It can rightly be said that dividends are the holy grail for long-term investors. Although dividend paying stocks have outperformed their peers who do not pay dividends in the long run, there are many other reasons why investors like dividend stocks.

For starters, dividend stocks are often a symbol of profitability. Think of it this way: the management team and / or the board of directors of a company is not going to approve the continuous sharing of company profits if the prospects do not suggest not continuous profitability and growth. A company willing to share a percentage of its profits probably has a proven business model, especially useful when the stock market is volatile.

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<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Secondly, dividends can provide a feeling of calm during corrections While dividends alone are not enough to protect your portfolio from short-term paper losses, they can certainly have a calming effect help cover your losses. "Data-reactid =" 34 "> Secondly, dividends can provide a sense of calm in the inevitable market corrections, although the dividends distributed do not necessarily prevent your portfolio from losing paper in the short term, they can certainly have a calming effect helping to cover your losses.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Dividend stocks are also excellent builders of wealth , thanks to dividend reinvestment plans. Most brokerages allow you to reinvest your payments in more dividend paying equities, which creates a compounding effect that allows you to own more shares and receive a larger payment at the same time. over time. This is a strategy commonly used by leading financial managers to create wealth for their clients. "Data-reactid =" 35 "> Dividend stocks are also excellent wealth creators through dividend reinvestment programs.Most brokers allow you to reinvest your payments in more shares. dividend-paying stocks, creating a weighting effect in which you own more shares and receive a larger payment over time, a strategy commonly used by top financial managers to create wealth for their clients.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Apple pays a huge dividend, but it's not the biggest "data-reactid =" 36 ">Apple pays a huge dividend, but it's not the biggest

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In recent years, few actions have been more attractive from the income point of view than the technology hub Apple (NASDAQ: AAPL). Apple has an exceptionally loyal customer base thanks to its iPhone – Apple has probably sold more than 215 million iPhones in 2018 – and generates a foolish amount of free cash flow each year. This allowed Apple to build its cash position (including cash held abroad and therefore less readily available) to more than $ 250 billion at one point. "Data-reactid =" 37 "> In recent years, few stocks have been more attractive from the income point of view than the technological hub Apple (NASDAQ: AAPL). Apple has an exceptionally loyal customer base thanks to its iPhone – Apple has probably sold more than 215 million iPhones in 2018 – and generates a foolish amount of free cash flow each year. This has allowed Apple to build more than $ 250 billion (including cash held abroad and therefore less readily available) at some point.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Apple's cash position has increased in the first Part of Over the decade, calls have been made to return some of this capital to shareholders: this is the first quarterly dividend of Apple for 17 years in July 2012. It was initially a payment of about $ 0.38 per share (this figure takes into account the 7 -1 share split in April 2014), Apple is now dividing $ 0.73 per share each quarter. Given its 4.73 billion shares outstanding, Apple pays $ 13.81 billion annually to investors in the third quarter of its quarter. "Data-reactid =" 38 "> Apple's cash increased at the beginning of the decade, so it was born Apple's first quarterly dividend in 17 years in July 2012. Initially, a payment of nearly $ 0.38 per share (this takes into account the company's 7 for 1 share) now divides $ 0.73 per share every quarter, taking into account its $ 4.73 billion outstanding shares, based on its filing in the third quarter, Apple pays 13.81 billion dollars a year to investors.

Surprisingly, this is not the best payout of the market. In fact, it's not even second or third. Three brand companies currently pay more than $ 13.81 billion a year to its shareholders.

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<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "AT & T: $ 14.86 billion in dividends"data-reactid =" 65 ">AT & T: $ 14.86 billion in dividends distributed

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The real king of all dividend-paying stocks moment is giant telecommunications AT & T (NYSE: T)which, after its last dividend increase and average weighted shares outstanding at the end of the third quarter, is poised to pay $ 14.86 billion over the next year. & nbsp; "data-reactid =" 66 "> king of all stocks paying dividends right now is the telecommunications giant AT & T (NYSE: T), which, after the last increase in its dividend and the weighted average number of shares outstanding at the end of the third quarter, is expected to pay $ 14.86 billion in the next fiscal year.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "AT & T is an absolute power in the sector telecommunications with a substantial share of the US wireless market and anticipating stronger revenue growth in the coming years, in the wake of the deployment of the 5G wireless network, which will become the United States at the beginning of the next decade, smartphone users should be encouraged to switch to newer and faster devices. help AT & amp; T to generate income with a higher margin. "data-reactid =" 67 "> AT & T is an absolute power in the telecommunications industry, with a substantial share of the US wireless market and the expectation of stronger revenue growth in the US. years ahead, in the wake of the market Deployment of 5G wireless network: the 5G becoming the standard in the United States at the beginning of the next decade, it should encourage users of smartphones to move to new devices faster and more efficient , which will help AT & T generate higher margin revenue.

AT & T is also benefiting from the acquisition of Time Warner, which has brought together the CNN, TNT and TBS networks. These popular networks are likely to play the role of pending carrots for undecided consumers and are expected to boost the number of AT & T video subscribers in the years to come.

Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" After generating an annual average of 36.5 billion dollars of its operating cash flow over Over the last five years, AT & T's top dividend is very durable. "data-reactid =" 69 "> With an average operating cash flow of $ 36.5 billion per year over the last five years, AT & T's top dividend is quite sustainable.

