The current instability in the market caused by the rising spread of the virus and low-interest-rate environment make the case favorable for dividend stocks. As the pandemic-related uncertainty is expected to continue next year as well, in the absence of any effective treatment or vaccine so far, it could be wise to bet on dividend stocks that have price appreciation potential as well…
Dividend stocks have performed well this year as can be noted from the performance of the Vanguard High Dividend Yield ETF (VYM) which has gained 43.9% since March.
Companies like The Procter & Gamble Company (PG), Danaher Corporation (DHR), Anthem, Inc. (ANTM), and Colgate-Palmolive Company (CL) have been paying steady dividends for years and have also increased their payout over time. These companies have time-proven business models and are expected to continue doing well in 2021.
The Procter & Gamble Company (PG)
PG develops, manufactures, and markets consumer goods in a wide variety of segments. The company engages in healthcare, grooming, home care, fabric care, and beauty. PG’s stock has gained 12.3% so far this year.
The company has distributed a $0.79 dividend per share for the last three quarters, which is an increase of 6.8% from the earlier dividend amount. The company’s dividend payout has a five-year CAGR of 3.13%. The expected annual dividend yield is 2.25% while the four-year average dividend yield is 2.99%.
The company has recently released a new line of dampers with a lining of shea butter to help take care of the skin and prevent rashes. The company’s new Microban 24 sanitizing spray that prevents the spread of the coronavirus has received approval from the EPA. This new product that has been shown to kill the COVID-19 virus in 60 seconds is expected to be highly popular among people wanting to stay safe during the pandemic.
PG is expected to witness revenue growth of 4.6% for the quarter ending December 2020, and 4.5% in 2021. The company’s EPS is estimated to grow by 8.6% in 2021 and at a rate of 8.5% per annum over the next five years.
How does PG stack up for the POWR Ratings?
A for Trade Grade
A for Buy & Hold Grade
A for Peer Grade
A for Industry Rank
A for Overall POWR Rating
The stock is also ranked #1 out of 34 stocks in the Consumer Goods industry.
Danaher Corporation (DHR)
DHR develops, manufactures, and markets medical, industrial, and commercial products in the United States and internationally. The company operates a range of brands such as Videojet, Pall, Beckman Coulter, and more. Many of these brands hold leadership positions in their respective segments. DHR’s stock has gained 47.2% so far this year.
The company has distributed a $0.18 dividend per share for the last three quarters, which is an increase of…
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