Dividend stocks should be a part of any well-rounded portfolio. If you’re just starting a dividend portfolio, these two stocks are a solid choice:
1. Gilead Sciences (GILD)
A new player in the dividend game, Gilead Sciences is a blue-chop biotech with a promising outlook.
The company is a leader in the HIV sector, launching a new potential blockbuster drug known as Descovy. Gilead also launched two other HIV drugs, Odefsey and Genvoya, which will shore up its top line.
Gilead’s decline in hepatitis-C sales are a concern, but its HIV drugs are a bright spot for the company.
The biotech firm boasts a 14.7% payout ratio. While the ratio is quite low for a biopharma stock, the company should have no issues covering its dividend payout in the future.
2. Starbucks (SBUX)
Starbucks is an $80 billion company with a massive global store base of 25,000. The company plans to boost its number of Chinese stores by 70% over the next three years. Starbucks also develops new supplemental growth opportunities on a regular basis, such as its new partnership with Keurig Green Mountain. The company expects to sell about 1.5 billion K-Cups this year as result of its expanded partnership with Keurig.
Starbucks has quadrupled its dividend over the last six years, offering a 1.46% annual yield.