Top-10 US dividend stocks

For the U.S. stock market, 2021 promised to be a year of stable recovery after the economic catastrophe provoked by the coronavirus.

At the beginning of 2021, it is considered that the overall year would be favourable to collect a dividend portfolio in the United States:

• the unemployment rate has fallen to 6% (compare monthly with 14.7% in April last year);
• the coronavirus has pushed the market to rapid growth in specific industries – e-commerce, technology, and biotechnology are growing sharply in price;
• large U.S. corporations have adapted to the conditions of doing business during the pandemic – blue chips provide a stable income.

Below you will find the best U.S. dividend stocks in 2021. In addition, we have compiled the top 10 profitable American stocks with a long-term income calculation.

International Business Machines Corp. (IBM).

Dividend amount: $1.63.

Dividend yield: 5.3%.

IBM is one of the elders of the computer technology market. But in recent years, the Company’s business has not been smooth. With the development of the Internet, customers lost interest in centralized computer systems, and in the network segment, the manufacturer had nothing to offer. As a result, it led to a sharp drop in annual income and the share price.

For brokers who speculate on price differentials, the current negative trend is enough to stay away from IBM shares. However, long-term income-oriented investors have good reasons to add IBM to their dividend portfolio:

• Regular increase in dividend payments. Dividends for periods during the year may fluctuate. Still, if you compare the indicators by year, you can see a stable positive trend that the Company has maintained over the past ten years.
• The Company’s dividend policy. IBM is an American “conservative” company – the Company provides a gradual increase in income for long-term investors, regardless of market fluctuations.
• Big restructuring. IBM is moving away from the production of desktop computers in the direction of cloud technologies and user services.

The transition to cloud services is not cheap for IBM – the Company has invested more than $120 billion over the past nine years in restructuring and production research. But significant expenses are followed by big profits, and shareholders willing to wait a little longer will get them first.

FedEx Corp. (FDX).

Dividend amount: $0.65,.

Dividend yield: 0.93%.

It included the leading postal and courier FedEx Corp in the United States in the list of corporations that managed to grow in value during the pandemic. The boom in e-commerce and the sharp increase in the popularity of online stores allowed FedEx to rise to a new round of popularity. Right now, that’s more than affordable U.S. stocks with high dividends.:

• net income tripled over the past year – from $315 million to $892 million.
• analysts expectли growth of at least 20% in 2021.
• in 2022 – at least 5%.

Even though the explosion in demand for FedEx services is temporary, experts note the growth prospects for the most significant American delivery service. Even as the “unprecedented peak season” for FedEx comes to an end, e-commerce will continue to evolve, and with it, the Company’s dividend yield will grow. Since 2011 alone, payouts for the Company’s stockholders have increased 6-fold; analysts advise investors who want to catch another bearish “triumph” to buy shares now.

Philip Morris International, Inc. (PM).

Dividend amount: $1.20.

Dividend yield: 5.41%.

In the history of the American tobacco giant Philip Morris International – there are more than ten years of stable dividend growth. Despite global trends of declining interest in tobacco, Philip Morris shares continue to grow. In the next few years, the PM expects about 40% of the Company’s revenue growth due to profits from the sale of smokeless products: electronic cigarettes, IQOS tobacco heating systems, cartridges and accessories.

In the last quarter of 2020, it included the Company for the first time in the Dow Jones Industrial Average, one of the oldest American stock indexes, which consists of the 30 largest U.S. companies. Despite the apparent growth of Philip Morris, shares remain affordable: many investors miss out on a good offer for ethical reasons. The Company has not yet been able to find a completely harmless way to consume heated tobacco, so IQOS – the primary source of growth for Philip Morris in 2020 – is considered “unclean” earnings. Analysts advise shareholders who do not suffer from unnecessary prejudices to take advantage of a favourable opportunity and buy profitable shares before it is too late, even if they belong to the “terrible” tobacco company.

