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Source: istock

Which Stocks Pay the Highest Dividend? Dividend Investing During COVID-19

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Investing in stocks that pay high dividend yields has been a solid investment strategy for a long time. However, during the coronavirus pandemic, many companies have slashed their dividend payments in favor of hoarding cash.

Dividend investing during the coronavirus pandemic is still possible. So, which stocks pay the highest dividend in 2020?

What is a dividend?

To encourage shareholders to hold onto their stocks, many companies pay shareholders a dividend. This is a way for companies to share revenue. Dividends are usually paid in cash once a quarter.

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Source: istock

Dividends are paid per share of stock. If you own ten shares in a company that pays a $1 annual dividend, you would receive $10 in dividend payments for one year. Fractional shareowners are also entitled to dividend payments.

Dividend payments are usually given out in cash and deposited into your brokerage account. The money can be used to invest in more stocks. As a result, many investors like to buy shares with high dividend yields. Your stocks go up in value with the market and they also provide an annual income that can be reinvested.

Which stocks pay the highest dividend?

As mentioned previously, many companies have slashed their dividend payments due to economic uncertainty amid the coronavirus pandemic. Companies like Walt Disney and Southwest Airlines, staples in dividend portfolios in the past, have temporarily suspended their dividend programs.

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Source: istock

However, some companies are faring far better amid the COVID-19 pandemic. They have increased their dividend payments to investors. Nerdwallet, a money management app, recently compiled a list of stocks with the highest dividend yields amid the coronavirus pandemic.

NHI | National Health Investors Inc. (REIT) | $1.10 | 7.36 percent

BNS | The Bank of Nova Scotia | $0.90 | 6.29 percent

BCE | BCE Inc. | $0.83 | 5.76 percent

CVX | Chevron Corp. | $1.29 | 5.69 percent

BMO | Bank of Montreal | $1.06 | 5.59 percent

TRP | TC Energy Corp. | $0.81 | 5.46 percent 

PFG | Principal Financial Group Inc. | $0.56 | 5.31 percent 

TD | The Toronto-Dominion Bank | $0.79 | 5.13 percent 

STX | Seagate Technology Plc. | $0.65 | 5.00 percent 

OMC | Omnicom Group Inc. | $0.65 | 4.88 percent 

RY | Royal Bank of Canada | $1.08 | 4.67 percent 

DUK | Duke Energy Corp. | $0.95 | 4.60 percent 

ALE | ALLETE Inc. | $0.62 | 4.53 percent 

NKSH | National Bankshares Inc. | $0.67 | 4.49 percent 

NWE | NorthWestern Corp. | $0.60 | 4.40 percent 

SLF | Sun Life Financial Inc. | $0.55 | 4.36 percent 

BXP | Boston Properties Inc. (REIT) | $0.98 | 4.32 percent 

BOH | Bank of Hawaii Corp. | $0.67 | 4.23 percent 

MTB | M&T Bank Corp. | $1.10 | 3.96 percent 

BKH | Black Hills Corp. | $0.54 | 3.93 percent 

DTE | DTE Energy Co. | $1.01 | 3.90 percent 

SR | Spire Inc. | $0.62 | 3.80 percent 

WHR | Whirlpool Corp. | $1.20 | 3.78 percent 

UPS | United Parcel Service Inc. | $1.01 | 3.75 percent 

MMM | 3M Co. | $1.47 | 3.72 percent 

Dividend investing can be difficult during times of economic downturn, but there are always opportunities out there. The fact that there are so many dividend investment opportunities during one of the harshest recessions in history highlights the possibilities.

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