In 2016, the US stock market saw a surge in dividend-paying stocks, offering investors a chance to secure stable income while watching their investments grow. This article delves into the best US dividend stocks of 2016, highlighting companies that stood out for their strong financial performance and commitment to shareholder returns.
Exxon Mobil Corporation (XOM)
Exxon Mobil, one of the largest oil and gas companies in the world, topped the list of best US dividend stocks in 2016. The company, known for its robust dividend policy, increased its dividend for the 34th consecutive year. With a dividend yield of around 2.6%, Exxon Mobil provided investors with a reliable source of income, even in a volatile energy market.
Johnson & Johnson (JNJ)
Johnson & Johnson, a leading healthcare company, was another top pick for dividend investors in 2016. The company, known for its diverse product portfolio, including consumer healthcare, pharmaceuticals, and medical devices, increased its dividend for the 54th consecutive year. With a dividend yield of approximately 2.8%, JNJ offered investors a stable and growing stream of income.
Procter & Gamble (PG)
Procter & Gamble, a consumer goods giant, was also a standout dividend stock in 2016. The company, known for its brands like Tide, Pampers, and Gillette, increased its dividend for the 60th consecutive year. With a dividend yield of around 3.2%, P&G provided investors with a strong and consistent income stream.
Microsoft Corporation (MSFT)
Technology giant Microsoft was another top pick for dividend investors in 2016. The company, known for its Windows operating system, Office productivity suite, and cloud computing services, increased its dividend for the 13th consecutive year. With a dividend yield of approximately 2.4%, Microsoft offered investors a steady and growing dividend, along with the potential for capital appreciation.
Case Study: AT&T Inc. (T)
AT&T, a telecommunications company, was another dividend-paying stock that caught the attention of investors in 2016. The company, known for its wireless, wireline, and broadband services, increased its dividend for the 32nd consecutive year. With a dividend yield of around 5.6%, AT&T offered one of the highest yields among the top dividend stocks of 2016.
Conclusion
In 2016, investors looking for stable and growing dividend income had a variety of options to choose from. The best US dividend stocks of the year, including Exxon Mobil, Johnson & Johnson, Procter & Gamble, and Microsoft, provided investors with a reliable source of income and the potential for capital appreciation. As investors continue to seek high-quality dividend stocks, these companies remain solid choices for their portfolios.
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