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3 Dividend Champions Still Yielding 4.5%

3 Dividend Champions Still Yielding 4.5%

The market seems to have taken a breather after an upward trend for the past few months. I would argue that much of the market is overvalued, but there are still pockets of value for dividend growth stocks and high yield stocks. Last year at this time there were many stocks to pick from that combined both during the short bear market. That being said, the number of stocks yielding over 4.5% has dropped dramatically in 2021. However, there are still some dividend growth stocks to pick from that are yielding over 4.5%. In this article, I discuss three Dividend Champions with 25+ years of dividend growth and yields over 4.5% as of this writing. These stocks are Weyco Group (WEYS), Exxon Mobil (XOM), and International Business Machines (IBM). I view all three stocks as buys.

3 Dividend Champions Still Yielding 4.5%

Weyco Group

Weyco Group is one of the smaller Dividend Champions with a market capitalization of only about $200 million. This keeps the stock off the radar of many dividend growth and high yield investors. However, that is a mistake in my opinion. The company went through arguably one of the most difficult periods in its history during 2020…

Exxon Mobil

Exxon Mobil is a much larger Dividend Champion with a market capitalization of over $264 billion. The stock price was hammered during the COVID-19 pandemic as demand dried up and oil and gas prices fell. Workers were not commuting, and people were not flying cutting into sales of gas and jet fuel. The yield spiked to over 10% as the stock price plummeted and the company took on debt. At the time, Exxon Mobil’s low dividend safety from the perspective of earnings, cash flow, and total debt placed the dividend at risk.

International Business Machines

The third Dividend Champion that I view as a buy is IBM, which is controversial. However, things are changing for IBM as the company transforms itself from one focused on services to one focused on software. The acquisition of RedHat in 2019 combined with the impending spinoff of Kyndryl will mean that IBM will be a player in hybrid cloud…

Please read the complete article at my profile on Seeking Alpha for 3 Dividend Champions Still Yielding 4.5%.

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Prakash Kolli is the founder of the Dividend Power site. He is a self-taught investor, analyst, and writer on dividend growth stocks and financial independence. His writings can be found on Seeking Alpha, InvestorPlace, Business Insider, Nasdaq, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, and leading financial sites. In addition, he is part of the Portfolio Insight and Sure Dividend teams. He was recently in the top 1.0% and 100 (73 out of over 13,450) financial bloggers, as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.

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