3 Dividend Stocks to Buy Before 2021
With the world thrown into chaos because of pandemic, high-growth tech stocks have been all the rage in 2020. But it doesn't mean that investing in more mature dividend-paying companies is dead. On the contrary, some are doing quite well and are still generating ample profits to cover their investor paydays. Three that our Fool.com contributors think are buys before the start of 2021 are Comcast (NASDAQ: CMCSA), Broadcom (NASDAQ: AVGO), and Lumen Technologies (NYSE: LUMN).
Nicholas Rossolillo (Comcast): Comcast isn't exactly a beloved business. Many consumers lament being locked into its Xfinity internet services due to lack of competition. Regardless of your feelings on the company, though, it's a solid business that provides a modern staple. And thanks to a couple million net new high-speed internet connections this year and nearly 800,000 new wireless phone connections (Comcast piggybacks off of Verizon's network), Comcast has been a solid stock to own in 2020. Shares are up 16% year to date following strong third-quarter performance.
In fact, these growing internet and related connectivity services are what have kept Comcast's dividend a stalwart investment even during the pandemic. Shares currently provide an annual yield of 1.8%, but the shareholder payout ate up only 30% of the company's free cash flow generation (revenue minus cash operating and capital expenses) through the first nine months of 2020. As effects from COVID-19 wear off, there's plenty of room for dividend payment increases in the years ahead.
Source Fool.com
