3 Dividend Stocks Yielding More Than 4% That Are Safe Buys in 2020
After a strong year on the markets in 2019 that saw the S&P 500 rise by 30%, many stocks are trading at relatively high valuations and could be due for corrections this year. Finding a good, fairly valued dividend stock can be challenging this year. However, the stocks listed below all trade at reasonable valuation multiples, have good financials, and can deliver strong dividend income for your portfolio for many years to come.
BCE (NYSE: BCE) is a top Canadian telecom stock that currently pays investors a quarterly dividend of approximately $0.60 every quarter, depending on the exchange rate. That equates to a dividend yield of more than 5.2% per year. The company has increased its dividend every year since 2009, and although it doesn't have as long a track record as a Dividend Aristocrat may have, BCE is a safe bet to continue raising its payouts for the foreseeable future.
Strong free cash flow totaling 3.8 billion Canadian dollars over the trailing twelve months and annual profits over the past three years consistently hovering around CA$3 billion make the stock a very safe buy for investors, as there is a great deal of predictability in its future earnings. BCE had a solid 2019 with its share price climbing 17% during the year, although that was still shy of the S&P 500's impressive performance.
Source Fool.com