Hi I’m Jimmy in this video I’m going to walk through three of the best dividend stocks that I could find that have run into issues recently or run into negative news and that’s hurt their stock for one reason or another. Now I actually came up with these companies because I’ve been out looking for undervalued dividend stocks that look like they could do well in the next couple of years. Now I set up this video a bit different and that I actually I’m ranking these three companies according to their struggles or according to how much pullback they’ve had from least to most and in theory that would also imply risk and upside as well. And at the end of the video I’ve actually got two bonus companies two bonus dividend paying stocks that almost made this last but came just short. Okay let’s get started. So coming in at number three is one of my favorite companies that has struggled a bit in the news recently and that is Home Depot ticker symbol HD. So over the past year. Home Depot stock is up just short of 11 percent which isn’t too bad at all. But the concern with Home Depot is that they’re very steady revenue growth. May begin to slow over the next couple of years. We haven’t seen many signs of it just yet but when we jump over Home Depot’s stock chart well here we can see that in this area some analysts came out and said that the industry upside may be limited. And as we could see the market didn’t seem to like it all that much. Then they also ran into some effects with hurricanes. There were some concerns about their impact how they be impacted by tariffs. Then right here. Well once again earnings came out and there was some disappointment as to the outlook of Home Depot stock. Then earnings came out again down here in this area most recently with a pullback in the stock market. Home Depot is down once again. Now I recognize that there are concerns over a recession in the near future. And if the economy were to go into a recession in theory that would trigger less remodeling and it would also hurt Home Depot’s revenue. But even if that were to happen where the the Federal Reserve has recently lowered interest rates and bond yields have continued to fall. So in my mind this is likely to keep the housing market at least somewhat active as mortgage rates are likely to stay low for at least a little bit longer as long as that happens. I expect for Home Depot’s stock and revenue to do fairly well. And given that they’ve upped their dividend fairly consistently over the past few years and they have a dividend yield of more than two and a half percent right now that’s based on the current dividend rate. Well even if a recession does come and there let’s pretend that their revenue does begin to slow I would expect for it to begin to pick up shortly after the recession ends. And any long term investors would do quite well. And in the meantime we get to get paid with their dividend for holding their stock. OK. On to number two on our list Chevron ticker symbol CVX. So here’s the situation with Chevron. So Chevron had made a bid to buy Anadarko Petroleum and a Darko agreed. And this would push Chevron up to the same level as Exxon Mobil as far as production is concerned by the way the announcement of this deal happened right in this area. And eventually what happened was Anadarko backs out of the deal because they’ve got a better offer from Occidental Petroleum and a Darko then has to pay a fee to Chevron for backing out of the deal. And clearly that adds to Chevron’s bottom line at least temporarily on a one time basis. Well all this is interesting and all but all this action in the middle here doesn’t really explain why Chevron stock is still down over the past year. Well a lot of that can be explained by the price of oil. This is the price of oil going back the past few years. And as we could see oil is weighed down from the 2014 levels and it’s even down from October of last year levels. So clearly this is an issue since in theory lower oil prices would mean lower profit margins for energy companies in general. OK. But where is the opportunity. Well Chevron owns one of the top portfolios of properties in the Permian Basin which is one of the best places to drill for oil. Now this is allowed for Chevron to generate a steady amount of free cash flow over the past few years. And this has funded both their cash dividends and their stock buybacks. And personally I believe that even if oil stays stuck in the 50 or 60 dollar range. Well I would expect for Chevron’s dividend to remain quite consistent since it’s funded by free cash flow. And that should help their stock their buyback program would also help their stock price which has trailed the S&P 500 over the past year. OK now we move on to our number one company and then I’ll touch on the two runner up stocks that didn’t quite make this list. So the number one company on our list is ad v ticker symbol. ABBV now AbbVie is down more than 20 percent over the past year and their main problem is actually quite large. So ad vs a pharmaceutical company. And as we know oftentimes a pharmaceutical company can be very reliant on the success of a single product. And AbbVie is no different. So this is a chart of revenue generated by product during 2018. And as we can see there Humana product dominates their revenue. Now Humana is supposed to faced direct competition in the U.S. when their patents went up in 2023 but things aren’t all great until then when we switch back to their stock chart. Well we may first notice that AbbVie stock has had a rough go of it over the past year or so. Now I bring this up because this drop right here. Well this drop happened after Novartis is drug which is very similar to Humana. It won approval in Europe and then this drop here happened when AbbVie came out with earnings and no surprise there Europe business showed sign of weakness as far as Cameron is concerned. So ad v recently announced the acquisition of Allergan. When did they announce it right here. So we’re still a ways away from this deal being. Finalized but once this acquisition is finalized. Well I believe it would help diversify advise portfolio away from the dominance that Humana has now. Based on the 2018 revenue if they combined right now. Well Humana would still represent about 38 percent of total revenue but that’s better than what it represents right now. Now I still expect for AbbVie stock to remain fairly volatile over the next couple of years. But right now they’re trading at a forward PE of less than seven acts which tells me that during this time period it’s possible that the stock market oversold them a bit due to the flurry of bad news that they’ve received. And this brings us to what I really like about AbbVie at this point right now at these dividend yields is about six point seven percent going off their last given amount of a dollar 7 per quarter. Now this is a chart of the history of at these dividends and clearly it’s been rather good. So I believe that this has the potential to keep in enough long term investors for Abdi to turn this thing around. And I would expect for their stock to begin to recover over the next couple of years. So at the end of the day I believe that at the Chevron and Home Depot are going to have the potential to have a net a strong next few years. And the fact that they pay solid dividends could help protect them if the stock market if the economy were to struggle in the next few years with interest rates being as low as they are I believe that strong dividend paying stocks like these companies are likely to do well because the yield will be attractive to many investors. OK now I know I mentioned to dividend paying stocks that I thought were good runner ups to this top three list. So the first of those two companies is Lockheed Martin ticker symbol LMT. Now they have a dividend yield of a bit less than two and a half percent and I elected not to go with Lockheed Martin because in my eyes their stock isn’t offering the same value as the other three companies although I’m a big fan of what they’re doing and they’re a solid defensive holding. And then finally we have Medtronic ticker symbol MDT now Medtronic has a dividend yield of a bit over 2 percent. And although I think that Medtronic has a decent value right now and they have some potential upside I actually like the yield and potential of Avi a bit better and since they’re both in the same industry I thought it made sense more sense to go with Advair over Medtronic but I do think Medtronic looks like a fairly stable company but what do you think. Do you like these top three or top five dividend paying stocks. Do you think that the two runner ups that I had belong in the top three. Do you think a different company blogs in the top three. What do you like that I didn’t mention. Please let me know what you think of the comments below. If you haven’t done so yet please hit the subscribe button and hit the Like button it really helps this video and the channel. I really appreciate it. Thank you for stick with me all the way to the end of the video. I’ll see in the next video. Thanks.