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My Top 5 Dividend Stocks To Buy In A Recession



I’m going to be sharing with you the top five dividend stocks that I am buying right now in a potential recession.

And I personally see these as great investments and stocks that I am accumulating shares of based on the current market conditions and current market prices. Now, if you’re not familiar guys, earlier this year, I started a new series documenting building a dividend stock portfolio up to a $100,000 value. And initially, I was investing just $500 per week, starting back in January, but as the market began to go into a sell off, I began funneling more and more money into the market because I saw this as a great buying opportunity to add shares at discounted prices.

So what I’m gonna do today is I’m gonna show you the top five dividend stocks I’m buying right now, and I’m also going to do a full portfolio update, showing you exactly what I’ve been purchasing, what my cost basis is, whether or not I am up or down, and answering a lot of other questions you guys have about my personal investment portfolio. Now in the month of March, I ended up investing a pretty substantial amount of money and that was about $21,000 in the market. And as I said earlier on this year, I was investing just about $500 per week.

So I substantially ramped up my contributions based on the market going into a sell off. And going forward in the month of April and likely the month of May, I will be investing just $2500 per week or 10,000 per month, based on what the market is doing. Of course, if it goes up, I’ll probably invest less. And if it goes down more, I’ll probably invest more. And the focus of this portfolio is dividend investing, but you will see in a minute here, I have purchased a couple of battered companies that had to suspend their dividends because I see potential here for asset appreciation or buying low and selling high at a later date. Now I just have to mention real quick, guys, that this video here is for entertainment purposes only. I am not a financial advisor and you should always do your own due diligence before buying or selling any stocks. But that being said, guys, let’s jump into my dividend stock portfolio right now.

Alright guys, so here we are inside of my dividend stock portfolio. And as you guys can see if you’ve been following along in this series, I have quite a bit more in this portfolio than I did during the last update. And today is Monday as of recording this video and I have an additional $2500 that is going to be invested across this portfolio later in the day today. But as you can see, I am down quite a bit, down about $10,000 in this portfolio, and in a little bit here I’m gonna break down my holdings and we’ll take a look at what I’m up in and when I’m down in and my gain overall or loss in this case on this investment portfolio. But that being said, let’s jump into stock number one, the largest position in this portfolio and talk about that right now.

So my largest position in this portfolio is General Electric, but I’m actually not gonna count it towards the dividend stocks I’m buying right now, because I haven’t added shares to this stock in quite some time. I actually transferred shares of General Electric into this portfolio, and I bought the majority of these shares back in late 2017 and early 2018, and I haven’t purchased any shares of General Electric since then. So as you can see here, down on the bottom left, I currently own about 1074 shares at an average share price of 1415 per share.

So I am down massively in this position. This up here is the money weighted return, and that is showing that I am down 43%. But if we look at the time weighted return, which is the one we are more familiar with, we’ll look at that in a little bit, I am down even more on this position. But again, since I’m not regularly adding more money to the stock, I’m actually going to skip this one and not count it towards my top five. Okay, so next up, we have the number one dividend stock I am purchasing right now, and that is National Grid, which is a company a lot of people are not actually familiar with, unless you live in the northeast or in parts of the UK. And this is a large power utility that serves customers in the northeast, as well as in parts of the UK. Now, the reason why I’m buying a utility stock right now is because this is a very durable, defensive investment, and their revenue and earnings are pretty consistent regardless of the underlying economy. It doesn’t matter if we are in a bull market or a bear market.

For the most part, people are still paying their utility bills. Now, one thing National Grid might be up against in the short term is they are doing the right thing right now and they are allowing customers to rack up a past due balance without shutting them off. And it’s funny because this was actually my old job. I used to be a past due bill collector, and I would go door to door and that’s what I would do is I would ask people for payment, or I would have to shut their power off. But that being said, it’s a stock I’ve held for a number of years, I ended up selling the majority of my shares back in 2019, I sold a lot of my stocks for a remodel project on my property for an investment property. But I began buying into more shares of this stock when the uncertainty hit the market here. It’s a great durable stock to own during times of uncertainty. So next up here is my third biggest position in this portfolio, and that is Boeing, but I’m actually not going to count this because Boeing suspended their dividends as a result of the financial crisis they are currently involved with. So Boeing is a stock I am purchasing a lot of right now.

