Johnson & Johnson (JNJ), The Coca-Cola Company (KO), AT&T Inc. (T): Three High Dividend Stocks to Consider at Market Dips

Johnson & Johnson (NYSE:JNJ) has an attractive dividend yield, which is better than the U.S 10-year Treasury note. Its annualized dividend is $2.64 per share, with yearly growth seen for the last ten years.

Johnson & Johnson (NYSE:JNJ) reported very impressive performance for its oncology and immunology products. Its latest financial report showed oncology product sales grew 33%, while the immunology product sales also increased by 5.2%.

On top of that, Johnson & Johnson (NYSE:JNJ) successfully secured approval from the U.S. Food & Drug Administration (FDA) for its diabetes drug Invokana. This is a potential blockbuster drug. More importantly, its pharmaceuticals segment has more than 10 potential new products filing by 2017. This is projected to fuel the growth of the company.

AT&T Inc. (NYSE:T)

AT&T Inc. (NYSE:T) is a third stock worth consideration. It has one of the highest yields in the market at 5.08%.

This is well above the average yields of Treasury notes and bonds. The annualized dividend of AT&T Inc. (NYSE:T) is $1.80 per share, increasing year-over-year since 2004.

AT&T Inc. (NYSE:T) also has an upside potential of about 20%, taking into account its fair market value and expected return.

Summary

In a nutshell, dividend stocks used to be safe havens for investors looking for higher yields. But when the market gets too crowded, as investors are left with fewer options, it becomes relatively unsafe in some cases. The market may drastically shift focus when better alternatives show up as the economy improves. Aside from that, if interest rates in savings and bonds are increased, this may trigger massive sell-offs. Many investors will shift their investments to safer fixed income mediums.

However, wise and cautious dividend investors will not be affected by sell-offs triggered by speculations and market outlook. The current slump of dividend stocks opens another opportunity to secure a good position for dividend stock investing.

The article 3 High Dividend Stocks to Consider at Market Dips originally appeared on Fool.com and is written by Nur Tarkak.

Nur Tarkak has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola and Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. Nur is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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