Best dividend stocks

MaxiRobriguez

AnotherJoe said:

1980 just called and asked for its investment strategy back. 

Forget dividends look for overall growth as a mixture of both.

Dividend payers play a role in a balanced portfolio for me still. The 'style' will come back into preference at some point in the future when growth stocks start to under deliver on the growth promised and the relative security of a steady 5% income from a solid, cash generative business will feel like a lightbulb moment to some. 

OP: My current favourite dividend payer is Unilever. The yield is relatively low at 3% but the balance sheet is strong and revenue is likely to continue rising in the forthcoming years, so the payout is pretty sound. I also like MnG as a bit more of a riskier punt. The yield is 9%, the fundamental pricing of the business seems low and it has paid out once after COVID hit already, but it the dividend is much more at risk of a cut than something like Unilever. 

Overall agree with the others though, don't seek yield and forget about growth. A balanced portfolio to cover all eventualities will likely be more efficient and help you sleep better at night not constantly thinking "what if". 

DiggerUK

Type45, at least 60% of companies have cancelled or suspended recent dividend payments. I suspect it is because they are finding it difficult to service debts and costs with income collapsing, even cheap leverage has to be repaid.
High dividend payers are thin on the ground and will possibly get thinner going forward.

As a fan of gold, I am always tickled when the usual suspects denigrate gold because "it pays no dividends."  Yet here we have the selfsame 'no dividend shamers' telling you a lack of dividend is quite normal and urging you instead to go for "capital growth" "high yield" future growth potential" "overall growth" and "growth stocks." Something that gold does quite nicely thank you.

I'd say you should look at putting some Gold backed ETF/ETC certificates in your S&S ISA, not go on a unicorn hunt..._

MaxiRobriguez

I would advise you ignore people who "know" their investment style is right and others are wrong.

Holding a small proportion of gold in a portfolio for diversification is fine - I currently do myself, but asserting it is a substitute for equity to others who may not know any better is not OK.

Large gold allocations comes with significant chances of sustained capital losses. 

Type_45

bowlhead99 said:

Type_45 said:

Hi all,
I'm a long time investor in VLS60 (acc) within an ISA.

But I'm now thinking of also investing in dividend-paying stocks (again, within my ISA).

Any thoughts on the best dividend stocks?

Dividend paying investments probably have a lower propensity for capital growth than investments which internally reinvest the capital in their portfolio of business opportunities rather than paying it out.

My higher-paying investments include LLPC, RAVP, THRL, NWBD, HICL, INPP, BBOX, TRIG, BP.A, GSF, ELLA, STAC, and even the odd non-paying share that's a punt for the future such as RE.B.  I added to most of them when share prices took a tumble earlier this year. However, a number of them are preference shares rather than equity and the prices of those will more likely fall rather than rise over the longer term, even if the yield is good.

I do have some shares or funds paying more moderate levels of income (e.g. Unilever paid over 140p for the last year, which is about 3% of its current share price) but you may find that level of dividend somewhat mundane. The 'best' dividend stock for you likely depends on whether you are looking for income at the cost of most of the growth potential, or a more moderate income potential in addition to growth potential, or a, non-zero but small income and mostly growth potential, and whether you are willing to overconcentrate your portfolio mix in certain industries or types of financial instrument to grind out a result.

Most people, self included, are looking for a blend of returns from a broad portfolio. If you have been getting your broad portfolio exposure from VLS60, which is not known for a particularly high dividend yield, is there a particular reason why you now want to chase dividend yield?

Thank you very much for that. In answer to your question at the end of your post, the reason I'm looking at dividend stocks is because I've been following people on social media who are into them. And it's made me want to have a dabble. 
I don't intend on replacing, or even reducing, my existing VLS60. I would intend instead to use the next tranche of my investment money to buy something other than more VLS60, and instead give dividend-paying stocks a go. I've also thought about gold and Tesla (although Tesla may be a little like bitcoin in that it's a bit of a bubble and I have probably missed the boat on the biggest gains. (I am aware that Tesla is not a dividend paying stock, and neither would gold be).

AnotherJoe

Type_45 said:

bowlhead99 said:

Type_45 said:

Hi all,
I'm a long time investor in VLS60 (acc) within an ISA.

But I'm now thinking of also investing in dividend-paying stocks (again, within my ISA).

Any thoughts on the best dividend stocks?

Dividend paying investments probably have a lower propensity for capital growth than investments which internally reinvest the capital in their portfolio of business opportunities rather than paying it out.

My higher-paying investments include LLPC, RAVP, THRL, NWBD, HICL, INPP, BBOX, TRIG, BP.A, GSF, ELLA, STAC, and even the odd non-paying share that's a punt for the future such as RE.B.  I added to most of them when share prices took a tumble earlier this year. However, a number of them are preference shares rather than equity and the prices of those will more likely fall rather than rise over the longer term, even if the yield is good.

