5 Dividend Stocks Back from the Dead

These five stocks made dividend cuts but are coming back from the dead. That could mean huge double-digit returns and stronger dividend yields for investors going forward!

2020 has been a dividend investor’s nightmare with more than 770 dividend stocks cutting or pausing their payout already. More than 63 dividend-paying companies in the S&P 500 have already cut, the most since 2009, and more are expected.

Every sector has been hit by the dividend disaster, not just energy stocks or tourism-related. I’ve found utilities companies that cut their dividend…and those are supposed to be the safest dividend-paying businesses around.

But there’s actually an opportunity in this for dividend investors. When that dividend yield is cut, it usually means a huge plunge in the stock price. So if you can find dividend stocks ready to reinstate their payments then you can collect a higher yield while watching the stock price rocket higher!

Researching the companies cutting or pausing dividend payments, I found that many were just management trying to be overly cautious. They still have strong cash flow but are maybe looking at one segment of the business that could get hit…and they want to make the hard decisions to protect cash while they can.

These are perfect candidates to increase the dividend back up and see their stock price rise along with it.

So in this video, I’ll show you how to find these dividend-rebound stocks. I’ll share the cash flow metrics and ratios I use and how to know if a dividend stock can afford its payment. I’ll then reveal five income stocks to buy right now.

I start off by going to the Statement of Cash Flows, the most important of the three financial reports. This statement will show you the cash flow from operations and the free cash flow of the company.

The cash flow from operations (CFO) is the key cash-generating power of the company. Only a company that is creating cash from its core business will have any available to pay a dividend.

Free Cash Flow (FCF) is a measure of the operating cash flow left over after maintenance and investment spending back into the company. It’s a great measure of how much cash the company has available for the dividend. Companies with stable or rising free cash flow will not only survive that dividend cut but will be able to increase the payment again.

I’ll also compare the company’s operating expenses against cash held on the balance sheet to make sure the company has the cash-on-hand to survive and eventually restart its dividend. I know this sound like a lot of work and a lot of analysis but it’s the only way to take advantage of this opportunity in dividend stocks and make sure you’re investing in the best.

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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.

[justcallmeneb]

Just started my dividend portfolio this year. My current annual income from dividends is around $250.

[sagig]

Great video, especially appreciating you explaining what and where to look into in order to make this research on our own!

[jamesd]

Thank you for explaining the HOW and WHY.
I train employees in a similar manner.
Handing them fishing poles first, then handing them fish.

[joymae]

Brace yourselves, 2020 isn’t over yet lol

[Muhammadkhan-rhoz]

Kindly give analysis about exxon Mobil future

[Imhereright]

The tough part is figuring out when your dividends get cut or lowered when you have so many

[DandyFinance]

Airlines could be a great play for the rebound. But I'm not so sure to when it may actually happen. Thanks for sharing!

[finance]

I'm bag holding on $TAP which also proactively cut dividends this year. They have a few promising partnerships coming up but the dividend was a bright spot for otherwise poor performance.

[buddha]

I want to make so much money on dividends, that I can open a Zen Buddhism cafe meditation centre here in the U.K. and offer free food and drink to anybody in need. 😉😍

[JPE_DRAEB]

Can you please give your analysis of Chevron (being sold) and Exxon futures? When to buy? And what happens to their dividend?

[theyoutubegeek]

Hey, what are your thoughts about Beyond Tobaco TAAT/TOBAF?

[myaparker]

nice video and wow you have 257k subscribers i wish...

[thomashavlock]

I’m still new to this. With the section that says dividend yield. Do I just take the share price and divide it by percent? So IVZ is at $11.95 per share with a yield of 8.15. What does that specifically mean.

[bgwinn]

Don’t forget BUD’s ridiculous foreign withholding. Sigh

[davidcooper]

Thanks Joseph... your vlog is helping me to invest better on the US market. As I live in New Zealand $100nzd is only $60usd so $50+usd stocks are just not viable on what I can afford to invest in for a dividend return but with your information I have found some really good high yield dividend stocks under $30usd.. thankyou for all your efforts. The likes of Invesco ($10usd)is another one I can put my hard earned NZD into

[jjp]

Hi Joseph, I’m your follower and a complete beginner in Stock exchange world. Thank you for your generosity sharing what you know to us.
I am building my port with core-satellite investing approach as recommended.

I bought GOVT yesterday as one of five ETF, according to my PORT building up plan.

I have a question for you, what do you think about GOVT.?
Thank you, JJ

[JohnVanderbeck]

Appreciate the lesson more than the picks, but would be nice to actually walk through an example using free resources.

[deepaknegi]

Hi Joseph do u think we should invest before election or after election?

[jamesd]

Smash the LIKE button!
There are more than 183 Bow Ties out there.

[briansnead]

Henry Rollins??

I was JUST going to say C1 CC for Walmart is money! 5% back. BUT, only a year.

Joe, everyone uses YouTube for stonks. I bought poopoo tract cancer penny stonk based on your recommendation. I would have never found that. It's obviously Amzn 2.0 and Its 30% of my portfolio. 🤣