Dividend Stocks: JPMorgan Chase Among Winners for 2015

Dividend stocks are considered to be some of the best investments for retirement income because the stocks pay out regularly without depleting the amount of your investment. The best stocks for dividends are stocks that pay dividends consistently for each share held in the person’s portfolio. A recent report from Kiplinger has named JPMorgan Chase (NYSE:JPM) as one of the best dividend stocks for 2015 based on the following details. Financial stocks will be an investors best bet for stocks that pay regular dividends this year. Data provider FactSet estimates payouts from S&P 500 stocks will increase by just 7.7 percent in 2015, but financial firms are predicted to raise dividends by an average of 13.2 percent, currently the most of any sector. Currently, JPMorgan (NYSE:JPM) has a one-year total return of 8.8 percent, well above the S&P 500’s yield for the same period.

The best dividend stocks for retirement investing have payout ratios (dividends paid out as a percentage of earnings) of 50 percent or less, providing room for more hikes. The payout ratio is determined by dividing the current dividend rate by estimated 2015 earnings per share. JPMorgan Chase currently has a payout ratio of 27 percent, using less than one third of earnings to pay dividends to stockholders. JP Morgan (NYSE:JPM) is an outstanding company that ranks among the best in each business and remains popular with customers, a good indication for the future of the company. JPMorgan has a history of raising distributions and a solid earnings outlook for 2015. Revenues at the bank were up 5 percent in the third quarter compared with the previous year, and loans increased 7 percent over the amount reported in the same quarter last year. Wall Street analysts believe that JP Morgan stock is on the move and has momentum. In the past three months, the company’s stock has gained 13 percent.

Source: IRA Market Report

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