2 Unstoppable Dividend Stocks to Buy Now With $500

Core Insights - The article discusses two top dividend stocks, Johnson & Johnson and United Parcel Service, highlighting their financial health and dividend performance as attractive investment opportunities. Group 1: Johnson & Johnson - Johnson & Johnson is one of the largest pharmaceutical companies globally, with a history of increasing dividends for over 62 years [3][4]. - The current dividend yield for Johnson & Johnson is approximately 3.2%, significantly higher than the S&P 500 average of 1.3%, with a forward annual dividend payout of $4.96 per share [4]. - The company maintains a payout ratio of 80% of earnings, generating $20 billion in free cash flow and $25 billion in operating cash flow over the last 12 months, indicating strong financial stability [5]. - In Q3 2024, Johnson & Johnson reported net sales of $22.4 billion, a 5% increase year-over-year, with net earnings of $2.7 billion [7]. Group 2: United Parcel Service - United Parcel Service has consistently paid and raised its dividend since its IPO in 1999, with a current forward annual dividend rate of $6.52 per share [8]. - The current yield for UPS is nearly 5%, which is almost four times higher than the average S&P 500 stock, despite recent challenges in package volume and increased costs [9]. - UPS has maintained a payout ratio of over 90% of earnings, generating $4 billion in free cash flow over the trailing 12 months [10]. - In Q3 2024, UPS reported revenue of $22.2 billion, a 5.2% increase from the previous year, with earnings rising by 37% to $1.5 billion [12][13].