With the Federal Reserve pushing and holding interest rates near zero, many investors are currently struggling to generate yield today.
Add in a relatively high unemployment rate and a seesaw market caused by COVID-19, and the task of finding reliable dividends in this environment becomes even more difficult.
Whether you’re in retirement or not, generating consistent income can help you navigate the toughest market cycles.
That’s why I want to bring you 10 top dividend stocks to buy now…
Each company pays its shareholders reliable yield that can help you weather the ups and downs of the unpredictable market we find ourselves in today…
No. 10: American Tower Corp. (NYSE: AMT)
Dividend Yield: 2.2%
Founded in 1995, American Tower Corp. (NYSE: AMT) owns and operates roughly 180,000 cell towers throughout the U.S., Asia, Latin America, Europe, and the Middle East.
[finviz ticker=AMT]The company leases space on its towers to wireless service providers, which install equipment on the towers to support their 4G and 5G wireless networks.
AMT operates more than 40,000 towers in the U.S., which accounted for more than half of its total revenue in 2019.
Its largest customers include AT&T (16% of revenue), Verizon (15%), Spring (9%), and T-Mobile (9%).
Outside the U.S., American Tower’s greatest presence is in India and Brazil, where it operates roughly 75,000 and 19,000 towers, respectively.
AMT is one of the leaders in new 5G towers being constructed today and it’s very profitable.
From fiscal 2018 to 2019, the firm increased its net income by 53% and the stock rose 63%.
And I think those profits could reasonably increase further as 5G continues rolling out throughout 2021.
All the while, you can collect a 2.2% annual dividend yield just for buying and holding the stock today.
That’s more than double the 0.9% yield on the 10-year U.S. Treasury.
No. 9: Texas Instruments Inc. (NASDAQ: TXN)
Dividend Yield: 2.5%
While much of the general population knows Texas Instruments Inc. (NASDAQ: TXN) for its TI-83 and TI-84 graphing calculators, the Dallas-based tech firm actually generates about 95% of its revenue from semiconductors.
[finviz ticker=TXN]In fact, with $14.4 billion of revenue in fiscal 2019, Texas Instruments is the world’s largest maker of analog chips. These are used to process real-world signals such as sound and power.
Texas Instruments also has a leading market share position in digital signal processors. Those processors are used in 5G wireless communications and microcontrollers in a wide variety of electronics applications.
TXN’s 2.5% dividend yield is also more than double the 10-year U.S. Treasury. And it’s poised to continue outperforming the S&P 500…
So, buy this 5G dividend tech stock and tuck it away in your portfolio for the long-term.
Related: A Storm Is Coming…
No. 8: CVS Health Corp (NYSE: CVS)
Dividend Yield: 2.7%
You know CVS. Surely, you’ve been to one or more of their 9,967 retail pharmacy locations at one point or another.
[finviz ticker=CVS]But in case you’re unaware, CVS Health Corp. (NYSE: CVS) is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain, CVS Caremark, a pharmacy benefits manager, Aetna, a health insurance provider, and many other brands.
A lot of investors forget CVS bought Aetna (the nation’s third-largest health insurer at the time) for $69 billion back in 2018… But that’s what gives it a huge advantage over its main competitors, Walgreens and Rite Aid.
You see, about 40 million people rely on Aetna to help them make decisions about their health care and their health care spending.
So, CVS is becoming the preferred pharmacy of choice for these customers because it’s reducing the cost of providing care to Aetna’s customers.
CVS is able to do that and still remain profitable because it doesn’t have to spend as much money acquiring new customers now that it owns Aetna.
And the health information CVS gains from Aetna allows it to better services its 75 million plan members who rely on the pharmacy for their prescription drugs.
Related: The Guardian: “New pill could spell the end of aging.”
CVS stock took a hit with the broader market back in March, falling 32.5%. Since then, it has rallied nearly 40%, but I still think the company is undervalued…
Fortunately, that allows long-term investors to lock in a 2.7% dividend (almost double the average S&P 500 company of 1.6%) at its current share price.
