Companies that offer stocks with high, but reliable over the long term, dividends to invest in can be difficult to come by. Sometimes, the number turns out to be too good to be true and will drop drastically. How can you find a stable stock that will provide returns continuously?
The short answer is that you are going to always want to research the background of a stock before you buy it. However, being 100% certain that the dividend yield will hold up can be difficult.
These are companies that have proven themselves to be reliable over the years and their stocks have high dividends- making them perfect to invest in. Whether it be for a long period or day trading stocks.
1. Energy Transfer (ET)
Dividend Yield: 15.5%
This company operates natural gas pipelines through a master limited partnership, leading to a strong flow of cash to their investors. The company is growing and is reliable to invest in- it has gas pipelines covering almost 40 states and can collect fees on the transported resources.
Even though they were affected by the pandemic, their yield of over 15% is remarkable and experts expect it to hold on strong.
2. AT&T (T)
Dividend Yield: 6.9%
AT&T has proven themselves as a force to be reckoned with in the wireless phone service business- plus, because they offer internet, they are always going to be needed to provide these services.
When considering buying a stock from this company, you will want to keep in mind that their higher-ups treat it as a way to mostly preserve the investments provided by buyers. You will still earn a solid income from the dividends, but the value will not jump around drastically from day to day.
Overall, this makes them a solid investment.
3. McDonald’s (MCD)
Dividend Yield: 2.7%
In these uncertain times, any business that can stay stable is a good investment. McDonald’s stock has almost a 3% yield on top of that, as well as showing potential growth for many years.
In the past recession, McDonald’s was able to thrive- and they have been showing similar signs of that during the current pandemic. While an investment into a share would likely be very costly, it is worth it to have a steady income from the market.
4. Discover Financial Services (DFS)
Dividend Yield: 3.2%
Discover Cards have been steadily growing in popularity from year to year. There also is the potential for them to grow their yield for investors as well, since their earnings more than cover the payout amounts.
Discover Financial Services expected growth is what makes it one of the best companies to buy stocks in this year- their dividend yield is projected to grow.
5. Bristol-Meyers Squibb (BMY)
Dividend Yield: 3%
This company is deeply involved in the pharmaceutical market and has a strong portfolio made from it. The medicine involved keeps their dividend yield stable and a safe investment, even during the pandemic.
Experts also are expecting Bristol-Meyers to grow their earnings by 15% over the next few years, meaning there is more potential for long term growth in the company.
Investing in stocks with high dividends can be a great way to earn an income, as long as you are sure that the company and their earnings are going to be stable for the next few years. If you build the right portfolio, you can live off dividends stocks.
These companies have shown that they can hold themselves together well during the health crisis and provide strong yields that show no signs of sinking.
Overall, I think that investing in any of these businesses would be worth your time and money.
About the Author:
Skylar Hammond is a writer for True Trader who specializes in topics such as stock trading, personal finance, and forex. He focuses on helping beginners and experts alike learn more about the market and improve their trading skills.