Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
Global stock markets are still in a precarious situation, with new waves of the virus emerging in various parts of the world. The optimistic sentiment that was prevalent in the past few months is morphing into more concern for the medium-term future. Some are fleeing towards Bitcoin and gold, but others are also adding to their dividend portfolio.
Stocks with High Dividend Yields
While recovery may not be as quick as expected, analysts still see some companies as doing well going into the future. In a time like this where volatility is high and the future is uncertain, dividend stocks are more important than ever.
Medical Properties Trust is a real estate investment trust (REIT) that invests in healthcare facilities, with properties in the United States, Australia, Germany, Italy, Spain, Switzerland, and the United Kingdom. The REIT focuses on traditional and specialty hospitals. Investments include Steward Health Care and Capella Healthcare.
The company grants a dividend yield of 6.35% with a P/E ratio of 20.48%. It has experienced 5 years of continuous dividend growth. Analysts state that it has done well during the pandemic, collecting 98% of contractual rent in 2020 with 2% collected at a later date with interest.
Broadcom is a US-based designer and manufacturer of semiconductor and infrastructure software products. The firm is known for its deals with other enterprises, and its stock outlook looks good going into the future.
Broadcom boasts a dividend yield of 3.61%, with dividend growth for the past 9 years. With new internet technologies being ready for commercial and enterprise deployment, Broadcom’s business looks good for the short and medium-term future.
Johnson & Johnson is one of the world’s most recognizable brands and most valuable companies. It produces pharmaceuticals, consumer products, and medical devices. It is ranked 35th on the Fortune 500 list.
Johnson & Johnson’s dividend yields are highly reliable, as they come from a stalwart in the market. With a 2.71% yield and a quarterly dividend of $1.01, investors should have reliable dividend stocks in their portfolio — like that of Johnson & Johnson. Multiple analysts have qualified this as a strong buy.
Home Depot is the United States’ largest home improvement retailer, selling tools and construction products. As a staple dividend stock, it has produced cash dividends for 134 consecutive quarters.
Home Depot’s yield is also quite profitable at 2.18% and $1.50 per share. The future looks bright as online sales have been growing considerably and the balance sheet looks strong. Analysts see this company having plenty of inherent value to survive a few tough quarters.
TC Energy is a North American company that runs three core businesses: natural gas pipelines, liquids pipelines, and energy. The company operates energy infrastructure in Canada, the United States, and Mexico.
TC Energy offers a dividend yield of 5.01% with a P/E ratio of 13.17%. A Q2 2020 earnings call indicated optimism for the future, with long-term plans including the advancement of $11 billion worth of projects currently under development.
CVS is a pharmaceutical company/drug store chain that is ranked 8th on Fortune 500. It holds the largest pharmacy chain and total prescription value in the US.
CVS’ current dividend yield is 3.36% with a low P/E ratio of 9.36%. Analysts have touted the healthy cash flow and measures against COVID-19 as reasons to consider the stock. Forecasts have indicated the upside potential could be as much as 56%.
If you’re still on your journey of learning how to buy stocks, then now is an excellent time to start looking at the most popular dividend stocks. They are touted by so many investors for a reason.
It may not give you the returns of high performing stocks, but in volatile periods, these are a potential source of income. When you consider the fact they can help beat inflation and have tax benefits, it becomes essential to have dividend stocks in one’s portfolio.
What dividend stocks would you recommend? What’s your general outlook for the stock market? Let us know in the comments below.
Disclosure:Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions.