Morningstar's Top 10 Dividend Stocks

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Morningstar has released their 10 best dividend stocks. Here's the list and a 🧵 with a short take on each one:

🛢️ExxonMobil $XOM • Dividend yield: 3.3% • 5-yr DPS CAGR: 2.4% Solid, diversified oil company with a fortress balance sheet. Worth a look if you're willing to accept the volatility of oil prices. Trading towards its highest yield in 2 years

💊Johnson & Johnson $JNJ • Dividend yield: 3.1% • 5-yr DPS CAGR: 5.6% One of the most diverse healthcare companies out there. Uncertainty around litigation, drug patents expiring and new ones in development create the chance to buy a Dividend King at a relatively high yield:

🛢️Chevron $CVX • Dividend yield: 4.2% • 5-yr DPS CAGR: 6.4% Another diversified oil company with a great balance sheet. Chevron's management has shown discipline in spending and is working to lower their cost of production Trading at a relatively high yield

💊 Merck $MRK • Dividend yield: 3.2% • 5-yr DPS CAGR: 7.4% Less diversified than J&J, Merck is all about developing and selling new drugs. Most of the growth is from Ketyruda which is patent protected until 2028. The risk lies in Merck continuing to develop new drugs

🥤PepsiCo $PEP • Dividend yield: 3.1% • 5-yr DPS CAGR: 6.8% Second in soft drink sales to Coke and a leader in snacks Main risks: increasing health consciousness and falling volumes A Dividend King at a relatively high yield:

😷Medtronic PLC $MDT • Dividend yield: 3.3% • 5-yr DPS CAGR: 6.0% A medical device maker of things like pacemakers and insulin pumps Medtronic seems to be returning to growth with new products. The tailwind of increasing chronic diseses will also help.

🍫Mondelez $MDLZ • Dividend yield: 3.2% • 5-yr DPS CAGR: 10.4% Another global leader in snacks. Mondelez has been improving the effiency of its business and returning lots of cash to shareholders Main risks: healthy eating shifts, high cocoa prices, obesity drugs

🛢️Schlumberger $SLB • Dividend yield: 2.6% • 5-yr DPS CAGR: -11.7% The premier global oilfield-services company Positive: SLB has the majority of the digital services market, with sticky revenue and upward trends Negative: the exploration cycle is slowing down, dividend cut

🧪LyondellBasell $LYB • Dividend yield: 7.3% • 5-yr DPS CAGR: 4.8% A leading petrochemical company The North American operations have access to low-cost feedstocks; the international businesses do not Risks: commodity business subject to macro conditions, debt

🥣General Mills $GIS • Dividend yield: 3.8% • 5-yr DPS CAGR: 4.0% A cereal, snacks and pet food company Positives: Strong pet brands (Blue Buffalo), leading share in several categories Negatives: Falling cereal consumption, premium brands subject to consumers trading down

The most interesting companies in this list if you ask me? 💊Johnson & Johnson $JNJ 🛢️Chevron $CVX 😷Medtronic PLC $MDT 🍫Mondelez $MDLZ 🧪LyondellBasell $LYB

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