2 Dividend-Paying Stocks Suze Orman Says To Consider Investing In
Written by
Daisy Carrington
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Jenna Klaverweiden
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When it comes to the markets, the results of the recent election have caused jubilation in some corners of the country and fear in others. In a post-election episode of her “Women & Money” podcast, personal finance expert and bestselling author Suze Orman said she received a record amount of feedback from listeners expressing anxiety over what the results might mean for their finances.
For those everyday investors who have “gone into a shell” and think they “need to take all [their] money out of FDIC-insured deposits … [and] come out of the stock market,” Orman has this piece of advice: Stop it.
“Financially speaking, when you look at things … the stock market has never been as high,” she said, referring to a surging Dow and S&P 500 following Election Day. “Rather than being depressed that everything’s going to crash … you need to be in it to win it … This is not the time to be turning your back on equities.”
In this time of uncertainty, Orman advised investing in high-yield dividend-paying stocks — shares of companies that regularly pay a portion of their earnings to investors in the form of dividends. She said to focus on picks that have enough cash to pay dividends and are quality enough to provide growth as well as income.
During the episode, Orman called out two dividend-paying stocks as showing promise in the year ahead — stock picks that she’s been bullish about in the past.
Also see why Orman says now is not the time to be selling out of the stock market.
Pfizer (PFE)
Pfizer is priced at about $25 a share and pays a dividend of around 6%. Orman feels confident in the drugmaker’s ability to bring in a return on investment. Pfizer has been a favorite of Orman’s since the end of last year, when in a podcast episode she cited it as a bargain buy.
“Pfizer has been absolutely obliterated. When I say obliterated, I mean obliterated,” she said, noting it was selling at less than half of its $54 yearly high at the time. But she said she was confident the stock would return and go back up, and based on her most recent advice, she remains so today.
Whirlpool (WHR)
Orman is also a fan of Whirlpool, priced near $110 per share and paying a dividend yield of 6.3%. This isn’t her first time name-checking the stock. In a recent podcast episode, she called it out as a decent bet, partly because of the constant need to replace appliances after homes are destroyed in natural disasters — which are becoming more frequent.
“There were thousands and thousands of homes in the past two hurricanes and the floods and the tornadoes … that have been destroyed” she said. “When somebody thinks about replacing an appliance … they usually think about Whirlpool.” As a result, she said she thought Whirlpool could be a good pick to get a good dividend yield.
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