The 7 top dividend stocks for 2021
Last year there were two halves for dividend stocks. Due to the novel coronavirus pandemic, the first half of 2020 was full of payout cuts and suspensions by S&P 500 member companies, but dividends rebounded strongly in the second half, suggesting that many of the top stocks for 2021 are dividend payers. The trend in the S&P 500 payouts in the fourth quarter shows that the darkest clouds of coronavirus cuts are over. And dividend investors might be waiting for better things this year. “Reported net changes in dividends (increases less decreases) for US domestic common stock increased $ 9.5 billion in the fourth quarter of 2020, compared to a decrease of $ 2.3 billion in the third quarter of 2020 and earnings of $ 10.6 billion in the fourth quarter of 2019, “according to the S&P Dow Jones Indices. “For the fourth quarter of 2020, total increases were $ 13.9 billion, up 64.2% from the $ 8.4 billion increase in the third quarter of 2020 and up 15.7 percent over the $ 12.0 billion in the fourth quarter of 2019. Total dividend cuts declined 59.8% from $ 10.8 billion in the third quarter of 2020 to $ 4.3 billion, up from the $ 1.3 billion. USD cuts in Q4 2019 by 221%. InvestorPlace – Stock News, Stock Advice and Trading Tips In 2021, we have updated data on dividend futures which Goldman Sachs notes imply that these contracts could lead to cuts. But the bank says this is a case of mispricing and that dividends should rise this year. 9 Stocks Investors Believe Are the Next Amazon With this opportunity, some of the top dividend stocks to consider for 2021 are: Apple (NASDAQ: AAPL) JPMorgan Chase (NYSE: JPM) Western Union (NYSE: WU) Microsoft (NASDAQ ): MSFT) VICI Properties (NYSE: VICI) Equinix (NASDAQ: EQIX) Texas Instruments (NASDAQ: TXN) Dividend Stocks: Apple (AAPL) Source: View Apart / Shutterstock.com Apple’s dividend yield is just 0.64%. In this environment of historically low interest rates and low returns, the company does not stand out for its returns. However, it’s one of the rare examples of a name that’s rightly a growth stock with a solidified, growing dividend. In past eras of investing, tech companies made no rush to pay dividends as it was supposedly a sign that growth was behind them. This is not the case with Apple. A relatively new entrant to the dividend landscape, AAPL stock has risen steadily since becoming a dividend payer less than a decade ago. As of January 15, the company has a market capitalization of $ 2.15 trillion. The combination of 5G iPhone sales, stronger margins spikes, revenue-stable subscription-based services, and its robust entertainment arm make Apple a top stock for 2021. In the last quarter, the company had $ 191.83 billion in cash on hand. more than enough to support and grow the dividend this year. JPMorgan Chase (JPM) Source: Roman Tiraspolsky / Shutterstock.com For much of 2020, the allocation to bank stocks, including JPMorgan Chase, has tested investor patience. The group fell out of favor because of low interest rates, but that wasn’t all. Shareholder rewards (the only benefit of getting involved in these names) took a hit when the Federal Reserve urged major banks to scrap buybacks and that there would be no payout growth in 2020. Rather, JPMorgan had to set aside large amounts of capital to cover bad loans due to the fragile Covid-19 economy. With that in mind, the sour credit situation did not turn out to be as bad as the Fed expected. That could mean JPMorgan and its rivals will be allowed to turn that money back into profits in 2021. 7 Dividend Stocks That Are Boosting Their Payouts There are reasons to be optimistic when it comes to the JPM stock dividend, including the fact that the Fed waived its buyback freeze last month. JPMorgan took advantage of the announcement and was quick to say it would buy back $ 30 billion of its shares. Western Union (WU) Source: apichon_tee / ShutterStock.com Dividend stocks are commonly associated with large and mega-cap companies, but some smaller stocks have seen enviable payouts. This group includes the money transfer provider Western Union. The company has a market capitalization of $ 8.95 billion and a yield of 4.16%. This results in an annual payout of 90 cents per share compared to 24 cents a decade ago. WU stock has been sluggish over the past year, and its prosaic business doesn’t seem to live with the current level of sexuality attributed to the fintech revolution. However, Western Union has its own digital capabilities that could act as catalysts for the sleepy population this year. “Expanding real-time withdrawal capabilities is central to the company’s digital growth strategy, which is focused on growing its industry-leading digital services offered through westunion.com and digital partnerships,” the company said. “Together, the two growth drivers increased digital revenue 45% year over year in Q3 2020, equivalent to 21% of Western Union’s consumer business and