Börse Express – 3 Great Dividend Stocks That Could Be a Buy Now

Dividend stocks are anything but grandpa investments. Sure, they are great for generating important retirement income. But they can also serve younger investors well by paying a dividend. This can then be invested in other stocks.

Here’s a look at three promising dividend stocks to consider for your portfolio.

1. AT&T

AT&T (WKN: A0HL9Z) is certainly a very well-known name – and also an impressive dividend payer: The yield is currently a whopping 6.6%. That payout hasn’t grown very quickly – at about a cent a year for more than a decade. But when you start with a 6.6% return, growth isn’t that important.

However, it’s important that every company you invest in is healthy and growing – or at least that it has solid growth potential. AT&T has a lot of potential, but also headwinds. For one thing, the company is heavily indebted, and some are demanding that the dividend be suspended, cut, or canceled altogether. It costs the company more than $ 14 billion annually. However, the company has already done something in that regard by not increasing its payout in more than a year. This ended the 36-year series of annual increases.

Another problem for AT&T is the DIRECTV division, which has been losing subscribers for years. Customers simply prefer streaming services. AT&T struggled to divest the business and recently signed a deal to spin off the business into a new company. A 70% stake will be retained, while the private equity firm TPG holds a minority position.

Meanwhile, the telecommunications giant’s latest earnings report for the first quarter has been solid, suggesting that the company has a lot of good ahead of it. CEO John Stankey said: “We have continued to distinguish ourselves through growing customer relationships in our market areas of mobility, fiber optics and HBO Max.”

2. Altria

Altria (NASDAQOTH: 200417) is a stock that may not be for everyone. But if you’re happy with a 7.3% dividend yield and you don’t mind that most of that money comes from tobacco sales, then you should consider it. As with AT&T, the stock’s return is so high in part because the stocks have been penalized over the past several years due to concerns about the company’s future. While there are signs that AT&T is turning the corner, many are still skeptical about Altria. Of course, smoking is no longer a growth industry in the US.

However, Altria saw the signs of the times and paid a princely sum to participate in Juul Vaping. That didn’t go as planned and led to some heavy write-offs. But vaping is growing and the investment could end up paying off more than currently expected.

Meanwhile, CEO Billy Gifford says that “our 10 year vision is to responsibly lead the adult smoker transition into a future where tobacco is no longer burned”. Altria’s non-combustible irons in fire include oral tobacco, electronic vaporizers, and tobacco heaters. The company also has a controlling interest in the on! Branded nicotine pouches.

Altria’s first quarter results will be released in late April. But the company ended its 2020 fiscal year quite well with sales and profits increasing. Another way to increase the share price is through share buybacks. The company announced a $ 2 billion buyback plan.

Altria may not serve you well for decades. But it looks like it could at least for a couple of years during which it pays a fat dividend. You just have to keep an eye on the company and the payout and consider an exit if insurmountable challenges arise. For example, a current concern is the possibility of regulations that limit nicotine levels.

3. Broadmark Realty Capital

Broadmark Realty Capital (NYSE: REIT) is a real estate investment trust (REIT), which means that the company must distribute at least 90% of its profits as dividends. More specifically, it is a mortgage REIT, or “mREIT” that focuses on lending to the construction industry.

Unlike many other lenders who lend a lot of money they borrowed, Broadmark is more conservative. The company avoids its own debts. Also, unlike many mortgage lenders, his loans are usually short-term, as builders only have to take out loans until they have finished building. They also charge higher interest rates than normal mortgages. Often it is more than 10%. And customers pay, often by taking out additional credit.

What kind of dividend yield does Broadmark offer? Broadmark pays a monthly dividend instead of the typical quarterly dividend and recently posted a whopping 7.9% return. While Altria, and to a lesser extent AT&T, are facing headwinds, Broadmark’s business appears to be more stable. In any case, you should take a closer look if this area appeals to you.

These are just three of the many great dividend-paying stocks out there. There are tons of others to look at. It is important that you have part of your portfolio in dividend-paying shares. As a regular income now or in retirement.

The item 3 Great Dividend Stocks That Could Be A Buy Now first appeared on The Motley Fool Deutschland.