Stocks to Buy With Dividends Yielding More Than 3% May 27, 2021...

Stocks to Buy With Dividends Yielding More Than 3%




May 27, 2021 at 10:12AM
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The increasing volatility we're seeing in stocks signals to some we may be approaching a market peak. Even with the economy chugging back to life toward a summer of near-normalcy in the U.S., there are indications investors may want to be a bit more defensive.
Buying dividend-paying stocks is a smart strategy regardless of the environment -- but in a potentially down market, income-generating stocks are a particularly good play.

Amcor
Packaging specialist Amcor (NYSE:AMCR) is not a stock that immediately jumps to mind when thinking of downside protection in a volatile market.
The maker of rigid and flexible packaging for food, beverages, pharmaceuticals, and personal care products is in an industry that may not be sexy, but it's vital: Especially in a reopened economy, its products cut across huge swaths of the market and should be in high demand.

Its fiscal third-quarter earnings reported earlier this month indicate that seems to be the case, with year-to-date revenue rising 1% to $9.4 billion, but adjusted earnings per share jumping 16% from the year ago period. Amcor also raised its guidance for full-year per-share earnings to rise 14% to 15% from its previous outlook of 10% to 14% gains.
Amcor isn't a stock for investors looking for a stratospheric expansion of value, but rather one of steady, stable increases. Its stock did plunge during the COVID-19 outbreak, but it regained all the lost ground within weeks -- its business wasn't impacted all that much because the markets it sells into are essential ones themselves.
Amcor is looking to its 2019 acquisition of fellow plastic packaging and products maker Bemis to drive future growth. It gave the U.K.-based Amcor an extensive U.S. manufacturing base while also generating significant cost synergies, some $55 million this year so far. Amcor expects the acquisition to deliver at least $180 million worth by the end of the next fiscal year.
The packaging specialist pays a dividend yielding 4% annually, and has raised the payout every year for 25 consecutive years, making Amcor a Dividend Aristocrat, a bit of extra security for investors looking for stocks to tide them over periods of uncertainty.