Target Corp. (TGT).

Dividend amount: $0.68.

Dividend yield: 1.5%.

The chain of American discounters is less familiar to many investors than the legendary Walmart stores. However, Target offers high-dividend shares with an annual increase in payments – by 2021, the dividend has grown to an unprecedented 35%.

Target Corp is a worthy addition to any investment portfolio. The Company annually tops the U.S. economic growth stability ratings. This trend, set since 1972, does not go down even during the pandemic: in 2020, Target’s payments increased by 3% while other companies tightened the knots. Analysts expect an average annual growth of 14% over 3-5 years.

In addition to traditional retail, Target offers investors attractive prospects in e-commerce. Although e-commerce currently accounts for only a tiny segment of Target, this segment grew by 150% last year before doubling during the New Year holidays. 2022-2023 may be a period of unprecedented economic growth for one of the oldest retailers in the United States, paying significant dividends.

Johnson & Johnson (JNJ).

Dividend amount: $1.01.

Dividend yield: 2.47%.

Before the pandemic, investors who bought J&J shares made record profits, but new players still had time to get on the train. Founded in 1886, the Company owns more than 250 subsidiaries
to produce medicines, sanitary products and medical equipment. As a result, it is a safe investment option – whatever happens to the U.S. economy, international profits from the medical and personal care industries will continue to grow. Moreover, J&J, as a shareholder-oriented company, raises the number of dividend payments every year without missing a beat. The only difference is the number of dividend increases, which depend on commercial growth.

In the second quarter of 2020, Johnson & Johnson shares were recommended by experts as the best candidate for rapid growth. In 2021, hopes of increasing revenue from shares of the medical giant were associatedаны with the production of the COVID-19 vaccine. Regardless of expectations this year, it is already clear that J&J remains on the list of the best “blue chips” in the United States: whatever the situation in the country, the Company annually increases at least 5% of revenue.

PepsiCo, Inc. (PEP).

Dividend amount: $1,0225.

Dividend yield: 2.89%.

Comparing the profitability of Coca-Cola and Pepsi over the past few years opens up an unexpected trend: it seems that Pepsi has been winning this war, and for quite some time now. The Company has conquered the world with its impressive geographical and commercial diversity.

While Coca-Cola’s stock returns are declining as demand for sugary sodas falls, PepsiCo is managing to grow. The Company’s flagships are the Doritos snack chain, Tostitos, Rold Gold crunchy pretzels and other young but successful fast-food brands. The demand for salty snacks has not been shaken even by the pandemic – PepsiCo expects annual profitability growth of 6.8% in the next 3-5 years.

Given that PepsiCo shares have been steadily rising in price over the past couple of years, experts do not advise waiting for a better moment – in2022, market fluctuations will not affect them.

AT&T, Inc. (T).

Dividend amount: $0.52.

Dividend yield: 6.8%.

Among profitable telecommunications companies, AT&T ranks only second – first place is consistently held by Verizon Communications. Howeverпривлекательность, AT&T’s investment appeal is not limited to its monthly T.V. subscription fee. The Company owns a vast media empire that includes:

• CNN news channel;
• Cinemax, an American cable television network;
• Warner Bros – is the largest film production company in the United States;
• D.C. comics is the most popular comic book publisher in the world;
• as well as other American and international media giants.

Optimistic forecasts for 2021 and the current year are associatedаны with the release of the expected blockbusters: “Matrix 4”, “Space Jam: A New Generation” and the prequel to the series “The Sopranos”. In addition, it will release upcoming hits simultaneously on AT&T’s HBO Max platform, attracting new subscribers.

The Company now pays a 6.8% dividend, suitable for a new investment portfolio. In the next few years, payments will only grow due to the increased customer base of numerous media services, the capitalization of creative franchises and the development of promising 5G technologies.

Crown Castle International Corp. (CCI).

