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4 Safe Dividend Bets Amid Coronavirus-Induced Uncertainty

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The coronavirus outbreak has choked the U.S. economy, triggering wide-scale business shutdowns, travel bans and supply-chain disruptions.

As an immediate consequence, corporates have started witnessing significant declines in the top and bottom lines, forcing these companies to apply stringent cost-cutting measures in the forms of furloughs, layoffs and discretionary expense reductions. Several have gone further, drawing down amounts on revolving lines of bank credit, cutting share repurchases and suspending dividends.

With no vaccine available yet, there remains much uncertainty about the duration and extent to which the crisis can weigh on the economy and markets.

So, How to Shield Your Investment Portfolio?

Since the virus outbreak started affecting businesses from the second half of March, its impact will be more pronounced in the second quarter than the first. That said, hopes of capital appreciation on equity investment are minimal, while promised dividends have also not been safe lately.

At this juncture, it is important to identify and invest in companies that have solid prospects and promisea cushion against swings in the market. Although a bulk of companies across diverse sectors have suspended dividends, a handful are sailing through this tough economic time and maintaining dividend payouts.

Notably, companies, which pay regular and handsome dividends, often have sustainable business models, long track record of profitability, rising cash flows, solid liquidity, strong balance sheets and some value characteristics.

Here’re Some Such Hidden Gems

Sprague Resources LP is involved in purchase, storage, distribution, and sale of refined petroleum products and natural gas in the United States and Canada. The company carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for the company’s 2020 earnings is pegged at $1.81 per share, suggesting a rise of 64.6% year over year. The consensus estimate for the year moved more than 100% upward over the past month. Its annual dividend of $2.7 a share currently yields 18%.

Sprague Resources LP Dividend Yield (TTM)

 

Delek Logistics Partners, LP (DKL - Free Report) is an owner and operator of logistics and marketing assets for crude oil, and intermediate and refined products in the United States. The company currently carries a Zacks Rank #2. The Zacks Consensus Estimate for the company’s current-year earnings suggests an 18.4% year-over-year improvement. The consensus estimate for this year climbed 9.2% in the past month. Its annual dividend of $3.5 a share currently yields 13.4%.

Delek Logistics Partners, L.P. Dividend Yield (TTM)

 

Cheniere Energy Partners, L.P. (CQP - Free Report) owns and operates re-gasification facilities at the Sabine Pass liquefied natural gas (LNG) terminal. Currently, the company carries a Zacks Rank of 2. The Zacks Consensus Estimate for the company’s current-year earnings suggests a 10.7% year-over-year improvement. The consensus mark moved 2.5% north in the past month. Its annual dividend of $2.5 a share yields 6.9% right now.

Cheniere Energy Partners, LP Dividend Yield (TTM)

 

AbbVie Inc. (ABBV - Free Report) is a manufacturer, developer and seller of pharmaceuticals in the United States and internationally. The company sports a Zacks Rank #1, at present. The Zacks Consensus Estimate for the company’s 2020 earnings indicates a year-over-year increase of 19.8%. The consensus mark moved up 8.2% in the past month. Its annual dividend of $5.6 a share yields 5.2% right now.

AbbVie Inc. Dividend Yield (TTM)

 

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>


See More Zacks Research for These Tickers


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Cheniere Energy Partners, L.P. (CQP) - free report >>

AbbVie Inc. (ABBV) - free report >>

Delek Logistics Partners, L.P. (DKL) - free report >>

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