![]() ![]() Names like ExxonMobile (5.76% forward) have slightly higher payout levels. ![]() Sporting a forward yield of 5.03%, this may not be the highest-yielding one out there. Yet, while you may have missed the initial rebound, those looking for high-yield stocks with the potential to gain further may find opportunity here with this major integrated oil & gas company. CVX stock is no exception, rising around 61% from its pandemic-related lows. Also, with its diversification into cannabis, the company’s moves to diversify away from tobacco may help BTI stock, dirt cheap at a forward price-to-earnings (P/E) ratio of 8.5x, rise due to multiple expansion.Īfter a tough 2020, big oil stocks have made a stunning comeback. This could point to more dividend increases in the coming years. Not only that, this out-of-favor stock could offer up some gains along with an above-average yield.ĭespite the secular decline of tobacco smoking in developed economies, its earnings are still set to grow in 2022. Its current 7.72% forward yield is safe for now. But, it should not be an immediate concern. This may be an issue that affects British American Tobacco and its high-yield down the road. Even then, big tobacco may have plenty of time after that to delay or prevent its implementation. So, with one of its flagship brands potentially being destroyed by new regulations, why would I consider BTI stock to be a “safe” high-yielding dividend stock? Namely, it could be years before the ban gets through the rule-making process. Makers of Newport cigarettes, the company controls two-thirds of the menthol market, which makes up 20% of its annual profits. Namely, due to the proposed ban on menthol cigarettes in the United States. So, which dividend stocks with relatively-safe high-yields should you consider? These nine remain relatively-safe income plays:Īt first glance, UK-based British American Tobacco doesn’t appear to be in a healthy position. ![]() But, there are plenty of solid substitutes to choose from across many sectors. Those who held AT&T for the dividend may have been burned. Instead of cutting, many names with high yields are modestly increasing their payouts for 2021. Some of the hardest hit industries, like energy, have mounted an epic comeback. Now, we’ve reached “recovery mode” with the pandemic. Not even ExxonMobil (NYSE: XOM), which was borrowing money in order to maintain its dividend, enacted a cut. Admittedly, some major names, like BP (NYSE: BP) and Royal Dutch Shell (NYSE: RDS-A, RDS-B ), wound up instituting such cuts.īut, overall, dividend reductions wound up being less than expected. For the past year, the Covid-19 outbreak had some worried that dividend cuts were coming for many high-yielding names. News of AT&T’s (NYSE: T) dividend cut as part of its restructuring may have investors in dividend stocks a bit concerned. ![]()
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