Should Investors Buy These Top 3 Dividend Stocks Now?
If there’s one thing investors want, it’s solid dividend stocks that can produce a steady income stream that can sustain them throughout their life. But that’s usually not quite possible unless you are investing in the millions. However, if you are looking to buy a dividend stock that could sustain your retirement life which is twenty or thirty years down the road, then it is a more realistic and attainable goal. While investing in fixed income options like bonds can deliver yields, they don’t offer growing yields as top dividend stocks do.
No doubt, investing in dividend stocks during this bull market isn’t necessarily a wise thing to do. But then again, no one likes to focus on dividend stocks until the music stops. Of course, if you can find dividend stocks that can deliver above average income and steady stock price appreciation, that’s even better. Some of the bigger names out there with solid dividend yields are IBM (IBM Stock Report) and Universal Corp (UVV Stock Report). While some dividend stocks were hard hit by the coronavirus pandemic, others continue to rise. And they could continue riding higher. With that in mind, let’s focus on a few dividend stocks that could manifest this growth.
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Top Dividend Stocks To Buy Right Now: Medical Properties Trust
Medical Properties Trust (MPW Stock Report) is one of the best dividend stocks to buy right now. That’s considering it pays investors 5.8% on an annual basis. The company is also a triple-net lease REIT, which means its tenants are responsible for taxes, upkeep and maintenance on the properties.
That keeps the company’s costs of ownership low. The trust manages properties and is always on the lookout for ways to grow. It has been expanding overseas in the past few years. That added further diversification to its portfolio. Besides, that helps hedge against any potential downside should there be unfavorable changes in the U.S. healthcare policy.
For prospective investors, there isn’t much to worry about with Medical Properties dividend yield. Even though its yield is a little high, it doesn’t appear to be too good to be true. It has a defensible business model focusing on the healthcare industry. And rent collection is not an issue. With these in mind, would you consider adding MPW on to your watchlist?
Top Dividend Stocks To Buy Right Now: Brookfield Renewable Partners
Brookfield Renewable Partners (BEP Stock Report) is one of the best energy stocks to buy in 2020. It is a master limited partnership, which allows it to avoid taxes by paying out mandatory dividends. Brookfield Renewable is not entirely an energy company.
But it’s more like a hybrid between energy and utility. The company generated energy through wind, solar, hydroelectric, co-generation, and biomass sources.
The rising demand for renewable energy across Canada should allow the company’s stock to continue outperforming the broader market for many years to come. Speaking of dividends, the company currently has a dividend growth streak of 11 years. Also, the management plans to continue to grow the annual distribution at a rate between 5% and 9%. This makes BEP one of the best dividend stocks to own right now.
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Top Dividend Stocks To Buy Right Now: TC Energy
Canadian pipeline giant TC Energy (TRP Stock Report) yields 5.1%. Similar to those on this list, that payout is likely to be sustainable. That’s simply because the company has a resilient business model that insulates it from fluctuations in commodity prices and volumes. We can see this during the second quarter.
TC Energy’s cash flow remained stable. It declined slightly only because of asset sales. The asset sales will help to finance the company’s expansion projects.
That should provide a catalyst to grow its dividend by about 8% to 10% next year, and 5% to 7% annually thereafter. That would be a desirable achievement on top of its already impressive track record of growing dividends for 20 consecutive years. This makes TRP an attractive dividend stock to add to your portfolio.
