Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

3 Dividend Stocks To Buy And Hold Amid Pandemic Uncertainty

By (Haris Anwar/ MarketsNov 30, 2021 02:02
3 Dividend Stocks To Buy And Hold Amid Pandemic Uncertainty
By (Haris Anwar/   |  Nov 30, 2021 02:02
Saved. See Saved Items.
This article has already been saved in your Saved Items

The emergence of the new Omicron COVID variant has shown investors that pandemic-related volatility hasn’t yet run its course. Therefore, when considering what's worth betting on, it makes sense to look toward larger companies that have safer paths to growth.

If you are a buy-and-hold investor, large-cap dividend stocks are among the safest bets to ride through this volatility. These companies tend to have strong business models that allow them to regularly generate cash flows for their shareholders. Strong balance sheets, essential products and services, and large global footprints also help provide investors with considerable annualized returns.

In addition, soaring inflation and rising yields make high-dividend payers more compelling for long-term investors who want to preserve the value of their fixed income. Below, we've identified three such stocks:

1. Medtronic

Health-care stocks are considered relatively safe, regarded as solid income producers.

Medtronic (NYSE:MDT) is a lesser known healthcare stock that we like due to the company’s strong market position and its hefty payouts. The world’s biggest medical device maker controls 50% of the global pacemaker market. It’s also a leader in products that assist with spinal surgeries and diabetes care.

MDT Weekly TTM
MDT Weekly TTM

No matter which way the economy goes, stocks like Medtronic will continue to churn out cash. The Dublin, Ireland-based company has a long-term strategy to pay out 50% of its free cash flow to shareholders as dividends. With a 2.27% annual yield, the company pays a quarterly dividend of $0.63 a share. That payout, on average, has increased more than 10% per year during the past five years. 

Medtronic last week reported sales that were short of Wall Street’s expectations and slashed its outlook for revenue growth due to the COVID-19 resurgence and healthcare staffing challenges.  

But this weakness is temporary and, in our view, a good buying opportunity for dividend investors. The company is one of those strong, inflation-fighting stocks with a clear lead in the medical device business and the capability to rebound once the pandemic is contained. 

2. Texas Instruments 

Tech giant Texas Instruments (NASDAQ:TXN), which produces electronic products, including chips that are used in many diversified industries, is another solid name to add to your income portfolio.

TI gets the biggest chunk of its sales from manufacturers of industrial equipment. It also produces semiconductors that go into everything from vehicles to home electronics and space hardware.

Texas Instruments Weekly Chart.
Texas Instruments Weekly Chart.

But the biggest attraction for long-term investors is the company’s dividend program, which is growing each year. With an annual dividend yield of 2.4%, TXN currently pays $1.15 a share quarterly, which has grown more than 20% per year during the past five years.

With its payout ratio of just over 50%, TI is in a comfortable position to continue to hike its dividend going forward. In addition, the company’s long-term growth prospects are bright with the amount of electronics being added to cars and machinery. Unlike many chip-makers that mostly outsource the manufacturing of their products, Dallas-based Texas Instruments has factories that accommodate about 80% of its own needs.

3. JPMorgan Chase

Banks are purely a cyclical trade, tied very closely to the direction of the economy. Right now, those factors have become quite favorable for banking stocks, given the prospects for higher interest rates and robust economic growth. 

Among banking shares, we like JPMorgan Chase (NYSE:JPM), the largest U.S.-based lender for income investors, due to the strength of its balance sheet and the quality of its operations.

JP Morgan Chase Weekly Chart.
JP Morgan Chase Weekly Chart.

In its most recent earnings report, JPM delivered strong results as the economy continues to show growth—despite the dampening effect of  COVID variants and supply-chain disruptions. 

During the third-quarter, the New York-based lender posted a 52% jump in investment-banking fees, boosting its bottom-line profitability. Combined with the government’s massive infrastructure spending plans and a gradual tapering of monetary stimulus, banks could see demand for credit pick up substantially next year as companies and individuals use up the liquidity accumulated during the pandemic. 

With an annual dividend yield of 2.47%, JPM pays $1 a share quarterly dividend, which has grown about 18% per year during the past five-year period.

3 Dividend Stocks To Buy And Hold Amid Pandemic Uncertainty

Related Articles

3 Dividend Stocks To Buy And Hold Amid Pandemic Uncertainty

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email