20 Dividend Stocks to Buy in Low Rate Environment

Author: Craig Adeyanju

Estimated read time: 5 minutes

Publication date: 18th Sep 2019 12:20 GMT+1

Word on the street has it that the U.S. Federal Reserve will deliver another rate cut when the Federal Open Market Committee (FOMC) meets on September 17 and 18. The Fed had announced a rate cut on July 31, the first rate cut in a decade. While another rate cut within a period less than two months gives credence to analyst views of a slowing economy, it should be a boost for equities, at least in theory. Lower interest rates typically translate to lower bond yields and this increases the demand for higher-yielding dividend stocks. (See also: Consider These Types of Stocks for Fed Rate Cut)

Income investors looking in the way of dividend stocks in current low rates environment may even be able to capital gains by considering high yield stocks with strong analyst ratings. We used the Finscreener stock screener to find stocks with a dividend yield exceeding 3% and a "strong-buy" analyst rating. Here are a few dividend stocks rated a "strong-buy" by multiple analysts.

Entergy Corporation (NYSE: ETR): The integrated utility company, with over 25 gigawatts of power generation capacity, is currently given a consensus rating of "strong-buy" by eight analysts. Entergy pays a per-share dividend of 3.64, currently yielding 3.23%.

CenterPoint Energy Inc. (NYSE: CNP): Also a utility company with operations in electricity transmission and natural gas distribution, CenterPoint holds a consensus strong buy rating from 12 analysts. CNP stock currently yields 3.85% on an annualized dividend of $1.15 a share.

Novartis AG (NYSE: NVS): Pharmaceutical company Novartis is considered a strong buy by eight analysts. NVS stock has a yield of 3.17% on an annualized dividend of $2.83.

Valero Energy Corporation (NYSE: VLO): With operations spread across the U.S., U.K. and Canada, Valero Energy's 14 refineries have a combined production capacity of 3.1 million barrels a day. VLO stock sports a yield of 4.30% and a dividend of $3.6.

Citizens Financial Group Inc. (NYSE: CFG): With operations mainly in New England, Mid-Atlantic and the Midwest regions of the U.S. retail bank Citizen Financial pays an annual dividend of $1.44 a share, yielding 3.98%.

Chevron Corporation (NYSE: CVX): The integrated oil company is rated strongly by 13 analysts. CVX stock pays an annual dividend of $4.76 apiece, sporting a yield of 3.92%.

Regency Centers Corporation (NASDAQ: REG): This retail REIT primarily focused on shopping centers currently pays $2.34 per share in dividend annually, with it yield coming in at 3.39%.

Enterprise Products Partners L.P. (NYSE: EPD): This provider of midstream energy services has 15 analysts rating it a solid buy. EPD stock pays an annualized dividend of $1.76, with its yield north of 6%.

FirstEnergy Corp. (NYSE: FE): FirstEnergy generates, transmits and distributes electricity through its subsidiary in the United States and it currently has eight analysts holding a strong buy rating on it. FE investors earn $1.52 in annualized dividend, resulting in a yield of over 3.2%.

Federal Realty Investment Trust (NYSE: FRT): This REIT, which owns, operates and redevelops high-quality retail properties in about eight of the largest metropolitan markets, currently pays its investors an annualized dividend of $4.20, which currently sports a yield of 3.11%.

Halliburton Company (NYSE: HAL) is the world's second-largest oilfield servicing company. Nearly 20 analysts currently say to buy HAL stock. Investors in the company enjoy a 3.65% yield on their $0.72 annualized dividend.

Plains All American Pipeline L.P. (NYSE: PAA), engaged in the transportation, storage and terminalling of crude oil, natural gas and natural gas liquids (NGL), currently pays its investors $1.44 a share in annualized dividends. PAA stock currently yields a whopping 6.72% and 14 analysts believe it's a strong buy.

BlackRock Inc. (NYSE: BLK): With assets under management (AUM) in excess of $6.5 trillion, Blackrock is the world's largest asset manager. BLK stock pays its investors an annualized dividend of $13.20 a share, which presently yields 3.04%. What's more, 12 analysts have a strong buy rating on BLK.

Gilead Sciences Inc. (NASDAQ: GILD): This biopharmaceutical company, which focuses on the development of therapies for life-threatening diseases, holds a strong buy rating from 20 analysts. Its annualized dividend of $2.52 a share yields 3.80% as of the time of writing.

Nutrien Ltd. (NYSE: NTR), which produces and markets crop nutrients worldwide currently sports a strong buy rating from 12 analysts. In addition, NTR investors enjoy a yield of 3.52% on an annualized dividend of $1.80 a share.

Energy Transfer LP (NYSE: ET), a provider of energy-related services in the U.S. and China, currently pays it's investors an annualized dividend of $1.22 a share, resulting in a yield of 8.76%. ET stock has a strong buy rating from 10 analysts.

VICI Properties Inc. (NYSE: VICI) is an experiential REIT with one of the largest portfolios of leading hospitality, entertainment and gaming destinations. Investors in VICI stock earn an annualized dividend of $1.15 per share, currently yielding 5.24%.

Broadcom Inc. (NASDAQ: AVGO), a semiconductor designer and manufacturer, pays an annualized dividend of $10.60, which currently yields 3.53%. AVGO stock is rated a strong buy by 23 analysts.

The Blackstone Group Inc. (NYSE: BX), an alternative asset management firm, with speciality in real estate and private equity, just to name a few, currently has 11 analysts rating it a strong buy. BX investors earn an annualized dividend of $1.92, which yields 3.59%.

Weyerhaeuser Company (NYSE: WY), one of the largest private owners of timberlands in the world, which has been in operation since 1900, pays an annualized dividend of $1.36, sporting a yield of $4.88%.

Investors should remember that stocks are considered a riskier asset class than bonds because there's a risk of capital loss. So while hunting for the highest of yields, your due diligence should also look into the strength of the company.


Disclaimer: The writer is an experienced financial consultant who writes for Finscreener.com. The observations he makes are his own and are not intended as investment or trading advice.