Top Dividend Stocks to Buy in 2021 How It Works
Introduction Of Top Dividend Stocks to Buy in 2021 How It Works
Top Dividend Stocks to Buy in 2021 How It Works. Top dividend stocks that pay up to eight point five percent in annual dividends I spend a lot of time analyzing stocks and these are some of the companies I recommend checking out make sure to watch until the end as I’ll go over key numbers current news and my opinions on why these could be good stocks to hold let’s get started so the first company on my list is tc energy stock ticker trp to energy is a part of the transportation and warehousing sector and they’re involved in the pipeline transportation for the natural gas industry.
This company operates a 60 000 mile network of natural gas pipelines they transport natural gas
This company operates a 60 000 mile network of natural gas pipelines they transport natural gas from supply basins to local distribution companies power generation plants and industrial facilities right now tc energy is trading at 44.41 cents with a 52-week low of 32.37 and a 52-week high of 57.92 looking at their one-year price chart we can see a pretty steep drop at the beginning of the pandemic and since then it’s hovered between 40 and 50.
They do have a market cap of 41.519 billion dollars a pe ratio of 15.97 earnings per share of 2.78 cents and a pretty great dividend of 5.89 right now their price to book ratio is 1.78 and if you take a look at their profitability we can see that their profit margins are quite good with their profit margin at 35.49 they also have a pretty good return on equity of 14.68 one thing that’s a little bit off about this company is their balance sheet and we can see that their current ratio is 0.51 this means they have about half the current assets as they have current liabilities now it’s always interesting to see what the analysts have to say.
So on a scale of one to five one being a strong buy and five being a cell analysts rate to energy as a one-point seven meaning it is a buy and the average analyst price target is fifty-four dollars and fifty-one cents which is about twenty percent higher than the current price of forty-four dollars and forty-one cents so one reason why I think tc energy is such an attractive stock is that pipelines do not produce oil instead of the more gas that they move the more money they can make so since it’s not as correlated with energy commodity prices it’s more low risk for the energy sector now they have increased both profits and cash flows throughout history despite regular shocks to the system, for example, the demand for oil during the pandemic was down a lot however it was able to maintain profits.
The first three quarters in 2020 their net income increased by 165 million dollars to 904 million dollars
That was equal to 2019 and grow their cash flows for the first three quarters in 2020 their net income increased by 165 million dollars to 904 million dollars and 95 of their earnings come from regulated assets or assets that are backed by long-term contracts this should equate to a more reliable dividend and share price tc has a proven capital allocation model where 60 of its revenues are reinvested back into its business targeting low-risk assets that increase productivity the dividends have increased for the past 20 years and it’s 30 billion dollars of projects sitting on its books makes this an attractive stock to look into they’ve also issued guidance saying.
That their dividends are expected to grow up to 10 in 2021. overall I think this is a relatively safe diving stock that I am a big fan of next up on my list is ultra group stock ticker mo this is a company that sells and manufactures cigarettes smokeless products and wine in the united states right now Altria is trading at 41.20 with a 52-week low of 30.95 and a 52-week high of 51.47 we saw the typical drop in the stock price with the pandemic and since then it’s been hovering between 35 and around 45 dollars Daltrey’s market cap is 76.567 billion dollars and they have a p e ratio of 107.29 which is very high their earnings per share right now is 38 cents and they have a very high dividend yield of point three seven percent.
Their five-year price to earnings growth ratio is six point three one and they have a price to book ratio of twenty-four point seven four the profit margin sits at about three-point five-six percent and they have a return on equity of ten point three percent Altria is sitting on total cash of 4.12 billion dollars with a current ratio of 0.77 and in terms of what analysts are saying they rate this as a 2.1 meaning it is a buy and the average analyst price target is 47.79 which is almost 20 higher than the current price of 41.20 now smokable products are the largest segment of Altria and revenue growth has been substantial as well as their increase in net income in 2020. in fact.
Its revenue growth outpaced the subsector average of 1.1 percent and revenues
Its revenue growth outpaced the subsector average of 1.1 percent and revenues have increased by a staggering 4.9 percent the stock has a very generous dividend yield of 8.53 but of course with high dividends normally comes a bit more risk I’ve dived deep into the factors that can make altra risky but to be honest, I don’t see too many risk factors it’s undervalued in many senses and my opinion it’s one of the safest stocks that is paying such a high dividend Altria also has a 51-year dividend growth streak as well as great long-term dependability from 2012 to 2019 its operating cash flow went from 4 billion to almost 8 billion and this resulted in its dividend doubling to 3.25 and in 2020.
They raised their dividend once again which shows that even in a pandemic people are still buying tobacco I mean it’s not like a glamorous industry to invest in but there’s no denying that it is quite safe tobacco companies are actually not allowed to advertise their products so the big players like altri have a big advantage over newcomers and you may have noticed that cigarette prices have gone up consistently fewer people smoke now but Altria is still able to grow its earnings just due to the fact.
