Mike Hodel: Since we first started this dividend stock video series at the start of 2019, we ve highlighted stocks across a variety of sectors, including tech, financials, energy, and telecom. But we haven t looked at two traditional sources of dividend ideas, consumer staples and utilities. This time around, we will rectify those omissions with two new dividend ideas and then review a handful of past ideas that we still think are attractive.
Among consumer staples, Kellogg (K) is currently one of our analyst favorites, trading at a 25% discount to our fair value estimate and it provides a nearly 4% dividend yield. While perhaps best known for its long-standing breakfast cereals, the firm has spent the past several years remaking its product lineup. On-trend snack items now account for around half of total sales, with cereal only around 20%. Recent acquisitions like RXBAR provide both solid growth potential and give Kellogg avenues to respond as consumers tastes change in the futu
Author Bio
Matthew is a senior energy and materials specialist with The Motley Fool. He graduated from Liberty University with a degree in Biblical Studies and a Masters of Business Administration. You can follow him on Twitter for the latest news and analysis of the energy and materials industries: Follow @matthewdilallo
What happened
Units of
Enterprise Products Partners (NYSE:EPD) slumped 30.4% in 2020, according to data provided by S&P Global Market Intelligence. Weighing on the master limited partnership (MLP) was weakness in the oil market, which impacted its operations and growth prospects.
So what
The oil market nearly collapsed during the second quarter after the COVID-19 outbreak forced the global economy to shut down, right as OPEC and Russia started an oil price war. Those dual headwinds caused oil demand and pricing to fall off a cliff. That impacted the volumes flowing through midstream systems, like those operated by Enterprise. As
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IBM [IBM], here we come just maybe,” Gross wrote, noting that the tech company recently traded at 10 times earnings and offered a 5% yield.
Tesla (TSLA), is “definitely overvalued,” in Gross’ view, due in part to the run-up it saw from Robinhood traders he referred to as “groupies.”
As for where Gross is putting his money these days, he favors natural-gas pipeline stocks, which offer yields between 9% and 12% and, in some instances, tax advantages. Magellan Midstream Partners (MMP), BP Midstream Partners (BPMP), and Enterprise Products Partners (EPD) are among his picks. The three were all up more than 3% on Tuesday, while the S&P 500 gained 0.7%.
Our Three Favorite High-Yielders for 2021 Printable PDF
Earlier this week, I explained why 2021 could be a good year for equity income investors. While momentum stocks are all the rage, high dividend payers have been neglected. Their dividend yields are high while their share prices are low.
ALPS International Sector Dividend Dogs ETF (IDOG). A mutual fund is a great way to obtain portfolio diversification. IDOG owns 50 stocks spread across 10 sectors.
The advantage to portfolio diversification is that it minimizes the potential damage done by “specific risk” to an individual company. The grounding of the 737 MAX passenger jet in 2019 after a pair of deadly crashes was a risk specific to