The dividend stocks we’ve identified have the ability to produce steady gains in 2020 and beyond
SmallCapPower | May 21, 2020: COVID-19 related stock market volatility likely has many investors longing for steady returns. Today we have found three dividend stocks expected to generate solid gains even during the current investing environment.
*Returns are based on closing stock prices as of May 20, 2020
Fortis Inc. (TSX:FTS) (NYSE:FTS) – C$51.02
Fortis is a North American regulated electric and gas utility industry provider, with 2019 revenue of $8.8 billion and total assets of $57 billion as at March 31, 2020. The Company serves utility customers in five Canadian provinces, nine U.S. states and three Caribbean countries. Fortis has a history of being a true ‘Steady Eddy’ grower, with 46 consecutive years of dividend increases with 6% average annual dividend growth planned through 2024. In fact, an investor who bought Fortis stock 20 years ago would have enjoyed an average annual return of more than 14%. Nearly 100% of the Company’s earnings is expected to come from regulated and/or long-term contracted utility infrastructure. FTS stock has a current dividend yield of 3.7%.
- One-Year Return: 8% (including dividends)
The Clorox Company (NYSE:CLX) – US$204.24
The multinational manufacturer and marketer of consumer and professional products had fiscal 2019 net sales of US$6.2 billion. When consumers think of Clorox, bleach probably comes to mind first, but the Company also produces disinfecting wipes in addition to well-known brands such as Glad garbage bags and Pine-Sol liquid cleaner. Regardless of the recent hoarding, COVID-19 will likely result in a generation shift in how consumers view household disinfection products. On May 19, Clorox announced that it will raise its quarterly dividend by 5% to $1.11 per share. Its stock has a current dividend yield north of 2%.
- One-Year Return: 45% (including dividends)
Gilead Sciences, Inc. (NASDAQ:GILD) – US$73.89
Gilead Sciences is a research-based biopharmaceutical company that discovers, develops and commercializes innovative medicines in areas of unmet medical need. Investors had hoped that Gilead’s experimental drug remdesivir could be the best option for treating COVID-19 but, regardless, the Company’s HIV drugs generate billions of dollars in sales. Gilead also has its CAR-T cell therapies for treating cancer and its treatment of rheumatoid arthritis, filgotinib, could receive FDA approval later this year. Gilead stock is currently yielding nearly 4%.
- One-Year Return: 20% (including dividends)
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
To read our full disclosure, please click on the button below:
