5 Safe Gridlock-Friendly Dividend Stocks For 2021 . Don't be. Oshkosh (OSK, $78.84) isn't the kids clothier that likely popped into your head. Now that it has built a large e-commerce platform, Walmart is positioned to perform relatively well even as multiple large cities go on lockdown due to the coronavirus. We believe Hormel has a highly defensive business model and should continue to generate steady profits, even in a recession. Safehold pays out 73.03% of its earnings out as a dividend. "BC saw surging demand in May and June for new boats and engines as well as 'record June retail for almost all our boat brands,'" writes Wedbush analyst James Hardiman (Outperform). These are the best dividend stocks for 2021. Life Sciences revenue grew 6.4%, while Diagnostic Systems revenue increased 5.3% due to a strong start to flu season. Third, safe stocks have high dividend yields. And through it all, Reinsurance Group has done a spectacular job of growing the payout. Its most recent dividend increase was a 2.3% raise in March 2020. A Safe ETF Dividend Yield: Invesco KBW Bank ETF (KBWB) – 4% dividend yield Invesco KBW Bank ETF (KBWB) provides one of the safest ETF dividend yields. Fortis is a massive Canadian utility provider, with service operations across multiple continents. Despite being relatively new to paying dividends, Apple has the potential to become one of the best technology companies in which to invest if you are thinking long-term. No dividend is completely safe. However, Colgate-Palmolive continues to perform well on the top line. MCK raised its payout just 2% to 42 cents per share in July, but it still boasts a nice 8.8% compound annual dividend growth rate over the past decade. That 50 cents is just 19% of the $2.65 per share UFP Industries is expected to earn in 2020. As a healthcare company, it supplies products that are necessary for patients, regardless of the broader economic climate. By. Eaton Vance Corp (Symbol: EV) has been named to the Dividend Channel ''S.A.F.E. Clorox currently yields 2.5%, slightly above the 2.3% yield of the broader S&P 500 Index. No credit card required. It has increased its dividend for 42 years in a row, including an impressive 10% increase in 2019. Far less exciting is how safe the dividend is – but if 2020 isn't a lesson in why it's important to invest in safe dividend stocks, nothing is. Even given a significant short-term hit to earnings – which Value Line estimates will come to $4.20 per share this year – Oshkosh has all sorts of headroom, Its $1.20 in projected full-year payouts come to just 28% of those expected profits. In fact, sometimes a high yield can indicate problems as investors could have sold the stock or are demanding more from the firm. In 2017, the company closed on the massive $24 billion purchase of C.R. For instance, domestic construction issues are dampening demand in its lift business, but business is picking up in China, where Oshkosh has a foothold. "Management now anticipates that the U.S. retail market will finish up low-single digits for 2020, a monumental adjustment vs. the previous 'high-teens to low-twenties decline.'". A safe dividend stock is a company that can safely cover the dividend regardless of the economic environment we are in. Solid yields in the 2 to 4% range can indicate a great total return and help not only produce income but also capital gains. The company has grown its dividend for the last 2 consecutive years and is increasing its dividend by an average of 37.60% each year. After Trump, Biden aims to reshape the presidency itself . Colgate-Palmolive reported Q4 and full-year earnings on January 31st and results beat expectations for both revenue and profit. But in all cases, conservative dividend management is serving them (and investors) well. Its long history of annual dividend hikes shows that it is a shareholder-friendly company, committed to providing investors with rising dividends every year, regardless of the economic climate. 25'' list, signifying a stock with above-average ''DividendRank'' statistics including a … Brunswick (BC, $63.22) is a storied maker of recreational products dating back to 1845. UFPI also deserves an "atta boy" for the growth in its dividend. For decades, income-minded investors have searched for the best dividend stocks out there. The stock is also attractive for income investors as it provides a dividend yield above the broader market index. Walmart’s earnings-per-share increased every year as well, from $2.93 in 2007 to $3.73 in 2010. 9 High-Yield Stocks With Safe Dividends originally appeared on usnews.com. Organic sales rose 5% in the most recent quarter, thanks to all of its regions outside of North America posting gains of at least 6%. The payout ratio is expected to expand a bit, to 15.7%, based on slightly lower 2020 earnings estimates from Value Line and a current indicated annual dividend of 48 cents. Our third pick is Hormel Foods (HRL), a global food manufacturer with nearly $10 billion in annual sales, and a market capitalization of $25 billion. Wedbush analyst Jay McCanless only has a Neutral rating on shares, but he recently raised his price target from $45 per share to $56, citing "a mixture of good news from the Retail segment with double-digit volume gains due to high demand from UFP's customers.". There are numerous metrics that one can examine when considering a stock purchase. We believe Walmart will continue to generate strong profits even if the U.S. is on the brink of a severe recession. Stock research group CFRA is much more bullish, with a Strong Buy rating on UFPI, noting that valuation, quality, growth, financial health and price momentum are all positive. When investors evaluate dividend stocks, they'll typically look at the yield first, then maybe delve into how much it's growing. Like many insurers, American Financial Group has taken a deep financial hit from the pandemic. However, AFG also issues special dividends based on its financial performance, so it also doled out one-time payouts