That they can raise prices without an effect on demand so yeah definitely check out Altria if you want a high paying dividend stock third on my list is china petroleum and chemical corp stock ticker SNP s p is based out of mainland China and they operate and engage in oil and gas operations this company is also known as cinematic and they do oil and gas exploration refining marketing and a lot more so right now SMP is trading at 50 and 74 cents with a 52-week low of 38.18 and a 52-week high of 60 and 81 cents they’ve taken quite a big hit in the last year and after hitting a low in October it seems like their price is steadily going up.
Now has a market cap of 74.7 billion dollars a p e ratio of 5.58 which you guys is extremely low and a very great dividend yield of 8.53 their five-year peg ratio is 7.57 and they have a price to book ratio of 0.48 the profit margin is just 1.65 and they have a return on equity that’s very low at 5.6 percent their current ratio is also under one at 0.92 now analysts currently are rating this as a 2.7 meaning it is between a buy and a hold and the average analyst price target is 53.60 which is about seven percent higher than the current price of fifty dollars and seventy four cents now compared to other general oil corporations such as exxon mobil chevron and bps p actually performed much better mainly due to china getting the pandemic under control in a more efficient manner in the second half of 2021.
They have a low valuation compared to other oil companies making it quite attractive for potential returns
These stocks should see some rising stock prices just thanks to the distribution of vaccines and the pandemic hopefully subsiding by the second half of 2021. they have a low valuation compared to other oil companies making it quite attractive for potential returns over the next year now I will say that s p’s dividend is a lot more volatile than many of the other oil companies and it’s just largely based on the financial results for the year however I do think that 2020 was one of the worst years for sp and that it’s going to get much better from here on out so then what is in store for s p’s dividend this year their earnings are expected to make quite a comeback this year.
This should translate into an increase in a dividend yield that is why I think china petroleum and the chemical corporation is a good pick for a long-term dividend stock for my list is cisco stock ticker cisco and most people are going to be familiar with cisco they are a company that provides a broad range of technologies globally right now cisco is trading at 45.43 with a 52-week low of 32.40 and a 52-week high of 50.28 cents we saw a big dip with the pandemic then we saw prices increase then we saw them dip back again and since the beginning of November they are back up to about 45 dollars per share cisco has a market cap of 191.965 billion dollars a pe ratio of 18.39 earnings per share of 2.47 and a dividend yield of 3.19 meaning.
It is a mild dividend stock they have a five-year peg ratio of 2.96 and a price-to-book ratio of 4.96 the profit margin right now is sitting at 21.7 percent and they have a very good return on equity of 28.83 ciscoes is sitting on about 30 billion dollars of cash and they have a great current ratio of 1.59 analysts do rate cisco as a 2.4 meaning it is between a buy and hold and the average analyst price target is 48.74 which is about six percent higher than the current price of 45.43, in my opinion, there are quite a few positives with cisco at the moment first they have a strong balance sheet and their cash flow from operations is solid cisco was supposed to acquire acacia in July 2019 and after a long time.
What they had originally planned hopefully this will help cisco gain some momentum
They finally confirmed a merger will take place this is going to be about a 4.5 billion dollar deal so, they’ll be buying at 115 per share which is much higher than what they had originally planned hopefully this will help cisco gain some momentum and offset its slow growth cisco’s annual dividend payout is 1.44 which equates to a 3.19 yield and it’s five-year dividend growth is 11.76 percent which is great I’m a long-term believer in cisco and while they are not an exciting company I do think that the recent announcement of the merger will give them some revitalization overall I’m holding on to my cisco stock for.
Its solid dividend and proven track record number five on my list is Verizon stock ticker vz Verizon is one of the biggest telecommunications companies in the united states right now Verizon is trading at 57.38 with a 52-week low of 48.84 and a 52-week high of 61.95 the stock is bouncing all over the place and we can see that they recently reached their one-year high but since then it’s down a little bit Verizon has a market cap of 237.44 billion dollars a pe ratio of 12.98 and a dividend yield of 4.4 percent.
They have a five-year peg ratio of 3.73 and a price-to-book ratio of 3.72 they have a pretty strong profit margin of fourteen point two six percent and a very good return equity of twenty-nine point seven two percent they’re sitting on about nine billion dollars of cash and their current ratio is one point zero seven now analysts are rating Verizon as a 2.6 meaning it is between a buy and hold and the average analyst price target is 61.62 cents which are about 7 higher than the current price of 57.38 overall I do think that Verizon has excellent potential in the future in the most recent news Verizon should see significant growth in their service revenue segment due to the Tracfone acquisition and them going all-in on 5g.