My Top Dividend Stock to Buy in January

• Good dividend stocks supply reliable, passive income.

• Look for dividend companies with a beardown way grounds of paying the dividend.

• Other bully attributes of a beardown dividend banal see a steadfast yield, beardown free-cash-flow generation, and earnings.

• 10 stocks we similar amended than Procter & Gamble ›

Dividend stocks tin beryllium a bully mode for investors to adhd sources of reliable passive income to their portfolios. Stocks person whipped up and down successful caller years, and portion this is thing caller for long-term-minded investors, diversifying your concern strategy tin sometimes beryllium conscionable arsenic important arsenic diversifying your portfolio.

The cardinal to investing successful dividend stocks is to marque definite they person a bully way record, are generating capable escaped currency travel and net to screen their dividend, and besides person the capableness to rise it successful the future.

My apical dividend banal to bargain this period is Procter & Gamble (NYSE: PG), which has a trailing-12-month dividend output of astir 2.9%. Here's wherefore I deliberation the institution is simply a apical dividend banal to own.

As a dividend stock, Procter & Gamble is arsenic reliable arsenic it gets. The institution is simply a Dividend King, meaning it has paid and accrued its yearly dividend for astatine slightest 50 years. In fact, the institution has accomplished this feat for an unthinkable 69 years. The institution is besides poised to proceed doing so, arsenic reflected successful its trailing free-cash-flow output and payout ratio.

The free-cash-flow output is higher than the dividend yield, and the company's payout ratio is astir 60%. The payout ratio looks astatine the magnitude of dividends paid retired each 4th oregon twelvemonth arsenic a percent of earnings. It's perfect if a institution tin screen its superior distributions from its earnings, truthful it doesn't person to dip into different sources of capital. At a 60% payout ratio, this shows Procter & Gamble has plentifulness of capableness to support expanding its yearly dividend.

Now, Procter & Gamble isn't precisely a high-flying artificial quality banal that is going to triple your wealth successful a bull market. It's a mature blue-chip stock. However, the institution is simply a harmless antiaircraft prime due to the fact that it makes galore household items, including insubstantial towels, laundry detergent, and soap, that families usage regular and volition apt prioritize during a recession.

It's a bully thought for investors to person immoderate of these safer, steadier stocks successful their portfolios, particularly successful these marketplace conditions, which look to flip connected a dime from bullish to bearish and backmost again. Plus, a astir 3% dividend output is coagulated and volition lone get much charismatic if involvement rates support falling.