The future has never been more uncertain. We are amid a once-in-a-century pandemic. Add in the fact that President Trump is contesting the election results, and there is even more potential for things to go awry.
This is a time to give serious consideration to shifting money out of tech stocks and growth stocks in favor of comparably conservative dividend stocks…
Let’s take a look at five of the top dividend stocks every investor should consider holding through the second wave of the coronavirus: Johnson & Johnson (JNJ), Verizon Communications (VZ), NextEra Energy (NEE), Target (TGT), and Atlantica Yield (AY).
JNJ is as reliable as it gets. The company’s diversified approach to business ensures no single economic setback or other occurrences will significantly diminish revenue. JNJ provides a dividend of 2.77%. All in all, JNJ has 250 subsidiaries, many of which will fare well even if a second wave of the virus spreads across the land.
Add in the fact that JNJ has one of the largest budgets of all the pharmaceutical companies, and there is even more reason to own the stock during the pandemic. JNJ has an “A” Peer Grade and “B” grades in the Buy & Hold and Industry Rank POWR Rating components. JNJ is ranked sixth of 240 stocks in the Medical – Pharmaceuticals space.
The average analyst price target is $169, meaning it has a potential upside of 15%. JNJ’s forward P/E ratio is fairly low at 18.33. Furthermore, JNJ has a comparably low beta of 0.68, meaning the stock could hold steady even if the market significantly falls.
Verizon Communications (VZ)
VZ has a dividend of 4.19%. The company’s phone, data, and wireless services will be in demand through the second wave of the virus and long beyond that point in time. In short, you should feel good investing in the largest wireless service provider on the continent.
The POWR Ratings show VZ has “A” grades in the Peer Grade and Buy & Hold Grade components. The stock is ranked second of 25 in the Telecom – Domestic industry.
The average analyst price target is…
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