As long as the stores remain open, look for CVS to reach new all-time highs in 2021.
No. 7: Boston Properties Inc. (NYSE: BXP)
Dividend Yield: 3.9%
Boston Properties Inc. (NYSE: BXP) is a real estate company that owns the largest portfolio of predominantly “Class A” office space in the United States.
[finviz ticker=BXP]Class A properties represent the highest quality buildings in their market. These are generally new properties built within the last 15 years with top amenities, high-income earnings tenants and most importantly, very low vacancy rates.
Boston Properties is organized as real estate investment trust (REIT), which means it’s legally obligated to pay out 90% of its taxable income as dividends to its shareholders every year.
Like many companies in March and April, BXP stock price took a hit when Covid-related lockdowns began.
But its current share price is a bargain compared to where it was just eight months ago at its all-time high of $148.
Regardless of how the overall market has acted over the last year, Boston Properties has remained resilient. The company beat its earnings per share (EPS) estimates each of the last four quarters.
No matter what happens from now until the end of the year, the Class A properties BXP owns will always be in high demand.
Related: Viral Video Is Freaking Out Billionaires
All of this combined with BXP’s reliable 3.9% dividend payment make Boston Properties a prime stock to buy on the rebound.
No. 6: Innovative Industrial Properties Inc. (NYSE: IIPR)
Dividend Yield: 3%
Innovative Industrial Properties Inc. (NYSE: IIPR) has already carved out a name for itself in the up-and-coming cannabis space.
[finviz ticker=IIPR]
Unlike marijuana producers and suppliers (but like BXP), IIPR is a real estate investment trust.
This means the company owns and manages a variety of retail spaces, cultivation facilities, and processing plants that it leases out to operators in the industry.
And as the marijuana market continues to grow, investors benefit from exposure to its diversified properties. This makes it a safer option for those interested in capitalizing on the industry, but aren’t sure where to start.
Plus, it comes with all the standard perks of being a REIT. In addition to paying 90% of its taxable income to shareholders through dividends, it’s also growing with strong fundamentals…
In IIPR’s most recent quarter, the company reported $34.4 million in revenue, a 197% increase from the same period in 2019. The REIT’s funds from operations surged by 192% to $27.9 million.
The cannabis REIT has $161 million in cash and cash equivalents as well as $451.2 million in short-term investments. This equals out to $612.3 million in cash while only having $143.7 million in debt.
As states continue to legalize cannabis, cultivation and other operations will become more prevalent. When they do, many marijuana companies will likely turn to IIPR to set up shop.
No. 5: AbbVie Inc. (NYSE: ABBV)
Dividend Yield: 5%
Pharmaceutical giant AbbVie Inc. (NYSE: ABBV) was founded in 2013 as a spinoff from Abbott Laboratories. Now, it’s a highly profitable company that owns the best-selling drug in the world, Humira.
[finviz ticker=ABBV]
Humira is a human antibody-based medication used to treat inflammation from conditions like rheumatoid arthritis.
While the company’s patent on the drug will run out in 2023, it’s taking major steps to come out on top. Even as competition looms ahead, the company has begun to diversify its business.
Over the last two years, ABBV has made a series of strategic investments. Earlier this year, the company finalized its $63 billion acquisition of Botox maker Allergan. The deal provided the company with more than 180 potential products.
Meanwhile, ABBV has put in the time to build out its treatments in oncology, virology, and neuroscience. Throughout 2020, the company has developed drugs for lung cancer as well as performed studies relating to blood cancer.
These efforts are paying off for ABBV. And they’ll likely continue to benefit the company as it further expands businesses between now and 2023.
In the drug giant’s third quarter, ABBV noted earnings came in at $2.83 compared to Wall Street’s expected earnings of $2.76. The company reported revenue of $12.88 billion, beating the estimate of $12.72 billion.
