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5 Dividend Stocks That Could Help You Pay Monthly Bills

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The year 2020 commenced with the expectation that the long period of low interest rates will finally end. However, in a drastic turn of events, COVID-19 outbreak dented the U.S. economy, with unemployment rate soaring from 3.6% in January to 14.7% in April. Notably, the global pandemic dealt a severe blow to most of the industries, with countless deaths, disruptions in business operations, financial fragility of businesses along with increased number of filed cases for unemployment benefits.

The Federal Reserve had to come up with some bold measures to stem further rot in the economy that include lending programs and slashing of interest rates to zero in March. Notably, the central bank has decided to keep interest rates near zero until the economy reaches the maximum employment level with a healthy inflation rate. Amid an uncertain near-term economic outlook, the 10-year Treasury yield has gone down below 1% since March. The pandemic-related business uncertainties, along with the historical low levels of treasury yields, have left income investors with very few attractive options to consider.

Adding to these worries are concerns related to the new coronavirus strain in the U.K. Amid such a scenario, risk-averse investors should consider focusing on high-yield dividend securities that provide them with a source of consistent income and opportunity for long-term wealth creation. With a steady income stream through regular dividend payouts with sizable yields, these stocks enable investors to hedge against economic uncertainties.

Below, we have highlighted five such stocks that have been rewarding shareholders with healthy dividend payouts, backed by their inherent financial strength. These stocks carrying either a Zacks Rank #1 (Strong Buy) or 2 (Buy), have a dividend yield of greater than 5%, market capitalization of more than $100 million and have the potential to outperform the market. You can see the complete list of today’s Zacks #1 Rank stocks here. In order to narrow down the choices, we have selected stocks that have VGM Score of A or B.

China Petroleum & Chemical Corporation (SNP - Free Report) : Headquartered in Beijing, China, the company is a major petroleum and petrochemical companies in Asia. Also, it is the second largest crude oil and natural gas producer, and the largest refiner and marketer of refined petroleum products in China. Notably, China Petroleum has made major progress in identifying attractive and economically viable oil and natural gas reserves in several fields. This has brightened its production outlook amid improving oil pricing scenario. Also, the company’s strong balance sheet adds to its strength. The Zacks Rank #1 company has a VGM Score of A and a dividend yield of 7.6%.

Vodafone Group Plc (VOD - Free Report) : Based in Newbury, the United Kingdom, Vodafone is a leading provider of telecommunication services in Europe and other parts of the globe. The company is well poised to benefit from its strong subscriber base and growing opportunities in emerging countries. Also, its focus on the rollout of superfast 5G technology across the United Kingdom, along with its cost-control measures, bode well. The Zacks Rank #2 company has a VGM Score of A and dividend yield of 6.4%.

Global Partners LP (GLP - Free Report) : The Waltham, MA-based company is a vertically integrated energy partnership focused on the distribution of gasoline, distillates, residual oil and renewable fuels, apart from owning several refined-petroleum-product terminals. Unlike most energy operators, which have maintained their payout, Global Partners has continued to increase its distributions in 2020. The Zacks Rank #2 company has a VGM Score of A and a dividend yield of 11.8%.

Hess Midstream LP (HESM - Free Report) : Based in Houston, TX, Hess Midstream owns, operates, develops and acquires a set of midstream assets to provide services to Hess and third-party crude oil and natural gas producers. The company’s integrated assets, strategically based in the core of the Bakken, along with its focus on investing in the infrastructure base, gives it a competitive edge over its peers. A healthy balance sheet also adds to its strength. The Zacks Rank #1 company has a VGM Score of A and a dividend yield of 8.6%.

Green Plains Partners LP (GPP - Free Report) : Headquartered in Omaha, NE, Green Plains provides ethanol and fuel storage, terminal and transportation services by owning, operating, developing and acquiring storage tanks, terminals, transportation assets and other related assets and businesses. The company is poised to benefit from organic projects, acquisitions of complementary assets, addition of ultra-high protein production technology and cost reduction initiatives. The company has Zacks Rank #2 with a VGM Score of B and a dividend yield of 6%.

The addition of these stocks will likely play a defensive role in investor’s portfolio and can help reduce volatility in uncertain markets, thus aiding them in paying regular monthly expenditures.

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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