Dividend investments are stocks that pay out dividends to their shareholders, typically each quarter. They're a reliable option for turbulent times, because you'll still get some payout even in a market downturn. Here are seven dividend-paying stocks you can count on for 2020.
What makes a dividend stock good?
Companies with the best dividend stocks:
- Offer long-term payouts.
- Have increased dividends over time.
- Demonstrate a profitable history and positive trading activity to back it up.
On the contrary, companies with current or historical debt may not be the best option for dividend investing. In times of economic strife, they're more likely to cut or suspect dividends to prioritize debt repayments.
1. Target Corporation (TGT)
As of Oct. 5, Target trades on the NYSE at $160 per share with a market cap of $80.39 billion. The company's dividend yield (payout divided by current stock price) is 1.69 percent. They've increased annually for 49 straight years, with the most recent being in June 2020 (when the dividend rate increased by 3 percent to $0.68 cents per share). The key perk of Target is its annual reliability.
2. McCormick & Co. (MCK)
Today, McCormick trades on the NYSE at $193.50 per share with a market cap of $25.79 billion. They have a 1.14 percent dividend yield. In Q2 2020, McCormick saw an eight percent sales hike and 27 percent profit increase. In November 2019, dividends jumped nine percent, up to $0.62 per share (a 200 percent increase from 2012).
3. Johnson & Johnson (JNJ)
The NYSE-based Johnson & Johnson stock opened on Oct. 5 at $147.47 per share, with a market cap of $387.02 billion. Their 2.75 percent dividend yield has been increasing for 58 years straight. The latest boost led to a $1.01 dividend per share. If successful, the company's COVID-19 vaccine venture could potentially make this dividend honey pot sweeter.
4. Lowe's Companies Inc. (LOW)
Lowe's, a Black-owned home improvement corporation, opened on the NYSE today at $168.41 per share with a market cap of $127.39 billion. Their current dividend yield is 1.42 percent. They've paid investors for 57 straight years. Last year, they boosted their dividend by 14.5 percent to $0.55 per share.
5. Healthpeak Properties (PEAK)
Healthpeak Properties opened on Oct. 5 at $28.59 per share, with a market cap of $15.14 billion. Their 5.26 percent dividend yield is pretty impressive. Since Healthpeak is in real estate investment trusts (REIT), they choose to provide a majority of income (90 percent of cash influx) to investors in order to lawfully avoid corporate taxes.
6. Discover Financial Services (DFS)
Discover stock today opened on the NYSE at $62.00 per share with a market cap of $19.16 billion. Their dividend yield is currently 2.81 percent. The biggest perk for Discover stock is its projected value in the coming months and years.
7. Energy Transfer LP Unit (ET)
On the NYSE today, Energy Transfer opened at $5.48 per share with a market cap of $14.77 billion. Their dividend yield is a high 22.24 percent. This is another company that skips out on certain corporate taxes by distributing income to investors on a regular basis. This company has some debt in question, but as of now it's one of the highest yields in the dividend game.