Pretty much anytime is a good time to buy the right dividend stocks. But some times are better than others.
Continue Reading Below
Now appears to be a great time to buy three particular dividend stocks: Ford Motor Company (NYSE: F), Qualcomm Incorporated (NASDAQ: QCOM), and Welltower Inc. (NYSE: HCN).All three of these stocks boast high dividend yields. And good things are happening for each company. Here's why Ford, Qualcomm, and Welltower are three top dividend stocks you can buy right now.
Image source: Getty Images.
Ford: A new driver
It hasn't been a great 12 months for Ford. The big automaker's stock is down by a double-digit percentage. Ford recently announced plans to cut around 1,400 jobs this year. And the company replaced its CEO. That makes for plenty of turmoil, but it also gives investors a reason to take a hard look at the stock.
New CEO Jim Hackett isn't inheriting as big of a mess as some of the headlines might indicate. Ford posted stellar sales and earnings in 2015 and really good numbers last year. The company's first-quarter performance was dismal, but one quarter doesn't mean a whole lot in the big scheme of things.
Continue Reading Below
While it's too early to know how Hackett will do at the helm, I think his hiring gives investors a reason to buy. Hackett did a great job turning things around at SteelCase. He's also very familiar with Ford's business, serving on the board of directors since 2013.
Ford's dividend continues to look quite appealing. Its yield stands at 5.52%. The company is currently using less than 64% of earnings to fund the dividend program. With this solid dividend and a new, capable CEO in the driver's seat, Ford looks like a buy in my view.
Qualcomm: Bad news presents good opportunities
There has been plenty of bad news for Qualcomm so far in 2017. The mobile-chip giant became embroiled in litigation with Apple (NASDAQ: AAPL) over patent royalty issues and faced allegations from the Federal Trade Commission (FTC) over anti-competitive practices.
However, things have started to look up for Qualcomm recently. J.P. Morgan analyst Rod Hall upgraded the stock in anticipation of an upcoming closure of Qualcomm's pending acquisition of NXP Semiconductors. The deal would allow Qualcomm to reduce its dependence on the smartphone market and make it the biggest automotive-chip maker in the world.
Qualcomm still faces challenges. Although the company hopes the FTC will drop its antitrust lawsuit, the Apple litigation certainly won't magically go away. Still, closing of the NXP acquisition could go a long way toward relieving investors' anxieties.
There are a couple of silver linings to Qualcomm's woes as well. Thanks to the company's issues, the stock's valuation is attractive, with a forward earnings multiple below 15. Qualcomm's dividend yield has also been driven higher and now stands at 3.95%.
Welltower: A positive change in direction
Unlike Ford and Qualcomm, Welltower has enjoyed a pretty good year thus far in 2017. Shares of the healthcare real estate investment trust are up thanks in large part to Welltower's continued repositioning of its core portfolio.
In November, the company announced that it planned to shift its portfolio away from long-term and post-acute-care (LTPAC) properties and more to private-pay healthcare real estate. This move was positive in two key respects. First, private-pay healthcare, such as senior living communities, tend to be more profitable than LTPAC properties are. Second, the sale of assets helps Welltower reduce its debt load.
There is some short-term pain associated with the portfolio repositioning, though. Welltower's first-quarter funds from operations decreased from the prior-year period because of asset sales stemming from the strategic shift. However, the company's senior housing portfolio performed well during the quarter.
Welltower's change in focus is good for long-term investors. So is the company's dividend. Welltower currently claims a solid dividend yield of 4.75%.
10 stocks we like better than Welltower
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Welltower wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of May 1, 2017
Keith Speights owns shares of Apple and JPMorgan Chase. The Motley Fool owns shares of and recommends Apple, Ford, and Qualcomm. The Motley Fool recommends NXP Semiconductors and Welltower. The Motley Fool has a disclosure policy.