Picking which stocks to have in your portfolio is certainly not as easy as some make it seem. For instance, while dividends can seem great, if a company tanks, they never make up for the losses. So, let’s take a look at incredibly solid companies with high dividends, for the best dividend stocks you can rely on…
Verizon, one of the most popular blue-chip telecommunications companies on the stock market, not only has a solid history, but also has a fantastic outlook. Most recently, the company started creating one of the nation’s largest 5G networks to compete with its rivals. Meanwhile, with a dividend pay of 4.5%, it paid out $10.1 billion in dividends in just a year!
“Verizon represents one of the cleaner stories across cable and telecom services given its leadership position in wireless and continued strong execution, with relatively less exposure to secularly challenged PayTV, media/advertising, and business wireline revenues as compared to some of its peers,” stated Deutsche Bank analysts, who are currently telling investors to hold on to Verizon stock.
Realty Income (4.5%)
Realty Income calls itself “The Monthly Dividend Company” for a great reason – investors get their payments every month, and the company’s never late. Meanwhile, never deviating from a yield of 4.5%, Realty Income has been safely drifting through the coronavirus crisis. While others are struggling, its vast portfolio, including dollar, drug, and convenience stores, has kept Realty Income in the green.
“The company has one of the sector’s strongest balance sheets, in our view, lowest costs of capital, and pays a consistent and growing monthly dividend,” Stifel analysts said. After earning 91.5% of July rent, nearly unheard of during COVID, it has paid out a dividend for 601 months in a row. So, investors don’t have to worry about their income!
While many companies have struggled during the coronavirus, health insurance companies have obviously been doing fine. And among those staying healthy, so to speak, is MetLife. “We think the company retains less COVID-19 related mortality exposure than peers, given an average policyholder age of 48 and approximately 80% of in-force coverage at year-end 2019 was group life,” posted Credit Suisse, Wall Street expert.
Currently, nine of the major analyst companies have Met Life at a Strong Buy or Buy, while the other five have it at a Hold. Meanwhile, MetLife’s expected stock growth of 15% and free cash flow puts it into the safe high-yield state, paying out plenty of dividends.
South Jersey Industries (4.9%)
Some might balk at South Jersey Industries, due to their 27% profit loss this year. However, know that the situation is expected to stabilize in the future. “The company reported that it experienced no material financial impact from COVID-19; looking forward, it reaffirmed its 2020 guidance. We note the yield at just under 5% is very attractive for growth & income investors,” stated Janney. Wall Street also has a positive outlook on SJ Industries, assuring investors that its earnings will grow at 9.4% a month. As a result, two out of nine major analysts rate the company at Hold, one at Sell, and one at Strong Sell. Only three gave it a Strong Buy.
The best way to see where to invest is to check the DEVCON system from time to time. The system rates dividend stocks based on cash flow, earnings, stock buybacks, and other essential factors.