A List of Dividend Stocks for this Current Market Panic
100 years ago, we (Americans) called sudden drops in the stock market panics. Now they’re recessions or bear markets. If you can be greedy when others are fearful and keep a level head when doing research, you’ll be fine.
On Finviz there is an incredible stock screener that investors should use to find and buy better stocks. With the market down 30% since its high in December, now is the time to start finding stocks for both the long and short-term. So far, I’ve lived through the S&L Crisis in 1987, the Dotcom Bust in 2000, the Housing Bust, and now Covid-19 — every time it was a different catalyst. That means, there will be different companies that offer the most upside.
With that in mind, here is a shortened list from a recent screen that produced over 370 stocks which yield more than 10% in annual dividends. There is a caveat. The earnings in these companies will likely be lower in the short term, maybe irreversibly damaged, but for many 10% will be the new baseline long-term and that will produce better returns than any major asset class, for 99% of investors. So, it’s worth exploring.
Note: This post will not provide any further insights onto why, figure that out for yourself. By the time you read this, yields may have changed, but I have tried to only offer up the companies that will likely not cut their dividend entirely, even if some cut backs take place.
- The world’s largest ad agency (WPP) is offering a 12% yield
2. The Gap (GPS) is also offering a 12% yield
3. Asset managers Invesco (IVZ), Apollo Global (APO), and AllianceBernstein (AB) are yielding 14%, 11%, and 17% respectively
4. Ford Motor (F) is yielding 12%, and the race for electric vehicle supremacy is still far from over
5. One of the largest owners, suppliers, and operators of gasoline stations and convenience stores, Global Partners (GLP) is offering a 20% yield right now, with the stock down 50% this month
6. Retailers Kohl’s (KSS) is yielding 14%, with Big Lots (BIG) yielding 11%
7. Credit service company X Financial (XYF) is yielding over 11%
8. Iron Mountain (IRM) offers a10% yield
9. Foreign banks Santander, Barclays, and BBVA all have super sexy yields right now, and banking will still be the underlying ruler of the world, even in its current flawed form
10. Brazil’s largest electric utility firm Companhia Energetica de Minas Gerais CIG is providing 10% yield right now
11. Life insurers Aegon, ING, and Prudential carry heavy yields of 18%, 15%, and 10% respectively. Let’s remember that current numbers for death to cases of Covid-19 is around 3%. I don’t know if that will put these firms under any long-term risk of bankruptcy.
12. Major oil and gas company’s XOM, Eni, and BP are getting hit twice with the price of oil per barrel below $30, but each yield over 10%. These could get much cheaper if oil drops into the teens.
13. For the non-major oil and gas companies that include drillers, equipment and service providers, refining, pipelines, etc. the list gets pretty long. A few of the better ones are CNOOC, Holly Energy, Williams, Marathon, Sunoco, Phillips 66, and Valero which all yield over 10%.
14. B&G Foods, food manufacturer of grocery products like Skinny Girl and Weber is yielding 11%.
15. There are at least two pages of REITs but I stayed away from them, but there are two real estate developers Xinyuan and Brookfield that offer 16% and 12% respectively.
16. Cruise Liners Carnival and Royal Caribbean are struggling hard so the 15% and 11% dividend they have now will likely get cut.
17. Big restaurant chains Ruth’s and Brinker also yield over 10%, mainly because both of these organization’s stock has drop to levels I haven’t seen since before 2012.
Could it get worse? Of course. Every stock listed here could be down another 20–50% from today’s trading price by the end of this viral scare. My main question is will this be a one off black swan even, or will it be the norm?
