When the stock market feels too hot, income-focused investors can sit back and and collect the easy money through reliable dividend stocks.
Equities have been on a tear in the last year and a half, with the fastest doubling of the S&P 500 in history as the blue-chip index went from a March 2020 low in the 2,200 range to a reading of more than 4,400 in 354 trading days. However, this big rally could hit a wall as investors start to worry about valuations running up too fast, as well as the return of coronavirus hot spots.
If you’re looking to go “risk off” in September, here are five high-flying dividend stocks to offer steady income regardless of any short-term volatility:
— Amcor PLC (ticker: AMCR)
— Pfizer Inc. (PFE)
— Star Bulk Carriers Corp. (SBLK)
— Ternium SA (TX)
— Uniti Group Inc. (UNIT)
Amcor PLC (AMCR)
Forward dividend yield: 3.7%
The pandemic-driven demand for e-commerce and home delivery has persisted in 2021 and is likely here to stay. As a result, Amcor has been riding a strong uptrend thanks to its packaging products for a wide range of goods including food and beverage, medical items, and personal care. Shares roared to a 52-week high Aug. 25, but this sleepy company isn’t the kind of stock you buy in the hopes of outperformance vs. the S&P 500. What is most appealing to most investors should be its long-term dividend potential and generous yield based on strong customer relationships and a business that will hang tough regardless of broader economic ups and downs.
Pfizer Inc. (PFE)
Dividend yield: 3.3%
Big Pharma mainstay Pfizer has had a big month, rising 11% as of Aug. 25. Part of that run is due to full regulatory approval of its COVID-19 vaccine, opening the door for mandates from various companies and governmental agencies including the Department of Defense. Shares are up more than 30% in the last 12 months, eclipsing even the December 2020 highs during the previous peak of vaccine demand, but income investors will be pleased to see that on top of this share performance, the company continues to offer an above-average dividend yield.
Star Bulk Carriers Corp. (SBLK)
Dividend yield: 4.5%
A little-known marine shipping stock, Star Bulk is a $2 billion carrier that operates a fleet of about 130 vessels out of Greece with the tagline “Give me a ship and I shall move the earth.” Shipping is a cyclical business, but as the global economy gets back on firmer footing, there is strong demand. Coupled with the limited capacity on ships now and previous supply chain disruptions that have created pent-up demand, bulk shipping rates recently hit an 11-year high. That’s naturally great for SBLK stock, which has jumped more than 200% in the last year, including a 20% run in August alone. However, the structure of this company also means shareholders get a big portion of profits paid back via dividends.
Ternium SA (TX)
Dividend yield: 3.8%
The steelmaker Ternium is headquartered in tax-friendly Luxembourg but operates facilities across the Americas. Its products include important raw materials for many industries, including steel slabs, bars, tubes, beams and rolled flat products. Additionally, its mining segment sells iron ore to other manufacturers and end users. It’s not a glamorous business, but it’s a very good one as inflationary pressures have driven up prices for things like iron and steel in 2021. That means bigger profits for Ternium and generous dividends for shareholders.
Uniti Group Inc. (UNIT)
Dividend yield: 4.7%
An under-the-radar real estate investment trust, or REIT, Uniti is as much a communications firm as a property owner. Specifically, it is a leading provider of wireless infrastructure, including roughly 7 million miles of fiber optic cable across the U.S. Amid continued remote working arrangements and fears of a return to virtual schooling in some regions, Uniti is a vital service provider in many communities. And as REITs must deliver 90% of taxable income back to shareholders, the regular cash flow provided by Uniti’s operations support regular and generous dividends on top of strong performance lately that includes a 14% rise in share prices over the last month.
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Update 08/26/21: This story was published at an earlier date and has been updated with new information.