2 Top Dividend Stocks to Double Up on Right Now

Doubling up connected stocks erstwhile their prices driblet sounds exciting. After all, it has the consciousness of gambling and the imaginable of winning big.

But you should defy the impulse to put heavy simply due to the fact that a company's stock terms has fallen. Remember, gamblers don't marque wealth successful the agelong run. But astute semipermanent investors tin marque outsize profits.

So, however bash you guarantee you're not wasting your money? One mode is to look astatine dividend-paying companies whose stocks person dropped owed to wide economical concerns, but whose underlying businesses stay sound.

Royal Caribbean Cruises (NYSE: RCL) and Lennar (NYSE: LEN) acceptable the bill. They're cyclical companies whose results fluctuate with the economical cycle, but investors tin confidently cod dividends portion waiting for their banal prices to recover.

1. Royal Caribbean Cruises

Even though consumers person faced challenges stemming from persistently precocious prices and concerns astir their jobs, Royal Caribbean Cruises has posted beardown results.

First-quarter gross accrued 11% twelvemonth implicit twelvemonth to $4.5 billion. And absorption has akin expectations for the year, projecting 10% gross growth.

However, if the system importantly weakens, adjacent Royal Caribbean's higher-income passengers volition consciousness the effects. That could wounded revenue, and if lipid prices stay elevated, substance costs volition besides dent profitability.

Investors look acrophobic astir this possibility. They've sent the shares down 4.8% this twelvemonth (through May 1). During this time, the S&P 500 scale has gained 5.6%.

Still, should this economical script travel to pass, request should travel roaring backmost arsenic radical clamor erstwhile again for Royal Caribbean cruises erstwhile the system improves. Meanwhile, Royal Caribbean precocious raised its quarterly dividend by an eye-popping 50%, to $1.50 a share.

At the caller rate, the shares person a 2.3% dividend yield. That's much than treble the S&P 500's 1.1% yield.

With a payout ratio of 26%, investors tin instrumentality comfortableness successful the information that Royal Caribbean tin easy spend the payouts, adjacent successful the lawsuit of a crisp net decline.

2. Lennar

Lennar has been a homebuilder for much than 70 years. It builds single-family homes targeted astatine first-time, move-up, progressive big and luxury homebuyers. Historically, it's known for targeting first-time and move-up buyers.