Brian Feroldi (Johnson & Johnson): Investors who are new to dividend-paying stocks may start out by buying some industry giants that have a history of growing their payouts. If that appears like an attractive strategy to you, then we suggest starting with healthcare conglomerate Johnson & Johnson (J&J).
The company counts five drugs that are expanding fast and are already generating more than $1 billion in annual revenue. Additionally, the company expects to have at least ten more top-notch drugs on the market by 2021 that will make their business boom.
Steve Symington (Nike): Investors can most often enjoy global industry leaders, dividend payers, and easy-to-understand firms with a long runway for growth.
Shares are currently trading at a reasonable price – given its bottom-line growth of 20.8 times this year’s expected profits. For investors willing to buy now and reinvest Nike’s dividend, which yields 1.4% at today’s prices, Nike stock is seen to continue delivering market-beating profits for years to come.
Jason Hall (American Express Company): Investors can do amazingly well by concentrating on dividend growth, and not necessarily high return. The fact is, time in the stocks is the new investor’s most powerful asset, and one of the best dividend growth stocks in the past 30 years. American Express is in an excellent position to be one of the best dividend growth stocks over the next 30 years, too.
American Express is in a stable long-term position. The world’s middle class is getting larger and richer, and electronic payments are becoming common in the developing countries. There will be more competition, but with its possible infinite growth opportunity, AmEx could reward new investors moving forward the same way it has paid investors over the past few decades.