of $1.50 and $1.80 per share, respectively. Buy These 2 Stocks Before Trading Opens for 2021. Hundreds of companies have reduced or suspended their dividends this year, including dozens of big-name firms such as Boeing (BA), Ford (F) and Disney (DIS). But the deep discount retail industry — which Walmart dominates — is one of the very few outperformers in an economic downturn. We could get quick passive income trough some investment projects that are provided by some companies. The safest dividend stocks would also provide dividend growth along with a tollbooth-like business which means cash is continuously flowing. Today, I’ll present five safe dividend stocks that cautious income investors should own. The most commonly used metrics to determine the dividends’ safety are available in this list of the stocks with the highest dividends and include: Add a Comment. Its dividend should continue to grow as well. But investors might want to wait for better prices before buying in. Multiple operating segments showed strength in the most recent quarter. Hence, its primordial to invest in stocks with reliable dividends. But a horrendous 2020 has cut deeply into that lead. At the end of the article, we will take a look at 15 of the best high dividend stocks, providing analysis on each company. One of your stocks is down big. The best dividend stocks in Canada will give you a consistent dividend yield for years to come. 9 Super-Safe-Growth Stocks for Long-Lasting Dividends These dividend stocks also offer steady growth for long-term security By Brian Bollinger, Simply Safe Dividends Jan … While many stores have closed, Walmart will continue to see strong results in its e-commerce sales. According to the company, it has 35 products that are either #1 or #2 in their category. CFRA joins Wedbush in its bullishness for BC, rating it a "Strong Buy" based on valuation, quality and momentum, among other factors. But with so many options to choose from, it can get overwhelming to even start thinking about a stock to invest in.. And again, this seems unlikely, given Walmart’s tendency to benefit from recessions. Reinsurance Group of America (RGA, $95.03) is another similarly banged-up insurance stock, and another example of why it's important to invest in safe dividend stocks with conservative payout management. It has paid uninterrupted dividends on its common stock since 1895, and has increased payments to common shareholders every year for the past 57 years. Colgate-Palmolive should fare much better than many other companies in the event of a coronavirus-related economic downturn. The 87 cents it paid in dividends last year represented just 20% of the company's $4.33 in per-share profits. Dividend income investors are extremely sensitive to dividend cuts because their main motivation of stock picking is dividend income. The company paid out $1.68 per share in dividends last year while earning $9.08 – a lean 18.5% payout ratio. Its dividend yield has shot up to 6%, and you're counting on its income in retirement. Currently, Brunswick is indicating 2020 payments totaling 96 cents per share, though that could be more by year's end if BC keeps up its dividend-hiking ways. Disruption in the equities market, combined with higher life insurance claims among policyholders age 70 and up, has weighed on performance. On an adjusted basis, which excludes certain costs and gains, earnings-per-share declined 1%. × Welcome to Dividend.com Please help us personalize your experience. Remember: Unlike Visa (V) and Mastercard (MA), which are purely payments processors for other banks, Discover is effectively a bank itself, and thus is on the hook for its customers' debts. More reading. And that adversity absolutely has arrived in 2020. The stock has a current yield of 1.4%, which is below the S&P 500 average yield, but BDX makes up for this with consistent dividend growth. UFP Industries (UFPI, $61.85) makes wood and wood composite building products for construction, industrial and retail solutions. However, not all high yield dividend stocks are safe. Even in the recent coronavirus crisis, consumers still need soap, toothpaste, and pet food, which bodes very well for Colgate-Palmolive. People will always need to eat, and in economic downturns may actually shift buying towards Hormel’s product line. IMAGE DISTRIBUTED FOR CLOROX - Clorox celebrates America's biggest mess makers, gifting Rose the ... [+] Bulldog of Rogers, Ark. To … Fortis. Excel_for_Export_-_5_Safe_And_Cheap_Dividend_Stocks.xlsx. In addition, BDX is working on treatments for COVID-19. In addition to being dividend heroes, the dividends these stocks are forecasted to pay also look safe. Investors fretted that sales of boats and other marine craft, among the most discretionary of purchases, would suffer amid a sharp recession. The higher the percentage, the more net profits go toward sustaining the dividend – and the more risk that a sudden reduction in profits would lead to a negative dividend action. Lastly, revenue for the Interventional segment grew 4.4% on strong sales of Surgery, Urology and Critical Care products. To help you navigate a rapidly changing market landscape, we invite you to subscribe to our FREE daily and weekly newsletters on MoneyShow.com. In my experience, the main criteria to look for when betting on great dividend stocks is a … Safe Stocks for Dividend Investors by George L Smyth. 1. But the pandemic quickly threw a wrench in that outlook, as the unemployment rate soared from 3.5% in February to 14.7% in April, and the Federal Reserve slashed interest rates to zero in March. , from organic growth opportunities as well, the company, it supplies products are... That has included multiple recessions of stock picking is dividend income low-price in... Regular payout has doubled since its resumption in 2013, which appears to have an airtight dividend, provides. The fourth quarter to $ 0.75 Home Care, Home Care, Personal Care Personal! 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