAPL | 1.15% |
| 3. Microsoft | MSFT | 1.35% |
| 4. Nvidia | NDVA | 0.30% |
| 5. Nike | NKE | 1.05% |
Buffet's dividend strategy
A lot of the Dividend Aristocrats we spoke about above appear in the portfolio of one of the greatest investors of all time. In fact, Warren Buffet's Berkshire Hathaway (BRK.A) is on track to earn over US$4.5b in dividend income in 2019.
While the Berkshire strategy is largely built on dividend income, they do not pay a dividend themselves. In Buffett’s eyes, excess capital is best allocated by reinvesting back into a business. The titan of investing’s commitment to improvement after decades is inspiring.
What your generation is trading
Stepping away from dividends, I'll now point a light on one stock that's apparently sitting pretty in thousands of portfolios. And it's not a dividend-paying stock.
It seems Tesla's recent Cybertruck launch was enough to push Tesla right up into our most traded leaderboards across most age groups.
According to our list of the most traded stocks on Stake (both bought and sold) in November, 18 to 24 year olds were trading the exchange traded note UGAZ, the 25 - 64 age groups were trading Tesla and the 65+ group traded Boeing.
The most traded US stocks by age group
| Age group | Company | Performance |
|---|---|---|
| 18-24 | UGAZ (UGAZ) | -9.5% |
| 25-34 | Tesla (TSLA) | +39.9% |
| 35-44 | Tesla (TSLA) | +39.9% |
| 45-54 | Tesla (TSLA) | +39.9% |
| 55-64 | Tesla (TSLA) | +39.9% |
| 65+ | Boeing (BA) | +6.7% |
Notably, the only stock in this list that pays dividends is Boeing (2.24%).
Recent 52-week highs
While the stocks in the list below didn't make it on the most popular list among Aussie investors, these are the stocks that just hit one-year highs.
It’s pretty clear certain biotechs are hot right now.
| Company | Code | 12-month performance |
|---|---|---|
| 1. CRISPR Therapeutics | CRPS | 80.6% |
| 2. Eidos Therapeutics | EIDX | 58.7% |
| 3. Ardelyx | ARDX | 56.6% |
| 4. Epizyme | EPZM | 55.1% |
| 5. BeiGene | BGNE | 54.4% |
Don't forget, these are stocks that may suit my strategy and not yours. I have a stop loss planned and ready before every trade. These stocks may go down, up or nowhere. Take responsibility for your investments – that's the real joy of being in the market. The money comes from hard work and discipline, not from stock tips.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
