(via ZEXPR) In this article, we will be covering 2 top dividend stocks that pay up to 8.5% in annual dividends. Investors have spent a lot of time analyzing stocks and these are some of the companies they have recommended in checking out. This article will be analyzed by going over key numbers and current news on why these can be good stocks to hold on to.
The first company on the list is TC Energy stock ticker TRP.
TC Energy (TRP)
TC energy is a part of the transportation and warehousing sector and they are involved in the pipeline transportation for the natural gas industry. This company operates a 60,000-mile network of natural gas pipelines. They transport natural gas from supply basins to local distribution companies, power generation plants, and industrial facilities.
Right now TC energy is trading at $44.41 with a 52 week low of $32.37 and a 52 week high of $57.90. It has been observed by InfinityCapitalG broker from their one-year price chart, we can see a pretty steep drop at the beginning of the pandemic and since then it’s hovered between $40 and $50. They do have a market cap of $41.519 billion, a PE ratio of 15.97, earnings per share of $2.78, and a pretty great dividend of 5.89%. Their current ratio is 0.51; this means they have about half the current assets as they have current liabilities.
It’s always interesting to see what the analysts have to say so on a scale of 1 to 5, 1 being a strong buy and 5 being a sell, analysts rate TC energy as a 1.7, meaning it is a buy.
The average analyst price target is $54.51 which is about 20% higher than the current price of $44.41.
One reason why analysts think why TC energy is such an attractive stock is that pipelines do not produce oil instead the more gas they use the more money they can make. So, since it’s not as correlated with energy commodity prices, it’s a lower risk for the energy sector.
They have increased both profits and cash flows throughout history despite regular shocks to the system. For example, the demand for oil during the pandemic was down a lot. However, TC was able to maintain profits, they’re equal to 2019, and grew their cash flows for the first 3 quarters in 2020.
Their net income increased by $165 million to $904 million and 95% of the earnings come from regulated assets or assets that are backed by long-term contracts. This should equate to a more reliable dividend and share price.
TC hasn’t proven a capital allocation model where 60% of its revenues are reinvested back into its business, targeting low-risk assets that increased productivity. The dividends have increased for the past 20 years and its $30 billion of projects sitting on its books makes it an attractive stock to look into. They have also issued guidance saying that their dividends are expected to grow up to 10% in 2021.
Overall InfinityCapitalG brokers think this is a relatively safe dividend stock that investors are a big fan of.
Altria Group stock ticker (MO):
This is a company that sells manufacturers of cigarettes, smokeless products, and wine in the United States. Right now, Altria is trading at $41.20 with a 52-week low of $30.95 and a 52 week high of $51.47. There was a typical drop-in their stock price with the pandemic and since then it’s been hovering between $35 in around $45.00.
Altria’s market cap is $76.567 billion, and they have a PE ratio of 107.29, which is very high. Their earnings per share right now are $0.38 and they have a very high dividend yield of 8.37%.
The stock has a very generous dividend of 8.53% but of course with high dividends comes a bit more risk. Analysts have dived deep into the factors that can make Altria risky but to be honest there are not many risk factors. It’s undervalued for many reasons and our InfinityCapitalG broker thinks it is one of the safest stocks that is paying such a high dividend.
Altria also has a 51-year Dividend growth streak as well as great long-term dependability. From 2012 to 2019, its operating cash flow went from $4 billion to almost $8 billion and this result in dividends doubling to $3.25. In 2020 they raised their dividend once again. This shows that even in a pandemic people are still buying tobacco although it’s not like a glamorous industry to invest in, there’s no denying that it is quite safe.
Tobacco companies are not allowed to advertise their products so, big players like Altria have a big advantage over newcomers and there has been the observation that cigarette prices have gone up consistently. Fewer people smoke now but Altria is still able to grow earnings just because they can raise prices without an effect on demand.
So, Yeah! Definitely checkout Altira, if you want a high-paying dividend stock.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.