The ultra-low rates have sent investors chasing after high-yield dividend stocks this year. This is especially true as the 10-year Treasury yields were at historically lower levels of below 1% for most of the year and will remain under pressure given the inflow of cheap money into the economy.
The Fed has pledged to keep interest rates near zero and will continue to buy at least $120 billion of bonds each month until "substantial further progress" has been made toward reaching maximum employment and healthy inflation. Additionally, the coronavirus outbreak wreaked havoc on the economy, driving the appeal for dividend-paying stocks. Though the pandemic is seemingly nearing its end with the arrival of the vaccine, the surging number of new cases is still weighing on investors’ sentiment. Concerns over the availability of safe vaccines to all Americans soon added to the woes. In such a scenario, high-yield dividend securities are the major sources of consistent income for investors, creating wealth. These stocks often play a defensive role in a portfolio and can reduce volatility in turbulent times or uncertain markets. The companies that pay high dividends generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. Below, we have highlighted five stocks that have beaten the stock market this year. These stocks have a Zacks Rank #1 (Strong Buy) or 2 (Buy), a dividend yield of greater than 4%, a market cap of more than $100 million and year-to-date returns of more than 15%. You can see . the complete list of today’s Zacks #1 Rank stocks here Norbord Inc. – Up 65.8% It is a producer of wood-based panels and operates primarily in the United States, Europe and Canada. Norbord has a market capitalization of $3.6 billion and a Zacks Rank #2. It yields 4.18% annually. B&G Foods Inc. ( BGS Quick Quote BGS - Free Report) – Up 63.8% This company manufactures, sells and distributes high-quality, shelf-stable, frozen food and household products across the United States, Canada and Puerto Rico. B&G Foods has a Zacks Rank #2 and a market capitalization of $1.9 billion. It has a dividend yield of 6.47% Janus Henderson Group plc ( JHG Quick Quote JHG - Free Report) – Up 32.9% With a market cap of $5.9 billion, this investment management company provides investment advisors for equities, fixed income, property and private equity sectors. The stock has a Zacks Rank #2 and 4.43% in annual dividend yield. China Yuchai International Limited ( CYD Quick Quote CYD - Free Report) – Up 28.9% This company manufactures and sells diesel and natural gas engines in the People's Republic of China and internationally. It has a Zacks Rank #2 and a market capitalization of $701.9 million. The stock has an annual dividend yield of 4.95%. Triton International Limited ( TRTN Quick Quote TRTN - Free Report) – Up 20.8% This company is engaged in the acquisition, leasing, re-leasing, and sale of various types of intermodal containers and chassis to shipping lines, and freight forwarding companies and manufacturers. It has a Zacks Rank #2 and a market capitalization of $3.3 billion. Triton International yields 4.70% in annual dividends. Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021? These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold.
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