We are currently in a bear market, which is the best time to buy. This dividend stock I will be telling about is a growth stock and a dividend stock. The stock is JP Morgan, it has a 52 week high of 141 and has fallen as low as 76 during the recession. Its yield has ranged from 3.5% to 4.7% during the recession. The stock has potential to grow the dividend a lot more. Its payout ratio is 32% and they have a EPS of 10.72 while having a dividend of 3.60. This creates opportunity for huge growth of the dividend.
The stock also is one of the biggest banks in the world and I believe are the most newer business model bank. This will allow them to grow as banking moves more to the digital side. This stock is a great stock to hold long term or even forever. As you hold the stock hopefully they will continue to grow the dividend, which will cause your yield on cost to go up substantially over time.
The stock is currently at 91 but I believe in the next month they will continue to go down maybe to the low 80s or in the 70s. If they drop into the 70s this will cause their dividend to go up to about 5%. This will create a great buying opportunity and will give you some great passive income. If you are going to invest in this stock you need to be a long term buyer, as their are many better short term growth stocks.