Are THESE The BEST Dividend Stocks?

Everyone loves the idea of passive income - let’s use my favorite hack for finding high quality investments.

There are around 16 major dividend ETFs. I’m going to use their #1 holding (or 2nd if the first is the same) to put together a massive stock based passive income portfolio just in case you’re not an ETF kinda person. 

SCHD: BMY

VYM: AVGO

VIG: MSFT (2nd) 

DGRO: XOM

SDY: VZ

DVY: F

HDV: CVX (2nd)

NOBL: ALB 

RDVY: LRCX

DGRW: AAPL (2nd)

FNDX: GOOGL (3rd) 

SPYD: CVS

IDV: BTI 

WDIV: APA

SPHD: PFE

DIV: AMBP 

So, do you just buy all of these? No - this list isn’t financial advice and many of these aren’t traditional dividend stocks anyway (big tech, for example). 

You want to consider stuff like the dividend safety grade (if you’re using Seeking Alpha), payout ratio (anything over 60% is either very high risk or indicates that the company won’t be doing dramatic dividend increases any time soon), dividend growth (25+ years = dividend aristocrats, 50+ years = dividend king), and 5 year growth rate (have they been raising or cutting). 

You should also use my fundamental analysis template to get a good idea on whether the company is fundamentally in a good place re: earnings, cash flow, cash on hand, etc.). 

If you wanna learn more about dividends, use my guide here.