I do have some shares or funds paying more moderate levels of income (e.g. Unilever paid over 140p for the last year, which is about 3% of its current share price) but you may find that level of dividend somewhat mundane. The 'best' dividend stock for you likely depends on whether you are looking for income at the cost of most of the growth potential, or a more moderate income potential in addition to growth potential, or a, non-zero but small income and mostly growth potential, and whether you are willing to overconcentrate your portfolio mix in certain industries or types of financial instrument to grind out a result.

Most people, self included, are looking for a blend of returns from a broad portfolio. If you have been getting your broad portfolio exposure from VLS60, which is not known for a particularly high dividend yield, is there a particular reason why you now want to chase dividend yield?

Thank you very much for that. In answer to your question at the end of your post, the reason I'm looking at dividend stocks is because I've been following people on social media who are into them. And it's made me want to have a dabble. 
I don't intend on replacing, or even reducing, my existing VLS60. I would intend instead to use the next tranche of my investment money to buy something other than more VLS60, and instead give dividend-paying stocks a go. I've also thought about gold and Tesla (although Tesla may be a little like bitcoin in that it's a bit of a bubble and I have probably missed the boat on the biggest gains. (I am aware that Tesla is not a dividend paying stock, and neither would gold be).

And what do those people know? 

Type_45

AnotherJoe said:

Type_45 said:

bowlhead99 said:

Type_45 said:

Hi all,
I'm a long time investor in VLS60 (acc) within an ISA.

But I'm now thinking of also investing in dividend-paying stocks (again, within my ISA).

Any thoughts on the best dividend stocks?

Dividend paying investments probably have a lower propensity for capital growth than investments which internally reinvest the capital in their portfolio of business opportunities rather than paying it out.

My higher-paying investments include LLPC, RAVP, THRL, NWBD, HICL, INPP, BBOX, TRIG, BP.A, GSF, ELLA, STAC, and even the odd non-paying share that's a punt for the future such as RE.B.  I added to most of them when share prices took a tumble earlier this year. However, a number of them are preference shares rather than equity and the prices of those will more likely fall rather than rise over the longer term, even if the yield is good.

I do have some shares or funds paying more moderate levels of income (e.g. Unilever paid over 140p for the last year, which is about 3% of its current share price) but you may find that level of dividend somewhat mundane. The 'best' dividend stock for you likely depends on whether you are looking for income at the cost of most of the growth potential, or a more moderate income potential in addition to growth potential, or a, non-zero but small income and mostly growth potential, and whether you are willing to overconcentrate your portfolio mix in certain industries or types of financial instrument to grind out a result.

Most people, self included, are looking for a blend of returns from a broad portfolio. If you have been getting your broad portfolio exposure from VLS60, which is not known for a particularly high dividend yield, is there a particular reason why you now want to chase dividend yield?

Thank you very much for that. In answer to your question at the end of your post, the reason I'm looking at dividend stocks is because I've been following people on social media who are into them. And it's made me want to have a dabble. 
I don't intend on replacing, or even reducing, my existing VLS60. I would intend instead to use the next tranche of my investment money to buy something other than more VLS60, and instead give dividend-paying stocks a go. I've also thought about gold and Tesla (although Tesla may be a little like bitcoin in that it's a bit of a bubble and I have probably missed the boat on the biggest gains. (I am aware that Tesla is not a dividend paying stock, and neither would gold be).

And what do those people know? 

Possibly not a lot, but they seem quite convinced! 

Most of my new money I invest in my ISA will simply add to my VLS60 (acc). The dividend stocks, Tesla, gold will only be a small part of my investment.

AnotherJoe

Type_45 said:

AnotherJoe said:

Type_45 said:

bowlhead99 said:

Type_45 said:

Hi all,
I'm a long time investor in VLS60 (acc) within an ISA.

But I'm now thinking of also investing in dividend-paying stocks (again, within my ISA).

Any thoughts on the best dividend stocks?

Dividend paying investments probably have a lower propensity for capital growth than investments which internally reinvest the capital in their portfolio of business opportunities rather than paying it out.

My higher-paying investments include LLPC, RAVP, THRL, NWBD, HICL, INPP, BBOX, TRIG, BP.A, GSF, ELLA, STAC, and even the odd non-paying share that's a punt for the future such as RE.B.  I added to most of them when share prices took a tumble earlier this year. However, a number of them are preference shares rather than equity and the prices of those will more likely fall rather than rise over the longer term, even if the yield is good.

I do have some shares or funds paying more moderate levels of income (e.g. Unilever paid over 140p for the last year, which is about 3% of its current share price) but you may find that level of dividend somewhat mundane. The 'best' dividend stock for you likely depends on whether you are looking for income at the cost of most of the growth potential, or a more moderate income potential in addition to growth potential, or a, non-zero but small income and mostly growth potential, and whether you are willing to overconcentrate your portfolio mix in certain industries or types of financial instrument to grind out a result.

Most people, self included, are looking for a blend of returns from a broad portfolio. If you have been getting your broad portfolio exposure from VLS60, which is not known for a particularly high dividend yield, is there a particular reason why you now want to chase dividend yield?

