Income investors looking for more than just a little yield: These are the top dividend stocks for 2021, according to the pros.
One thing is clear when looking at the analysts' best
dividend stocks right now: Wall Street expects big things from the beaten-down
energy sector in 2021.
The pros are betting that the post-pandemic landscape will
feature an increase in energy needs and perhaps a recovery in commodity prices,
among other factors. And with the oil and gas industry expected to bounce back
in the year ahead, the Street's most highly rated dividend stocks for 2021
include energy stocks of all stripes: oil and gas drillers, pipeline companies,
oilfield services, and other sector names.
Although energy-sector names are over-represented on our
list of analysts' favorite dividend payers, banks, pharmaceuticals and consumer
staples also make appearances.
To find analysts' most beloved dividend stocks, we scoured
the S&P 500 for dividend stocks with yields of at least 3%, excluding a
number of extremely high yielders because of excessive risk. (Sometimes, a
too-high yield can be a warning sign that a stock is in deep trouble.)
From that pool, we focused on stocks with an average broker
recommendation of Buy or better. S&P Global Market Intelligence surveys
analysts' stock ratings and scores them on a five-point scale, where 1.0 equals
Strong Buy and 5.0 means Strong Sell. Any score of 2.5 or lower means that
analysts, on average, rate the stock a Buy. The closer the score gets to 1.0,
the stronger the Buy call.
Lastly, we dug into research, fundamental factors and
analysts' estimates on the top-scoring names.
That led us to these top 25 dividend stocks for 2021, by
virtue of their high analyst ratings and bullish outlooks. Read on as we
analyze what makes each one stand out.
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