Dividend amount: $1.33

Dividend yield: 3.04%.

Crown Castle International shares are often bought in addition to the shares of their big-name customers-AT&T, Verizon Communications and T-Mobile, which share three-quarters of the U.S. telecommunications market. So regardless of which of the “big three” is the first to succeed in mastering the new generation of 5G networks, Crown Castle International will earn money from this – and will not forget to share it with investors.

IBM has increased its dividend payments by 8% per year for five consecutive years. It is an excellent indicator of the active American market – even in a global pandemic, communications are developing rapidly. Moreover, CCI has more than 40 thousand cell towers and about 130 thousand kilometres of fibre and plans to build its own 5G network of a new standard. Such “baggage” is a solid bid to maintain the 25-year leadership, so CCI shares steadily increase the price.

eBay, Inc. (EBAY).

Dividend amount: $0.18.

Dividend yield: 1.13%.

In 2021, eBay showed projected growth due to increased demand for e-commerce services. In April 2020, the Company was led by former Walmart top manager Jamie Iannone, who managed to achieve an increaseа in net profit by almost 68%. Yannone is very familiar with eBay – he worked with the site for eight years before taking the vice president at Barnes & Noble.

Ebay’s new priority is to support online stores and promote its e-wallet. The Company plans to gradually popularize it in all countries after the end of agreements with PayPal – and the experience of the previous year shows that consumers perceive the eBay payment system positively.

Analysts expect rapid growth of the former “conservative” runoff in the next few years. By adding eBay shares to the dividend portfolio, investors expect to see at least 16% growth in 2021, with a positive trend in the next 3-4 years. While it can still buy the Company’s shares cheaply – the price is consistently below $70 apiece. But as the changes initiated by Mr Iannonne are implemented, eBay is growing in price: back in April last year, shares were trading at $30, and by next year the price may increase by another 2-3 times.

Kimberly-Clark Corp. (KMB).

Dividend amount: $1.14.

Dividend yield: 3.28%.

Kimberly Clark Corp is a safe choice for any American portfolio. This group of companies only works with “boring” but inevitably profitable areas. Moreover, the conservative distribution of funding means that Kimberly-Clark is not in danger of falling during the economic crisis. As a result, accurate and sharp jumps in profits can not be expected.

The world knows Kimberly-Clark mainly because of Haggis diapers, Kleenex toilet paper and Scott paper towels. The Company also produces masks and other personal protective equipment. Experts predict annual growth of only 2.6% for the next 3-5 years despite the favourable conditions. It’s all about the professional segment: K-C is losing large corporate clients amid the pandemic. Office buildings, public restrooms, and fast food chains were Kimberly-Clark a significant source of income for Kimberly-Clark – but they proved to be an Achille’s heel in the context of COVID-19.

At the same time, K-C stocks continues to grow – in January 2021, the board of directors approved a 6.5% increase in dividends for the quarter. The Company has once again demonstrated its loyalty to its shareholders. This rate remains unchanged for Kimberly-Clark for 84 consecutive years, due to which the Company remains a mandatory recommendation for investors focused on long-term income.

Results.

The U.S. equity market provides the best conditions for building an investment portfolio. In addition, the unique economic conditions of America allow you to choose profitable options for stable long-term earnings even in a difficult period of the global pandemic.

Experts do not recommend limiting the portfolio to shares of companies that have risen due to changes in consumer demand against the background of COVID-19. Although there are companies among the American leaders in dividends in 2021 that have reached their potential during the crisis, it should combine such stocks with “conservative” options – at least if you are building a working portfolio and not planning to make a quick profit on stock trading.

The best dividend stocks are held by American holdings that develop several parallel directions. At the same time, their annual growth may be lower than that of the “one-time miracles” of previous years: this is the fee for stability and regular increase in dividend income.

This article is for informational purposes only and does not constitute an investment recommendation for buying or selling securities, making (or not making) any commercial or other decisions.

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