an annual trend rate of over $ 900 million.” Microsoft (MSFT) Source: The Art of Pics / Shutterstock.com Microsoft’s dividend history is longer than Apple’s. However, both are prime examples of growth companies offering much more than just a dividend. Rather, they are growth names with the ability to support and grow the payout while generating impressive levels of capital appreciation. While so many energy, consumer discretionary, and real estate companies – to name a few sectors – cut and stopped dividends in 2020, Microsoft increased its payout. Last September, the tech giant increased its quarterly payout to 56 cents per share, an increase of 10%. The company ended 2020 with $ 136.52 billion in cash on hand, so it can easily support future dividend growth. The Top 7 Marijuana Stocks to Buy in January Of course, Wall Street demands more from MSFT stocks than dividend growth. And investors should too. Fortunately, the company can run. In the September quarter, Microsoft’s Azure cloud business, the second largest of its kind, grew 48%. While the PC market could wane a bit this year, Office 365, especially the version with teams, adds another growth driver for the company. VICI Properties (VICI) Source: Shutterstock Real Estate Investment Trusts (REITs) were among the most egregious offenders when it came to dividend cuts in 2020. However, VICI Properties did not receive this memo and increased its payout by 11% for the third year in a row. VICI is a gaming REIT, which means it is in the casino real estate business. To that end, it’s worth noting that the company owns Caesars Palace on the Las Vegas Strip, along with dozens of other domestic gaming venues. However, investors should also note that Caesars Entertainment (NASDAQ: CZR) is the REIT’s largest customer and Caesars has an extensive portfolio of regional casinos. Translation: VICI is significantly less Vegas dependent than you might think. In fact, just under a quarter of rental income was generated on the strip in the September quarter. VICI will have to pull some growth levers in the course of 2021. Caesars is likely to sell several properties across the country to generate cash. VICI is the likely applicant for some of these venues as it holds the right of first refusal on some assets on the Strip. In addition, VICI has served as a partner for smaller casino operators looking for regional venues, resulting in new rental income. Equinix (EQIX) Source: Ken Wolter / Shutterstock.com With a current price of around 700 US dollars, the REIT Equinix data center is not for everyone. EQIX is in the middle of a pullback where it has retreated 17% from its 52-week high. However, this could be a buying opportunity for investors. In data centers there are servers and network devices. And with spending on cybersecurity and cloud computing expected to rise again this year, EQIX stock remains strong. In addition, Equinix has recent history on its side and easily outperforms broader real estate benchmarks for five years. There are many opportunities for growth in 2021. 7 Hot Stocks That Power You With 3% Plus Income “Interconnection remains strong and we believe will continue to be the main driver of Equinix’s continued strength. The company added eight new cloud on ramps in the quarter, bringing the total to 160, which the company said resulted in a 42% market share in presence, ”said Morningstar. Texas Instruments (TXN) Source: Katherine Welles / Shutterstock.com Semiconductor manufacturer Texas Instruments is one of the original names for technical dividends that began paying out in 1962. That’s age old when it comes to technical dividends. More importantly, from 2004 to 2019, the payout increased at an average annual growth rate (CAGR) of 27%. 2020 was the 17th year in a row that the payout increased. Like many of his tech dividend peers, Texas Instruments has growth opportunities despite being a mature company. Its battery management system (BMS) makes it a credible derivative for electric vehicles. The BMS is used by EV manufacturers to “reduce the complexity of their designs, improve reliability and reduce vehicle weight to increase range”. Design and extended range are two of the big hurdles that, if removed, could quickly accelerate the adoption of electric vehicles. There are more glamorous semiconductor stocks out there, but TXN is a way for conservative investors to get some EV exposure while receiving compensation. That’s no small feat given the lack of reliable dividends in the EV arena. At the time of this writing, Todd Shriber held positions (neither directly nor indirectly) in any of the securities identified in this article. Todd Shriber has been contributing to InvestorPlace since 2014. More From InvestorPlace Why Everyone Is Investing In 5G All FALSE Top Stock Pickers Reveal Their Next 1,000% Winner It doesn’t matter if you have $ 500 or $ 5 million in savings. Do this now. 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