I also have 10% of my money flowing into this stock right now, but because they’re not currently paying a dividend, we’re not gonna count this as one of the dividend stocks I am buying. The reason I’m buying this stock in particular, is because I believe there is big potential here for asset appreciation, because this stock used to trade in the 300 to $400 per share range, and now they are down to $136 per share. So despite the fact that we do see a dividend yield here of 6.6%, they did suspend dividend payments going forward. So this is no longer a dividend payer. So next up, we have IBM which is a dividend payer and it’s a stock I am regularly accumulating shares of, basically 8% of my money is going to go into the rest of the dividends stocks we are going to mention in this list. Now since they are a dividend payer and since I am regularly adding money, I’m counting this as the second biggest dividend stock I am currently accumulating shares of in my portfolio.

Now, IBM is one of these companies that a lot of people are just not really sure about what it is they are doing right now, and it’s because they had this legacy hardware business that they had to shed. And really the main thing they are involved with right now is enterprise level cloud computing. And right now, in my opinion, I see this as a very undervalued company, in terms of the technologies they’re involved with and I think five to 10 years down the road, this company is going to have a much larger footprint in cloud computing, and be up there with the likes of Amazon with Amazon Web Services, and Microsoft in terms of cloud computing. So I think it’s a great stock in terms of the technologies they’re involved with. The reason why I am down quite a bit in this stock is because I started buying shares back in January, before we began seeing the stock market crash, slash stock market correction that we have been. So it’s inevitable that the share price has tumbled quite a bit, but I am dollar cost averaging into more shares of IBM currently. So next up here we have a company most of us are familiar with and that is Lowe’s.

They are a massive hardware company. And I just started buying this stock in the month of April and they are now the third largest dividend paying stock in this portfolio. And this is a stock that I am currently up in and I’m up a pretty substantial amount here. As you can see on the bottom left, I own about 31 shares at a cost basis of 7212. And as of today, the stock is currently trading at around $87 per share. So I’m actually up about $460 in this stock or 25.43%. The reasons for me buying this stock were pretty simple. It is a dividend aristocrat and they have been growing their dividends for 57 years consecutively. So I see it as a great company to own. And it’s a really good entry point right now, in my opinion, based on where the share price is at currently. And so when I saw that stock go into a freefall with the other dividend stocks I added recently, to me, it was a no brainer to begin accumulating shares of Lowe’s when they began tumbling.

This is also a somewhat recession proof stock here because although many people do spend money on home improvements in terms of updating their kitchens or bathrooms or things like that, a lot of people still are going to spend money on unnecessary repairs to their aging homes, regardless of the underlying economy. If you have a leaky faucet, you’re gonna probably fix that because of the damage that could happen regardless of if we are in a bull market or a bear market or a recession or whenever the underlying economy is doing. So they are definitely going to be hurt in the short term here as less people are spending money on home improvements. But I will say this, guys, yesterday I was driving around for something to do just to kill some time and I saw the Lowe’s parking lot and I have never seen it more full in my life. I think a lot of people because they are stuck at home with nothing to do are starting out their spring yard work or spring projects. And I just see this as a company that’s going to do extremely well in the years going forward. And I saw this as a great entry point, and I’m very happy to say that I’m already up quite a bit in this stock.

Okay, next up the fourth biggest dividend paying position that I’m regularly accumulating shares of is Coca-Cola, and it’s a stock I recently started purchasing. So as a result, I am up quite a bit in this stock up around 17% on a money weighted return, or $334.45. Now Coca-Cola is another dividend aristocrat and they have also been growing their dividend every single year for 57 years. It is one of Warren Buffett’s favorite investments out there. And in my opinion, guys, Coca-Cola is one of those stocks where anytime it goes on sale, you don’t ask questions, you just buy the stock, because they’re such a high quality investment and such a well recognized brand. I’m not gonna say too much more about Coca-Cola, guys, it’s a diversified beverage company with a global footprint serving hundreds of different countries. And I saw this as a screaming buy when this stock began selling off back in the month of March. And then lastly, guys, number five, my fifth biggest dividend position right now is Walgreens Boots Alliance, and this is a stock again, I started purchasing back in January. So because I began purchasing shares earlier this year, they did go into a sell off with the broad market. So I am down about 20% in this stock right now.

Now this is a pretty interesting company because you own a number of different companies within it. You own Walgreens, you also own the Boot stores as well as Alliance healthcare. And it’s essentially a merger of these three companies under their parent company, Walgreens Boots Alliance. So you get exposure to the retail pharmacy market here in the US with Walgreens, Boots is a very popular beauty store over in the UK that sells makeup and other beauty products, and Alliance is a diversified health care company. So in my opinion, I saw this as a great stock to own. This was well before the virus began spreading, but I would actually expect Walgreens to do pretty well right now because they are deemed an essential business and a lot of people were going out looking for hand sanitizer and other first aid type products.

