When stock market volatility drives me crazy, I find solace in dividend stocks. Or rather, I am comforted by high dividend stocks that I know will pay me a decent amount no matter what the market does. And there’s nothing better than packing some of these top-notch dividend shares while they continue to perform well and lag behind the broader market, despite visible growth catalysts ahead. Here are three of these promotions that have caught my attention lately.
Not all retail is in landfills
Real estate income (NYSE: O) inventories have dropped by about 12% since the beginning of the year. With a dividend yield of 4.3%, I find this to be an attractive starting point.
With the closure of retail businesses due to the coronavirus (COVID-19) quarantine, Realty Income’s business should have suffered. After all, most renters own retail stores.
However, the nature of these tenants, their sheer number, and Realty Income’s business style saved the company from unpleasant turmoil. Where is the proof? In August, Realty Income collected 93.5% of rents, up from 87.8% in June.
You see, most Realty Income tenants operate in a non-discretionary business that is in strong demand. Think about dollar stores, convenience stores, and drug stores. Top 5 tenants today Walgreens, 7-Eleven, Dollar general, FedExand Dollar tree… In total, Realty Income has about 600 tenants, making it a high quality diversified portfolio.
The more important reason Realty Income was able to weather the storm is because it real estate investment fund, that is, he buys commercial real estate and rents it out. These are long term leases, usually 10 to 20 years. Plus, they are all triple rentals, which means that renters cover costs like maintenance and insurance, while Realty Income just collects the rent. They also have built-in annual rental escalators. Historically, rental income for the same Realty Income store has increased by 1–1.5% annually.
Image source: Getty Images.
It is a flawless business model for generating stable income, and Realty Income is also supporting growth through new real estate acquisitions. Management plans $ 1.25 billion to $ 1.75 billion in acquisitions for 2020.
Here’s what I love the most: the fact that the predictable monthly rent payments that Realty Income collects can easily support monthly dividends. Yes, Realty Income has been cutting the monthly check and increasing its dividend every year since it went public in 1984. With the opening of the economy, I love where Realty Income is now.
10% energy reserve? Yes please
With an oil market crash hitting oil and gas stocks this year, it’s no surprise that Enterprise product partners (NYSE: EPD) As of this writing, the stock has lost almost 39% YTD, bringing the dividend yield to a whopping 10.2%.
I tend to steer clear of sky-high-yield oil stocks today, but Enterprise Product Partners’ dividends look safe, especially after medium flow energy company decision to cancel the M2E4 pipeline project taking into account the current circumstances, which do not require additional pipeline capacity.
Now that the project has been canceled, Enterprise expects its projected growth capital expenditures to drop $ 800 million through 2022. The company will use this money instead to reduce debt and reward shareholders in the form of share buybacks. The timing couldn’t have been better. While management did not mention dividends, it is likely that shareholders will be offered a dividend increase this year, however small, in order to maintain their annual dividend growth record of over 20 years.
Potential dividend growth, 10% plus yield, strong financial results, and a largely fee-based business that largely protects the company from oil price volatility, all of which really brought my attention to this energy dividend stock.
I see an underestimated stock of coronavirus here
Would you consider buying medical equipment it is already promoting its COVID-19 vaccine candidate for phase 3 trialsbut this year is hardly in the green zone? What if I also told you that this is not an ordinary company, but a company with a rich 130-year history and top-notch brands in the fields of consumer health, pharmaceuticals and medical devices? Oh and this promotion too Dividend Kingincreasing dividends every year for over 50 consecutive years?
Sounds tempting, right? it Johnson and Johnson (NYSE: JNJ) for you – one dividend share, which I will accumulate for many years.
Under the current circumstances, the pace at which Johnson & Johnson is working in the race to produce the coronavirus vaccine may be reason enough for many to buy stock. By the end of September, everything is ready to launch the third phase. But there are many other compelling catalysts that are hard to ignore.
An extremely diversified portfolio of 26 products or brands that generate at least $ 1 billion in annual sales, an impressive biotech flow, and an impeccable track record of free cash flow and dividend growth over decades make Johnson & Johnson the top choice for revenue. investors. And do not forget with what aggression the company is growing: it is going to acquire Momenta Pharmaceuticals (NASDAQ: MNTA) for 6.5 billion dollars to take a big step forward in immunology.
With 58 years of dividend growth and a 2.7% yield, I think Johnson & Johnson’s stock will sell if bought today.