Thank you very much for that. In answer to your question at the end of your post, the reason I'm looking at dividend stocks is because I've been following people on social media who are into them. And it's made me want to have a dabble. 
I don't intend on replacing, or even reducing, my existing VLS60. I would intend instead to use the next tranche of my investment money to buy something other than more VLS60, and instead give dividend-paying stocks a go. I've also thought about gold and Tesla (although Tesla may be a little like bitcoin in that it's a bit of a bubble and I have probably missed the boat on the biggest gains. (I am aware that Tesla is not a dividend paying stock, and neither would gold be).

And what do those people know? 

Possibly not a lot, but they seem quite convinced! 

Most of my new money I invest in my ISA will simply add to my VLS60 (acc). The dividend stocks, Tesla, gold will only be a small part of my investment.

Perhaps they have to be given how much money they will have lost the last few years, and then how much money they've lost through not taking the opportunity to invest in a wider set of companies. Otherwise they will have to admit to themselves they were wrong.

FWIW i dabbled in it a few years ago and realised it was the wrong strategy for now, and got out.

So, I admit i was wrong, but i realised and changed those investments. Some people never will. Dont let them drag you down with them.

Type_45

AnotherJoe said:

Type_45 said:

AnotherJoe said:

Type_45 said:

bowlhead99 said:

Type_45 said:

Hi all,
I'm a long time investor in VLS60 (acc) within an ISA.

But I'm now thinking of also investing in dividend-paying stocks (again, within my ISA).

Any thoughts on the best dividend stocks?

Dividend paying investments probably have a lower propensity for capital growth than investments which internally reinvest the capital in their portfolio of business opportunities rather than paying it out.

My higher-paying investments include LLPC, RAVP, THRL, NWBD, HICL, INPP, BBOX, TRIG, BP.A, GSF, ELLA, STAC, and even the odd non-paying share that's a punt for the future such as RE.B.  I added to most of them when share prices took a tumble earlier this year. However, a number of them are preference shares rather than equity and the prices of those will more likely fall rather than rise over the longer term, even if the yield is good.

I do have some shares or funds paying more moderate levels of income (e.g. Unilever paid over 140p for the last year, which is about 3% of its current share price) but you may find that level of dividend somewhat mundane. The 'best' dividend stock for you likely depends on whether you are looking for income at the cost of most of the growth potential, or a more moderate income potential in addition to growth potential, or a, non-zero but small income and mostly growth potential, and whether you are willing to overconcentrate your portfolio mix in certain industries or types of financial instrument to grind out a result.

Most people, self included, are looking for a blend of returns from a broad portfolio. If you have been getting your broad portfolio exposure from VLS60, which is not known for a particularly high dividend yield, is there a particular reason why you now want to chase dividend yield?

Thank you very much for that. In answer to your question at the end of your post, the reason I'm looking at dividend stocks is because I've been following people on social media who are into them. And it's made me want to have a dabble. 
I don't intend on replacing, or even reducing, my existing VLS60. I would intend instead to use the next tranche of my investment money to buy something other than more VLS60, and instead give dividend-paying stocks a go. I've also thought about gold and Tesla (although Tesla may be a little like bitcoin in that it's a bit of a bubble and I have probably missed the boat on the biggest gains. (I am aware that Tesla is not a dividend paying stock, and neither would gold be).

And what do those people know? 

Possibly not a lot, but they seem quite convinced! 

Most of my new money I invest in my ISA will simply add to my VLS60 (acc). The dividend stocks, Tesla, gold will only be a small part of my investment.

Perhaps they have to be given how much money they will have lost the last few years, and then how much money they've lost through not taking the opportunity to invest in a wider set of companies. Otherwise they will have to admit to themselves they were wrong.

FWIW i dabbled in it a few years ago and realised it was the wrong strategy for now, and got out.

So, I admit i was wrong, but i realised and changed those investments. Some people never will. Dont let them drag you down with them.

That's very good advice. Thank you 👍

Vet

Type_45 said:

Hi all,
I'm a long time investor in VLS60 (acc) within an ISA.

But I'm now thinking of also investing in dividend-paying stocks (again, within my ISA).

Any thoughts on the best dividend stocks?

I mix mine up currently with accumulation funds and dividend paying funds through the Vanguard ISA platform.
Variety gives you the best of both worlds
I've split mine into approx:
51% LS80 (acc)
19% Retirement fund 2050 (acc)
30% VHYL (income)

dunstonh

LobsterMemory said:

dunstonh said:

Any thoughts on the best dividend stocks?

Also, do you realise that higher yielding shares tend to have lower price growth as they are reducing future growth potential of the company?

Also, do you realise that the OP didn't mention investing in higher yielding shares?

And to keep on topic: DGE.

The OP said "Any thoughts on the best dividend stocks?"
That could mean a couple of things. Including best dividend.  And he asked for thoughts and I gave my thoughts.  
Sorry but I thought this was a discussion site.

I would advise you ignore people who "know" their investment style is right and others are wrong.

Absolutely correct.  There are so many different ways to invest.  Each with its pros and cons and a heavy dose of opinion linked to it.     Yield focus has been so damaging to UK large cap when it comes to globalisation.