The market’s bull moves since March have been amazing, if not historic. Yet the high-performers have been mostly in the tech sector. Value and dividend stocks have mostly lagged.
But I think this presents an opportunity. The fact is that there are many interesting high-yielding companies that have good long-term prospects.
Besides, as the markets get more volatile — which is certainly the case now — there will likely be a rotation to more stable stocks. Of course, timing this is no easy feat. But having some level exposure to dividend stocks is a smart way to diversify a portfolio.
So which dividend stocks look good right now? Which are the ones that have been known to keep increasing their payouts — year after year? Well, let’s take a look at seven…
Dividend Stocks: John Wiley & Sons (JW-A, JW-B)
John Wiley & Sons is one of the oldest publicly traded companies in the U.S. The origins go back to 1807 when Charles Wiley launched a print shop, which would eventually turn into a publisher.
Some of its famed authors included Washington Irving, Herman Melville and Edgar Allan Poe. Before long, though, the business evolved once again, turning toward non-fiction books, textbooks and research publications.
It’s a fairly steady business and generates strong cash flows. In the latest quarter, revenue grew by 4% to $491 million and the EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) was $120 million. The balance sheet is also strong, with $740 million in available liquidity.
Over the years, the company has invested heavily in its digital capabilities. This has helped it manage through the Covid-19 pandemic. But these investments are likely to provide the groundwork for future growth.
JW-A stock also has a dividend of 3%, which the company has increased annually for 22 consecutive years.
Coca-Cola has an enviable track record with its dividend — the yield is currently 3.3% — which the company has increased every year since 1963! And this trend will likely continue for many more years. Then again, the company has more than 500 brands and 20 of them generate over $1 billion each.
It’s true that the Covid-19 pandemic has taken a toll on the business. During the most recent quarter, revenue fell by 9%. KO stock has not seen much of a rebound from the March lows, showing only a 6.3% gain.
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