So I would bet that this company made out pretty well based on the current market conditions. As far as that dividend goes, they have been growing that dividend every single year for 44 consecutive years and so long term, I think it’s a great company to own. Obviously, in the short term, I am down a little bit just based on what I began buying. But I have no doubts about the success of this company long term, especially given the current market conditions. Alright guys, so those are the five biggest dividend paying positions in my portfolio that I’m currently accumulating shares of. Now let’s talk about the other stocks that are currently in this portfolio. And if you look up top here, you can see I’ve invested $52,208.04, and I currently have a portfolio value here of just above 43,000. So I am currently down around $9,000 or 17.46%, largely due to the broad market correction. But that being said, guys, let’s go into the stocks right now, starting from smallest to largest. I do own shares of American Airlines. I have 150 shares and I am down 31.67% on those shares. I have a small position here in Apple that I’m just about breakeven on. I have a small position in Microsoft of about 1300 dollars, and I am up about 9% on this position. Delta Airlines is another airline stock within this portfolio and I am down about 27% on this stock right now. As far as airlines go, it’s a total gamble right now, we know that Warren Buffett just unloaded a bunch of airline shares. So these could go down massively or they could go up. There’s really no telling what’s gonna happen with these stocks right now.

3M is an interesting play right now because they are the largest provider of medical masks. So based on the current market, they may do pretty well here based on ramping up production of medical masks, but I began purchasing this stock back in January, so I am down about 20%. Emerson Electric is a large engineering company involved in process, automation, and manufacturing. It’s another dividend aristocrat I started buying in March and I am up about 20% in this stock right now. We already touched on IBM and Walgreens Boots Alliance, then we have Dunkin Donuts Dunkin Brands group. I think this is a great stock to own long term.

I have been waiting to buy this stock for about three years. And during this market sell off, I began buying shares and I’m currently down just about 11% in this stock. We already touched on Coca-Cola and Lowe’s, I’m up quite a bit in those stocks. Then we have GPC, Genuine Parts Company. I’m down just about 1% in this stock. This is the parent company that owns NAPA Auto Parts, which is a good defensive investment during a time like this because more people are gonna hold on to their older vehicles resulting in more automotive repairs. Then we have Boeing which is not currently a dividend payer but I am up about 4% in this stock. Next we have National Grid, the number one dividend stock I’m purchasing right now. And lastly, General Electric, which is a position I’ve had since 2017. And this is where the majority of the losses of this portfolio are currently seen. As you guys can see here, I am down about $7500 in General Electric based on bad timing of purchasing. And if you look at my overall portfolio, I’m only down $9100 right now.

So the majority of my losses right now are within General Electric, but it’s a position that I’m just holding on to because I think long term, the company should do all right. And if we actually take a look at the stock chart here, my cost basis is about $14 per share. And before the market went into this nasty sell off, I was actually approaching a point where I was almost near cost basis, around $14 per share, because in February, the stock was trading at 1316. So I think after the economic crisis is over and things return to normal, I will have an opportunity to sell shares of General Electric at or near my cost basis, or I may just hold on to this stock to see how it performs over the long term. But this is by far the worst investment I have ever made, and I’ve been bagged holding shares of General Electric since late 2017 to early 2018. So going forward for the month of April, I anticipate investing the normal $2500 per week, so that should be $10,000 over the course of this month, unless of course I do see other opportunities to add more money taking advantage of any sales or dips.

So anyways guys, that’s gonna wrap up this video that is an update on my dividend stock portfolio. Let me know what you guys think down in the comment section below. Do you agree with these picks? Do you disagree? I would love to hear what you guys think. If you wanna learn more about dividend investing and in particular M1 Finance which is the commission free brokerage I use for my dividend portfolio. I put together a free 30 minute video training, I’m gonna link up down in the description below, that walks you through step by step how to start a dividend portfolio, as well as how to use the M1 Finance investing platform. And M1 Finance is my number one pick for dividend investing. That being said, if you’re not interested in dividend investing and you’re more of an active trader, there’s also a link down there to sign up for Webull which is my number one pick for people looking to trade stocks commission free.

And if you sign up for Webull, you’re gonna get one free stock just for opening up a brokerage account. And if you fund the account with $100 or more, you’ll get a second stock completely free. So if you wanna grab two free stocks, or check out that free training on M1 Finance that’s gonna be down in the description below. But thanks so much for watching guys, subscribe and hit that bell if you haven’t already,

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