Almost all of the articles and posts discussing dividend stocks list the same plays — all of which seem to be ~3-5% yielding. Since I'm still kinda new to investing, I want your thoughts on three of my dividend positions that I think are about as safe with a much higher return.
- Rio Tinto (RIO) – Yield: 12.25% (est) – Rio has huge dividend growth over the last few years, but has a long record of paying out substantial yields. There's a huge gap in the amounts of special dividend payments, so I took a conservative estimate for that variable to calculate yield. It could be higher, it could be lower.
- Via Renewables (VIA) – Yield: 9% – Via lowered their dividend in 2019, which I understand to be a red flag. With that said, the natural gas market is strong right now and I don't expect them to have a cash-flow issue.
- Volkswagen (VWAPY) – Yield: 6.3% – The possible Porsche IPO is probably driving the share price down, but it should rebound when they shift to EV (the comp P/Es are way higher than their current P/E). I hold this as a hybrid growth/dividend stock. These are preferred shares, which somehow are cheaper than common shares (??)
Thanks in advance!
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