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<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Microsoft: $ 14.12 billion in dividends distributed "data-reactid =" 91 ">Microsoft: $ 14.12 billion in dividends distributed

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Another technology giant with whom you should not to be surprised see before Apple in the dividend column is Microsoft (NASDAQ: MSFT). On the basis of the company's diluted 7.673 billion shares outstanding at the end of the first fiscal quarter, Microsoft is poised to pay $ 14.12 billion in dividends over the next year. "Data-reactid =" 92 "> Another tech giant that you should not buy. T be surprised to see Apple in the dividend column is Microsoft (NASDAQ: MSFT). On the basis of the company's diluted 7.673 billion shares outstanding at the end of the first quarter of fiscal year, Microsoft is poised to pay $ 14.12 billion in dividends over the next year.

When we talk about Microsoft, we are talking about the story of two companies. On one side, there is Microsoft's personal computing, productivity, and business process operations, which include its dominant Windows operating system, its commercial Office products, its search advertising revenue, its revenue and its sales of Surface tablets, just to name a few components. Even with a low Windows OEM revenue, as expected, PC sales climbed 15 percent in the first quarter. Revenues from high-margin games rose 44% in the last quarter, as advertising revenues, excluding traffic acquisition costs, jumped 17%.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "On the other side of Microsoft that some people might forget about his next-generation cloud platform. Sales of server products and cloud services climbed 28% in Q1 2019. Azure's revenue rose 76%. As companies move their hardware data to the cloud, Microsoft's Azure should continue to gain ground. & Nbsp; "data-reactid =" 94 "> The other side of Microsoft that some people might forget is its next-generation cloud, with sales of server and cloud services rising 76 percent in the first quarter of 2019. The number Azure's business grew by 76%, while companies are relocating their hardware data to the cloud, and that Microsoft Azure should continue to gain momentum.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Like AT & T, Microsoft generated a ton cash flow from operations over the past five years ($ 35.2 billion annually), suggesting that not only is its dividend sustainable, likely to go even higher. "data-reactid =" 95 "> Like AT & T, Microsoft has generated a ton of operating cash flow over the last five years ($ 35.2 billion a year), suggesting that its dividend is not only sustainable, but it is probably even much higher.

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<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "ExxonMobil: $ 13.87 billion in dividends distributed"data-reactid =" 117 ">ExxonMobil: $ 13.87 billion in dividends distributed

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Finally, heavyweight embedded in oil and gas ExxonMobil (NYSE: XOM) Apple's dividend division slightly exceeds Apple, with global payments of $ 13.87 billion that should guide shareholders over the next year. "data-reactid =" 118 "> Finally, the heavy weight of oil and gas integrated ExxonMobil (NYSE: XOM) slightly exceeds Apple in the Dividend Department, with total payments of $ 13.87 billion expected to guide shareholders over the next year.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "We can say that the main reason to buy in ExxonMobil is the company diverse operations. In addition to onshore oil activities that most people are familiar with, she also participates in offshore drilling, has assets in the Canadian oil sands, uses natural gas, and uses her downstream operations to refine petroleum products. This essentially means that ExxonMobil can take advantage of rising oil prices and can also hedge its business through its downstream activities if crude oil prices are down. "Data-reactid =" 119 "> It can be said that the main reason to invest in ExxonMobil is the diversity of the company's activities.In addition to the onshore oil operations known to most people, it is also involved in Offshore drilling, owns assets in the Canadian oil sands, drills natural gas and uses its downstream activities to refine oil products, which essentially means that ExxonMobil can take advantage of the rising price of oil. oil and also cover its activities via its downstream activities.if crude oil prices are falling, it is difficult to break its armor.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "As my colleague Reuben Gregg Brewer points outExxonMobil also has a relatively low long-term debt amount compared to its competitors. Considering that the oil and gas sector is very capital intensive, both for maintenance and exploration, ExxonMobil's superior financial flexibility is another reason for its stability when the price of crude oil is anything but stable. "" Data-reactid = "120"> As my According to his colleague Reuben Gregg Brewer, ExxonMobil also has a relatively low long-term debt compared to its peers. Due to the fact that the oil and gas sector is highly capital intensive, both for maintenance and for exploration, ExxonMobil's superior financial flexibility is another reason behind its stability when crude prices are all but stable.

Despite the significant decline in oil prices over the past four years, ExxonMobil has managed an average annual operating cash flow of $ 33.6 billion since 2013. In other words, there is Chances are that the ExxonMobil dividend is here to stay.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 122 "> More from The Motley Fool

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Teresa Kersten, a LinkedIn employee, a subsidiary of Microsoft, is a board member of The Motley Fool. Sean Williams owns AT & T shares. The Motley Fool owns shares and recommends Apple. The Motley Fool owns shares in Microsoft and offers the following options: long calls from $ 150 on Apple to January 2020 and short calls from $ 155 on Apple to January 2020. The Motley Fool has a disclosure policy."data-reactid =" 130 ">Teresa Kersten, a LinkedIn employee, a subsidiary of Microsoft, is a board member of The Motley Fool. Sean Williams owns AT & T shares. The Motley Fool owns shares and recommends Apple. The Motley Fool owns shares in Microsoft and offers the following options: $ 150 long calls on Apple to January 2020 and $ 155 short calls on Apple to January 2020. The Motley Fool has a disclosure policy.