When investing, it’s important to make sure your portfolio is diversified. By spreading your money around between stocks, bonds, funds, and other varying investment opportunities, you safeguard your wallet from taking a major hit should one company’s value plummet. The rest of the investments in your portfolio will ensure you’re still making some money.
One way you can diversify is by investing in stocks that pay dividends. These stocks are extra cool because the company will pay you a portion of their current profit, just to say thanks for investing. That means you get a little extra cash that you can either pocket or reinvest.
Each company’s Board votes on how much they’re willing and able to pay in dividends as well as how often payments are made. Most companies have payouts monthly, quarterly, or annually, with some having non-recurring special dividends occasionally.
It’s important to keep an eye on the company, as changes to dividend rates can happen at any time. Many people like to look at a company’s dividend yield–the stock’s annual dividend payout expressed as a percentage–to easily compare companies and predict which will produce high incomes.
You will want to be careful when buying stocks with dividends, though. While they can be a great source of income, there’s no guarantee that a company will continue to provide them. Older companies are usually safer as they have a long history and are well established, but when investing with them you are less likely to see a huge jump in share prices.
High dividend yields could also be a new company’s desperate attempt to draw in investors even when they don’t have the proper cash flow to support the payouts. On top of having to worry about the companies themselves, you also have to be aware of the current dividend tax laws.
If you can find reliable companies with healthy balance sheets and high potentials for continuous financial growth, though, you’ll still end up with a nice profit despite the taxes.
Below are 10 local stocks for companies here in Chester County that pay dividends.
10 Local Stocks That Pay Dividends
1. UGI Corporation (NYSE: UGI)
Headquarters: Valley Forge, PA
Revenue: $6.559 billion (2020)
CEO: John L Walsh (Apr 1, 2013–)
Number of employees: 7,700 (2018)
Founded: 1882
Subsidiaries: AmeriGas, UGI Utilities, UGI Energy Services, LLC, et al
Website: www.ugicorp.com
What they do: A natural gas and electric power distribution company
Dividend: $0.33 per share quarterly
2. Trinseo (NYSE: TSE)
Headquarters: Berwyn, PA
Revenue: $3.776 billion (2019)
Number of employees: 2,100
Key person: Frank A. Bozich
Founded: June 2010
Formerly: Styron
Subsidiaries: A.P.I. Applicazioni Plastiche Industriali SPA, et al
Website: www.trinseo.com
What they do: Global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber
Dividend: $0.08 per share quarterly
3. Ametek (NYSE: AME)
Headquarters: Berwyn, PA
Revenue: 5.2 billion USD (2019)
CEO: David A Zapico
Number of employees: 18,000 (2020)
Founded: 1930
Subsidiaries: Zygo Corporation, GATAN, Dunkermotoren, et al
Key people: David A Zapico, William J. Burke
Website: www.ametek.com
What they do: Global manufacturer of electronic instruments and electromechanical devices
Dividend: $0.18 per share quarterly
4. Teleflex Incorporated (NYSE: TFX)
Headquarters: Wayne, PA
Revenue: $2.595 billion (2019)
CEO: Liam Kelly (Jan 1, 2018–)
Number of employees: 14,000 (2020)
Founded: 1943
Subsidiaries: Z-Medica Corporation, et al
VPs: Michael DiGiuseppe (Corporate Accounts and Respiratory), Petro Barchuk (Financial Planning and Analysis)
Website: teleflex.com
What they do: Provider of specialty medical devices for a range of procedures in critical care and surgery
Dividend: $0.34 per share quarterly
5. AmerisourceBergen Corporation (NYSE: ABC)
Headquarters: Chesterbrook, PA
Revenue: $189.9 billion (2020)
CEO: Steven H. Collis (Jul 1, 2011–)
Revenue: 179.6 billion USD (2019)
Number of employees: 22,000 (2019)
Subsidiaries: World Courier Group, Inc., MWI Veterinary Supply, et al
CFO: Jim Cleary
Website: www.amerisourcebergen.com
What they do: Drug wholesale company that provides drug distribution and related services designed to reduce costs
Dividend: $0.44 per share quarterly
6. Vishay Intertechnology, Inc. (NYSE: VSH)
Headquarters: Malvern, PA
Revenue: $2.668 billion (2019)
CEO: Gerald Paul (Jan 1, 2005–)
Founder: Felix Zandman
Founded: 1962
Subsidiaries: ECOMAL S.r.O., Vishay Dale Electronics Inc, et al
Website: www.vishay.com
What they do: Manufacturer of discrete semiconductors and passive electronic components
Dividend: $0.095 per share quarterly
7. CubeSmart (NYSE: CUBE)
Headquarters: Malvern, PA
Revenue: 643 million USD (2019)
CEO: Christopher P Marr (Jan 1, 2014–)
Founded: 2004
Subsidiaries: U Store It LP, CubeSmart, L.P., YSI XIV LP, et al
Website: www.cubesmart.com
What they do: A real estate investment trust that invests in self-storage facilities
Dividend: $0.34 per share quarterly
8. Omega Flex, Inc. (NASDAQ: OFLX)
Headquarters: West Whiteland Township, PA
Revenue: $111.4 million (2019)
CEO: Kevin R Hoben
Founded: 1975
Subsidiaries: Omegaflex, Ltd., Exton Ranch, LLC
Chairman: Kevin R Hoben
Website: www.omegaflex.com
What they do: Manufacturers and sells corrugated flexible metal hose and braid products globally
Dividend: $0.28 per share quarterly
9. West Pharmaceutical Services, Inc. (NYSE: WST)
Headquarters: West Whiteland Township, PA
Revenue: 1.85 billion USD (2019)
CFO: Bernard J. Birkett
Number of employees: 8,200 (2019)
Founded: 1923
Subsidiaries: West Pharmaceutical Services Group Ltd, et al
Website: www.westpharma.com
What they do: Designer and manufacturer of injectable pharmaceutical packaging and delivery systems
Dividend: $0.17 per share quarterly
10. Triumph Group, Inc. (NYSE: TGI)
Headquarters: Berwyn, PA
Revenue: $2.900 billion (2020)
CEO: Daniel J. Crowley (Jan 4, 2016–)
Number of employees: 14,309 (2017)
Founded: 1993
Number of locations: 64
Subsidiaries: Triumph Controls, Vought, LA Gauge Co. Inc., et al
Website: www.triumphgroup.com
What they do: Supplier of aerospace services, structures, systems and support; engineers, designs, and manufactures aircraft components, systems and accessories
Dividend: $0.04 per share quarterly
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Thank you for the tips…