For me there are few things more patriotic than earning fat dividend checks from U.S. companies. I like dividends more than apple pie.
For some fun today, I want to highlight a few attractive, dividend paying stocks with at least a plausible tie to an All-American theme.
I hope you have some fun plans for the 4th of July. It is one of my favorite holidays. I think it comes from my time in the U.S. Air Force and because it comes right in the middle of summer. This year, with the holiday falling on a Thursday, I am sure if your holding down a job, there will be temptation to turn this into a four-day holiday weekend. That’s my plan!
Let’s get to my Independence Day themed list of stocks going.
What could be more American than the Ford F-150 pickup truck. As Ford Motor Company (F) is proud to remind us in their ads, the F-150 has been the top selling vehicle for 42 consecutive years.
I find it an interesting fact, considering how much the investing public is focused on electric cars. Unfortunately for electric car manufacturers, two-thirds of vehicle sales are trucks and SUVs, with the percentage of cars declining each year.
According to CNBC, Ford is forecast to be selling 90% trucks and SUVs by 2022. Ford shares are a solid dividend investment.
The current yield is 5.9% and the dividend has been increased for seven straight years.
One thing Americans like to do when they drive their F-150’s is to go shopping. While the financial media may be convinced that e-commerce is taking over America, the U.S. Census Bureau reported than in the 2019 first quarter e-commerce sales accounted for 10.2% of total sales. My math calculation from that says that almost 90% of retail still occurs in brick-and-mortar stores and shopping centers.
Tanger Factory Outlet Centers (SKT) is the only shopping center REIT that is a pure play outlet mall investment. The Tanger share price has been hit hard over the last three years on the e-commerce will take over the world theme. I think the numbers show that belief is not backed by data.
Tanger has increased its dividend for 26 consecutive years.
The current low share price means SKT yields 8.75%. This is a great turnaround story.
Another theme tied to the 4th of July, or at least to summer, is air conditioning. I am sure you know how your power bill goes up as you keep your home cool this time of year.
NextEra Energy (NEE) is the world’s largest utility company one of the best dividend growth utility stocks. NextEra primarily provides power in Florida, operating as Florida Power & Light Company.
The NEE dividend has been increased for 24 straight yields. Dividend growth has been at a 9.5% compound growth rate for the last decade and increased at 13% compounded for the last three years. Current yield is 2.4%.
The dividend growth rate is the force to power the stock higher.