Related: The #1 Biotech Stock of 2020 (New Report)
In ABBV’s press release, the company’s CEO Richard Gonzalez said while 2020 continues to exceed expectations, it also has several drugs in its pipeline thanks to its Allergan acquisition and other strategic measures.
This has pushed the company to raise its quarterly dividend payout by 10.2% from $1.18 per share to $1.30.
No. 4: Kinder Morgan, Inc. (NYSE: KMI)
Dividend Yield: 7%
Another optimal buy-low option is Kinder Morgan, Inc. (NYSE: KMI) – a company that operates within the energy sector through natural gas pipelines.
[finviz ticker=KMI]Similar to Boston Properties, Kinder Morgan was hit hard during the initial Covid lockdown since its stock is driven by energy demand.
Now, KMI has bounced off its November 2020 and is building momentum. This should be viewed as an opportunity to invest.
Kinder Morgan is positioned to continue to produce solid gains and income for investors. The company covered its dividends during the first three quarters of 2020 on top of increasing its dividend payment 5%.
As the economy gets back up and running, so will Kinder Morgan.
If you purchase the stock today, you can lock in a solid 7% yield.
No. 3: Landmark Infrastructure Partners LP
Dividend Yield: 8.9%
Owning, operating, and leasing over 2,000 cell towers to telecommunications companies like Verizon, AT&T, and T-Mobile, Landmark Infrastructure Partners LP (NASDAQ: LMRK) has already established itself as one of leaders in the 5G revolution.
[finviz ticker=LMRK]The company’s proprietary “smart pole” for 5G called Landmark Vertex can turn any 4G tower it already owns into a 5G hub for much less than the cost of building a brand new one.
Founded in 2014, this high-yield REIT is currently paying investors a massive 8.9% dividend yield.
That’s 5.5X more than the 1.6% yield you would get owning the S&P 500 index right now. And nearly 10X the 10-year U.S. Treasury.
With the roll out of its “smart pole” technology, the stock could easily increase in 2021 as it converts more 4G cell towers to 5G cell towers.
The money Landmark saves by not having to build new towers from the ground-up (like most of its competitors) will surely boost the company’s bottom line earnings.
No. 2: Solar Capital Ltd. (NASDAQ: SLRC)
Dividend Yield: 9.3%
Solar Capital Ltd. (NYSE: SLRC) is an investment company that primarily finances senior secured loans of private mid-cap companies to generate current income.
Since senior secured loans are the first to be paid out in case of bankruptcy, it’s safer than all other forms of debt…
[finviz ticker=SLRC]Solar Cap’s investment objective is to generate both current income and capital appreciation through debt and equity investments.
The company generates revenue primarily in the form of interest; dividend income and others. And that income is then distributed straight into shareholders’ pockets quarterly.
The business hasn’t missed a dividend payment since it went public back in 2010… And I don’t foresee it missing one in the foreseeable future, no matter which way the market turns next.
Historically, the stock has paid an average dividend of about 8%. But since the recent market pullback in March, you can now lock in the stock for a 9.3% annual yield.
No. 1: Cherry Hill Mortgage Investment Corp. (NYSE: CHMI)
Dividend Yield: 14%
Cherry Hill Mortgage Investment Corp. (NYSE: CHMI) manages real estate in the United States.
The company invests in residential mortgage assets with the objective of generating high current yields and risk-adjusted total returns for its stockholders over the long-term…
[finviz ticker=CHMI]And since it operates as a REIT, it’s required to pay a minimum of 90% of all taxable income in the form of dividends to shareholders each year.
Cherry Hill generates most of its revenue from residential mortgage-backed securities (RMBS), in the form of Interest income earned for servicing mortgage loans.
Since going public in 2013, CHMI has never missed a dividend payment. And right now, you can lock in shares for an insane 14% annual yield.
After already rising 246%, from its April low $2.76, this stock has a ton of positive momentum that I expect to continue throughout 2021.
