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Today i’m going to share with you guys two three stocks that i believe have huge potential to pay monster dividends over years to come i’m going to show you my whole thought process and how i figure this out and i cannot wait to share this with you guys today good day subscribers thank you so much for joining me today i am jeremy this is the financial education
Channel and today we’re talking my three stocks that i have figured out could pay huge monstrous dividends for years and years to come and i’m going to share with you guys my whole thought process on how i figure this out how i look at it and the process is actually pretty simple it’s not super in-depth so i’m going to really enjoy sharing this with you guys today
If you like dividend type videos hit that thumbs up button if you haven’t subscribed go ahead and hit that subscribe button now because i share a lot of tips about the stock market that i use and what not so let’s get right into this guy on your screen now you should see apple apple is the number one company in my opinion that has the ability to pay huge dividends
For years and years to come it is disgusting the amount of money they’re going to be able to pay out dividends for years to come and what they can already pay out so apple the first thing i like to look at if i’m looking remember this video is just about judging dividends in how much a company has to pay for dividends in the future and how much they can afford those
Kinds of things so we’re not going into depth on what’s a good stock and those kinds of things were strictly sticking to dividends so we’re in the oven finance here we’re looking at apple the dividend yield we see is around 2% we see they pay out about two dollars and 28 cents per year that’s a per year number in dividends to the shareholders currently their current
Eps is about 8.58 cents so paying out about two dollars and 28 cents per share in dividends per year but they’re making about eight dollars and 58 cents per share in profit right now so their profit their eps is way outweighing what they’re paying dividends so you can see if they really want to jack up their dividends to say a yield of 4% 6% something like that
And increase that dividend to paying out $4 $6 something like that they could easily do it and still have a lot of money in the bank they can still be having way more money left over but the next key and the next thing we’re going to look at is where’s their income coming where’s their profits going and those kinds of things because if we if we’re just investing
In company that’s stagnant that’s not good and if we’re investing in a company that’s profits are actually going down then that’s a bad sign and that may not be able to the company might not be able to raise a dividend over time which is what we’re looking for when we’re looking for a dividend a stock so let’s go ahead and look at their income statement here as
We see only the right-hand side that was three years ago they did 37 million two years ago they did 39 million in profits and last year they did 53 million in profits so you can see that their income their profit is just getting more and more they’re becoming more and more profitable which is phenomenal for judging this because we need a company that profits are
Just being pushed up and pushed up because then that means the company will have even more ability to raise that dividend the future and raise it and raise and raise it so when i look at apple i see a company that as long as they can keep doing what they’re doing now or better in the future they have such an opportunity to pay out huge dividends for years to come
And raise that dividends for decades to come each year raise it a little bit another year raise it a little bit those kinds of things so apple is the number one stock i would say that has the most potential if you want to collect dividends for years to come they’re decades to come and of course you’ve got to look into the business and all those kinds of things in
Judge the business as well but for this video we’re just looking at dividends and trying to judge it very simply nick stock up we’re looking at google now i kind of cheated on this one because google doesn’t pay dividends currently they pay no dividends they have no dividend yield as you see down there they’ve never paid a dividend i think google is going to pay
A dividend very soon i would say within the next year to google we’ll be paying dividends i see how much money they had come in and there they’re not using it for pretty much anything they’re kind of like apple used to be back in the day with apple wouldn’t pay dividends or do share buybacks or anything like that and apple just kept banking money banking money
Google’s the same way google has a lot of potential i was looking at their income statement and i saw in their incomes our excuse me other balance sheet their balance sheet has like i think it was 60 billion or something ridiculous in short-term investments they have a ridiculous amount on the balance sheet but let’s look at ets they did over 25 dollars in eps
Last year twenty five point eight or 25 dollars and 81 cents in earnings per share so they got a lot of money coming in and they’re paying no dividend currently let’s see what their profitability is three years ago they did to 12 point 7 billion dollars in profit your next year they did 14 point 1 billion in profit and last year they did 15 point eight billion in
Profits so profits are just getting more and more for google they’re just becoming more and more profitable as years go on and that is assigned to me that this is a very healthy company that’s a huge corporation they got way too much cash on the balance sheet there got way too much profits coming in to not start paying a dividend now or doing a share repurchase
Or something but definitely pay a dividend because the shareholders are going to start demanding it they don’t want all that cash just to sit there forever and ever that’s what apple did for a long time then apple finally you know around 2011-2012 they’re like okay let’s start giving this money back to our shareholders now this is what i’ve youghal will do very
Soon i believe the pressure will be put on them to do this it makes no sense not to do it it really doesn’t you have all you have more cash than you could ever use on that balance sheet you have more money than you could possibly use coming in for profits and you’re just becoming more more profitable i see google paying a big dividend very very soon within the next
Year or two and they will be able to raise it for years and years to come as long as our business just keeps increasing and increasing stock number three on your screen now is the home depot our retailer made the list today now we see they pay out a pretty nice dividend right now as it is around a 2.2 percent yield they pay $2 and 78 cents and dividends per year
Per share so in there eps is a little under six dollars five dollars and 91 cents so they’re earning over double what they’re paying out in dividends currently so they’re definitely company has all ability to pay out a lot more in dividends if they want to but let’s go ahead and look at that profitability where’s their profitability going see three years ago they
Did 5.3 billion in profit the next year they increased a billion dollars more in profit 5.3 billion this past year they did over seven billion dollars in profit you can see this company is becoming more and more profitable their profits are just getting better and better as time goes on and as long as they keep that up they can they can raise that dividend a long
Way they can raise that dividend a long way because retail generally when you build a store and especially in home depot’s case is not a lot of improving you have to do it’s not like you need to go renovate that store every five years or something it’s a very easy business you build that store and then what else do you have some money to spend on unless you want to
Acquire another retailer or something like that there’s not a ton of money to be used in retail so a company like home depot they can definitely afford to pay out way bigger dividends currently if they didn’t become any more profitable they just stay stagnant they could still afford to pay out way more but the fact that they’re getting more and more profitable is
These years go on that just means they’re going to be able to raise that dividend and again and again and again over years to come so these are three stocks i’m looking at apple google home depot google is the only one that doesn’t currently pay a dividend but i think they will pretty soon and all three of those just have a ton of ability to raise those dividends
As time goes on i hope this helped immensely guys and understand my thought process on how to judge a company that i think can pay a lot of dividends in the future and leave a comment in the comment section if you enjoyed this video hit that thumbs up button and if you haven’t subscribed you may want to i talk a ton about personal finance business entrepreneurship
I’m an entrepreneur so i talk a lot about that and i talked so much about the stock market and do dividend stock videos like we did today thank you for watching guys and have a great day you you you
Transcribed from video
3 Stocks that can pay HUGE dividends in the Stock Market! – Dividend Stocks! By Financial Education