S&P 500   5,051.41
DOW   37,798.97
QQQ   431.10
Stock market today: Most of Wall Street slips as expectations rise for rates to stay high
Kinder Morgan Stock Bid Up In An Oil Breakout
ASML’s Earnings Could Bring The Stock to New Highs
3 Computer Vision Stocks for Long-Term Gains From AI
Undervalued UnitedHealth Group Won’t Be For Long
Closing prices for crude oil, gold and other commodities
DocuSign and The Case for 66% Upside 
S&P 500   5,051.41
DOW   37,798.97
QQQ   431.10
Stock market today: Most of Wall Street slips as expectations rise for rates to stay high
Kinder Morgan Stock Bid Up In An Oil Breakout
ASML’s Earnings Could Bring The Stock to New Highs
3 Computer Vision Stocks for Long-Term Gains From AI
Undervalued UnitedHealth Group Won’t Be For Long
Closing prices for crude oil, gold and other commodities
DocuSign and The Case for 66% Upside 
S&P 500   5,051.41
DOW   37,798.97
QQQ   431.10
Stock market today: Most of Wall Street slips as expectations rise for rates to stay high
Kinder Morgan Stock Bid Up In An Oil Breakout
ASML’s Earnings Could Bring The Stock to New Highs
3 Computer Vision Stocks for Long-Term Gains From AI
Undervalued UnitedHealth Group Won’t Be For Long
Closing prices for crude oil, gold and other commodities
DocuSign and The Case for 66% Upside 
S&P 500   5,051.41
DOW   37,798.97
QQQ   431.10
Stock market today: Most of Wall Street slips as expectations rise for rates to stay high
Kinder Morgan Stock Bid Up In An Oil Breakout
ASML’s Earnings Could Bring The Stock to New Highs
3 Computer Vision Stocks for Long-Term Gains From AI
Undervalued UnitedHealth Group Won’t Be For Long
Closing prices for crude oil, gold and other commodities
DocuSign and The Case for 66% Upside 

Three High-Yield Dividend Stocks For 2021 And Beyond

→ Can't believe it's happening again (From Manward Press) (Ad)
Dividend-Growth Is On The Table In 2021

 While the average market participant may sit back wondering whether dividends or growth is the better position for 2021 there is a third choice that investors should consider. Dividend-Growth stocks. Dividend-Growth stocks offer the best of both worlds by combining a dividend payment with an outlook for growth. The growth could come in the form of business expansion or acquisition, or it could come in the form of increasing distribution amounts. In either case, the opportunity for long-term gains is very high.

With the economic rebound well underway and another round of stimulus checks on the way, there is no reason to think that dividends won’t be increased in 2021. The trick is finding just the right dividend-growth stocks to fit your portfolio. The stocks I want to highlight today represent not only opportunities for dividend-growth but for high yields and diversification as well.

 Juniper Networks, Inc Is An IT Infrastructure Play With 3.5% Yield

Juniper Networks (NYSE:JNPR) has a lot of things going for it that begin with its position as an IT infrastructure play and end with its safely growing 3.5% yield. Looking at Juniper from the business perspective, its position as a network infrastructure manufacturer and service provider makes it a fundamental part of the ongoing shift to digital. The shift that was accelerated by the pandemic and driving double-digit gains across the industry.

Looking at Juniper from the investment perspective, the stock offers a good value at 15X this year’s earnings while most other tech-related dividend stocks are well above the broad market average. Juniper Networks has only been paying a dividend for 7 years but the outlook for future payments is good. The company embarked on a cycle of distribution increases three years ago and is on track for a fourth during the calendar 1st quarter of 2021. The payout ratio is a very manageable 50% so there is ample room for another 5% increase and the balance sheet is a fortress.

Three High-Yield Dividend Stocks For 2021 And Beyond

Duke Energy Powers A 4.25% Yield


Duke Energy (NYSE:DUK) isn’t exactly what I would call a growth stock. The company has yet to see it business fully recover from the pandemic and when it does the best we can expect is low-single-digit YOY gains. Duke is also not what I would call a great dividend-grower as well. The company has been increasing the payment for 9 years and is expected to continue doing so but at a low single-digit CAGR. What’s great about Duke Energy as a dividend-growth stock is that its high 4.25% yield is safe and there is an outlook for growth. 4.25% is nearly 3X the broad market average and very attractive from the income perspective.

The outlook for share prices is tepid but there is a ray of light at the end of the tunnel. While price action will be hampered over the winter with COVID-related conditions persisting in the economy the reopening is just around the corner. The approved vaccines are slowly making their way through the system are more are on track for approval. When the economic reopening hits full stride we can expect demand from the industrial/commercial sector to surge.

Three High-Yield Dividend Stocks For 2021 And Beyond

Abbvie: Undervalued, High-Yield, Double-Digit Growth

I think the words undervalued, high-yield, and double-digit growth just about say it all for Abbvie (NYSE:ABBV). This company is the biopharma spin-off from Abbott Laboratories and it is on fire. The company received expanded approval for two of its pipeline drugs that have revenue up 10% in Q1 2020, 25% in Q2 2020, and 51% YOY in Q3 2020. The two main drivers of the growth are Rinvoz and Skyrizi which each grew more than 100% and together amount to about 5% of the net. Growth in these two products should continue at a high double-digit rate over the next several quarters. The two biggest sellers, Humira and Imbruvica grew 4.1% and 9.0% and continue to underpin the company’s revenue.

Regarding the value and the dividend. The stock is trading at only 10X this year’s earnings and 8.5X next year’s offering deep value for the growth and yield. The yield is just over 5.0% and comes with a healthy 50% payout ratio, a robust earnings outlook, a 7-year history of increases (not counting the 20 year’s Abbot increased its distribution before the spin-off), a 20% distribution CAGR, and a healthy balance sheet. Shares of the stock made a strong rally following the Q3 earnings report and look like they are setting up for another move higher.

Three High-Yield Dividend Stocks For 2021 And Beyond
→ Can't believe it's happening again (From Manward Press) (Ad)

Should you invest $1,000 in AbbVie right now?

Before you consider AbbVie, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and AbbVie wasn't on the list.

While AbbVie currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

7 Stocks to Own Before the 2024 Election Cover

Looking to avoid the hassle of mudslinging, volatility, and uncertainty? You'd need to be out of the market, which isn’t viable. So where should investors put their money? Find out with this report.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
AbbVie (ABBV)
4.8949 of 5 stars
$162.54+0.5%3.81%59.54Moderate Buy$177.43
Juniper Networks (JNPR)
3.8378 of 5 stars
$36.42-0.3%2.42%38.34Hold$34.27
Duke Energy (DUK)
4.5791 of 5 stars
$92.86-1.3%4.42%26.16Moderate Buy$101.25
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


Featured Articles and Offers

Double Your Dividend Returns: Marc Lichtenfeld's Top Picks & Strategies

Double Your Dividend Returns: Marc Lichtenfeld's Top Picks & Strategies

Whether you're aiming for financial freedom or looking to understand the critical role of dividends in wealth building, this video is your go-to resource.

Search Headlines: