In 2021, the US stock market headed for stocks that will rally on the economic recovery, but concerns remain among investors about overvalued technology stocks and inflation risks. Therefore, stocks with a reliable dividend yield are still in demand.
For stock market investors in 2021, stocks with high dividend yields continue to be more attractive. The list of the best dividend stocks is published annually by the American news magazine US News & World Report, in 2021 it included the next 15 dividend stocks, the growth / decline from the beginning of the year to the close of trading on Friday is indicated in parentheses.
1. Retailer Target Corp. (+ 27.5%)
2. World leader in industrial packaging of products Greif (+ 35.2%)
3. Biopharmaceutical company AbbVie (+ 8.4%)
4. The largest US bank by assets JPMorgan Chase & Co. (+ 28%)
5. Holding company Johnson & Johnson (+ 8.6%)
6. Iron Mountain Real Estate Investment Fund (+ 45.8%)
7. PepsiCo (-0.8%)
8. Financial services company Discover Financial Services (+ 25.9%)
9. Technology company Cisco Systems (+ 17.2%)
10.The world’s second largest food company Mondelez International (+ 8.4%)
11. Crown Castle International Corp., a real estate investment trust and communications infrastructure provider in the United States (+ 16.6%)
12. Telecommunications giant AT&T (+ 4.35%)
13. Energy company Antero Midstream Corp. (+ 29.4%)
14. The world’s largest gold mining company Newmont Corp. (+ 22.8%)
15. Consumer goods manufacturer Kimberly-Clark Corp. (-1.8%)
Read more about the topic of dividends in the Marketinfo.pro article “What are dividends”.
Target (TGT) stock dividend yield as of May 21, 2021 is 1.21%, annual dividend: $ 2.72 per share. While these numbers are not high, the percentage of profit the company uses to pay dividends, known as the payout ratio, is quite low at only 21.8%, indicating that dividends are safe and can go up.
The reason for buying Target shares may be the positive changes that have been taking place in the company in recent years. Back in 2017, Target announced a $ 7 billion multi-year investment plan to reorient towards digital sales and technology, and that investment is paying off. Target’s online sales rose 118% last quarter, after rising 155% in the previous quarter.
With a 2.7% dividend yield on Greif (GEF) shares, the stock’s appeal is complemented by robust earnings growth for the manufacturer, whose industrial packaging products are used across all industries, including pharmaceuticals, petroleum, food and chemicals, to name a few.
Pharmaceutical giant AbbVie (ABBV) pays out an annual dividend of $ 5.20 per share with a dividend yield of 4.48%.
AbbVie shares are again on the list of the top 15 dividend stocks after being selected in 2020. A company with a market capitalization of over $ 200 billion, AbbVie currently sells the world’s most profitable drug, Humira, which treats several conditions, including arthritis, Crohn’s disease and plaque psoriasis. The acquisition of Botox maker Allergan is helping AbbVie further diversify its portfolio.
JPMorgan Chase dividend
JPMorgan Chase & Co. (JPM) has had a tough 2020, but this year is more optimistic given that consumer spending has returned to “pre-pandemic levels.”
JPMorgan’s trading revenue rose 25% in the first three months of 2021, deposits rose 32%, and assets under management rose 28%.
JPMorgan still pays out a dividend of 2.2%, with a payout ratio of 29% indicating a lot of room for dividend increases.
Johnson & Johnson dividend
Johnson & Johnson (JNJ) stock is another of the few recurring top dividend stocks to buy from 2020.
The holding company operates in three segments: medical devices, consumer goods, and pharmaceuticals. As hospitals scale back operations amid the pandemic, J&J’s medical device business was hit in 2020, but numbers have already started to climb in the first quarter, with the company’s largest pharmaceutical segment growing 7.4% last quarter.
J&J stock dividend yield: 2.36%, $ 4.24 annual dividend, payout ratio: 30.2%.
Iron Mountain dividend
Iron Mountain (IRM), a real estate investment fund (REIT) stock has the best dividend yield of all 15 stocks on this list and currently stands at 5.9%.
PepsiCo Stock Dividend Yield (PEP) is 2.9%. Thanks to a more diversified business than Coca-Cola (KO), Pepsi outlasted the recessionary 2020 better while continuing to deliver consistently good long-term prospects.
Discover Financial Services dividend
Credit card company Discover Financial Services (DFS) ranks among the top 15 dividend stocks to buy for the second year in a row.
And although with a market value of about $ 35 billion, Discover Financial is lagging behind its three largest competitors: Visa (V), Mastercard (MA) and American Express (AXP), it pays the highest dividend among them at 1.5%.
With more commerce moving online and consumers moving away from cash, credit cards in general should continue to gain market share over other payment methods in 2021. DFS has a low payout ratio of 20%, indicating that the downside risks in dividends are relatively small.
Cisco Systems dividend
Cisco is a blue-chip Dow Jones stock, with the tech company paying 2.8% in dividend at a 60% payout ratio.
Cisco has increased its dividend for nine straight years, maintaining it throughout the pandemic. Last quarter, Cisco returned $ 2.3 billion to shareholders in share repurchases and dividends.
Mondelez International dividend
The attractiveness of buying Mondelez (MDLZ) shares is that the investor gets a stake in a very stable in terms of income international company with many well-known food brands. Last quarter, 73% of Mondelez’s revenue came from outside North America. The company pays a dividend of 2% with a payout ratio of 46%.
Crown Castle dividend
Crown Castle International Corp. (CCI) owns, operates or leases more than 40,000 cell phone towers in the United States, and its real estate business covers all major US markets.
Crown Castle towers will also be a key part of the deployment of next-generation 5G technologies in the US, which will “gain traction” in the coming years.
Crown Castle has a dividend yield of nearly 3%.
Telecommunications giant AT&T (T) provided the highest dividend yield of any other component in the S&P 500, but last week the company announced a 40% -43% cut in its dividend payout ratio.
The decision was made to reflect the impact of the merger of AT&T’s media business WarnerMedia with Discovery (DISCA) into a separate, stand-alone company.
After the deal is closed, AT&T’s dividend yield will be in line with Verizon’s – at about 4.5%, which is also high, analysts said.
Antero Midstream Dividend Yield (AM) is a high 9.8%, which, on the one hand, is good, and, on the other hand, speaks of the risks for the company, which faced a crisis due to the fall in natural gas prices for most of the last year. The global recovery from the pandemic has pushed up energy prices and Antero Midstream shares.
The world’s largest gold mining company Newmont (NEM) has a stock dividend yield of 2.99% with a payout ratio of 23.05%.
Consumer goods manufacturer Kimberly-Clark (KMB) is one of the most time-tested stocks on this list, and has been around since 1872 with a dividend payout of 3.4%. The payout ratio is 64% and Kimberly-Clark increased its dividend in November for the 48th straight year.