The novel coronavirus continues to paralyze markets, fueling safe-haven assets. And the 10-year U.S. Treasury bond pays a paltry 1.61%. If markets do retreat again, we could see that interest rate fall below 1.5%.
You might say there’s nowhere for income investors to turn. But many investors have already found safety in our top dividend stocks today.
Or you could start looking at these companies for security in any economic conditions.
If that sounds good to you, read along. These three companies pay more than 6% in dividends to investors.
This yield represents nearly four times the amount that investors could get from the U.S. government.
Our first pick has a little upside as well…
Dividend Stock to Buy No. 3: Enterprise Products Partners LP
Enterprise Energy Partners LP (NYSE: EPD) is a master limited partnership that has experienced a bit of a downturn over the last few weeks. The company operates in the oil and natural gas space, and we’ve seen a lot of stocks slump due to falling commodity prices. Natural gas prices have declined by 15% since the start of the year and slumped about 30% in the last 12 months.
But this is a company that generates incredible cash flow through its operations. It doesn’t matter what the price of natural gas is. EPD is going to charge fees to producers to pump natural gas across the country. The firm has enough cash on hand to nearly double the payout of its lofty dividend of 6.8%.
Enterprise Products Partners currently trades at roughly $26 per share. At current levels, the 6.8% dividend justifies a buy and hold strategy. Although the coronavirus represents a threat to the global natural gas market, investors can lock in that yield and take a longer-term approach to the stock. We currently see a price target of $36 for EPD stock once concerns about the coronavirus and the global economy abate. With central banks around the globe still pumping cash into the equity markets, investors can benefit from stocks like EPD that can outperform in any economic situation.
This next dividend is just as consistent, but higher…
Dividend Stock to Buy No. 2: Meredith Corp.
Meredith Corp. (NYSE: MDP) is a publisher of 32 significant print and digital publications that include People, Country Life, Shape, and Better Home & Gardens. It also operates websites like mywedding.com, which has experienced explosive growth in traffic. The firm is the world’s second largest brand licensor in the world. That’s helped it earn gobs of cash to return to shareholders. Last year, the firm earned royalties on $25 billion in global sales.
Also, the company owns local broadcast stations that reach roughly 11% of U.S. households and radio stations. These regional segments are expected to have a banner year thanks to the 2020 election. Candidates in the Democratic primary are spending hundreds of millions of dollars on local advertising. The 2020 presidential election could easily see billions of dollars in ad spend by the time that voters elect a winner in November 2020.
Meredith currently pays a dividend of 7.3%. Looking ahead, shares also have about 23% upside. Shares trade at roughly $32.50. We have a one-year price target of $40.
But you can get a higher dividend and 70% upside with our best dividend stock today.
The Best Dividend Stock to Buy
Finally, if you love dividends, you will love REITs. These real estate investment trusts offer a massive tax advantage because they pump 90% of their cash flow back to investors. The REIT we love today is Braemar Hotels & Resorts Inc. (NYSE: BHR).
The company focuses almost exclusively on luxury properties. It owns 13 properties around the United States and in the Virgin Islands. The company isn’t large by any means, with just a $265 million market capitalization. But its share price and dividend make it one of the most attractive stocks available today. Positive economic growth and strong spending among the wealthiest Americans will support the company moving forward and help its stock climb higher.
Shares currently trade at $8.22 and offer a dividend of 7.8%. However, we expect that the stock will return to its 52-week high thanks to stronger spending and the success of its St. Thomas Ritz-Carlton hotel. Wall Street expects that this location will be a significant cash cow for the firm now and in the future. We currently have a price target of $14 for BHR stock. That figure represents a possible upside of 70% from current levels.
— Garrett Baldwin
Source: Money Morning