FX.co ★ 2020's top 5 dividend stocks that defy crisis

Home Depot

This year, shares of Home Depot were among the best dividend stocks in the market for DIY goods and services. This was due to massive sales of their products in the US since Americans spent more on their homes and apartments during the quarantine. Not long before the pandemic, Home Depot has been reaping the benefits of its 11 billion investment in outlet upgrades, digitalization of business and expansion of client offers. Analysts estimate that in the year 2021 these initiatives will increase sales of Home Depot shares, thus securing income for investors. The company shows dependable dividends and stable quarterly payments that grew by 380% over the last 10 years. Since the beginning of 2020, Home Depot shares have gained 25%.

Microsoft

In 2020, shares of the tech juggernaut brought joy to its investors by way of stable income and enormous growth potential. This proved to be the most reliable combination during the crisis caused by the COVID-19 pandemic. During lockdowns introduced in a number of countries, the demand for Microsoft products and services grew several-fold. Innovations of the IT giant allowed employees of most companies to start working from home. The number of corporate clients using Microsoft Office software increased several times. As the demand sky-rocketed, capitalization of Microsoft by the end of 2020 grew by more than 38%. And that is on top of the company’s 10% increase in dividends, owing to which the quarterly payments reached $0.56 per share.

Nike

Nike, the leader in the market of sports clothing, was an excellent investment in dividend stocks amidst the COVID-19 havoc. Experts believe that the reason for this lies in the company’s successful online strategy. Growing popularity of the brand and its sound business models barely winced at the plunge the shares took in March 2020. The investors that risked buying Nike shares at multi-year lows ended up in the green. Over the current year, shares of the sports apparel champion grew by more than 37%, reaching record values. In November 2020, Nike expanded quarterly dividends by 12%, while the company’s quarterly payments amounted to $0.275 per share.

Enbridge

Enbridge, US largest pipeline operator, is identified by experts to be among the companies that guarantee high and steady dividend payments. Dividend shares of Enbridge yield high income, while the company itself plays a strategically important role in the region’s chain of energy supplies. Economists point out that Enbridge’s cash flows are diversified and evenly distributed in different regions. These tactics allowed the pipeline operator to cope with economic deceleration better than the others. The COVID-19 pandemic has barely affected Enbridge, experts say. Its quarterly payments amount to $0.6525 per share, which secures the annualized gain of 8%. Enbridge has been restructuring for three years by selling assets and paying debts. This ensured a stable growth in income of the company.

Walmart

Dividend stocks of Walmart, the world’s commercial giant, are considered to be among the best. Sizeable balance and growing sales of the retail mogul steadily increase the income of its investors. Walmart’s constant growth of dividend bought the company a place among the so-called dividend aristocrats. The club includes 53 representatives of the S&P 500. This title is given to the companies that have increased their dividends over 25 years or more. During the COVID-19 pandemic, Walmart shares proved to be among the safest ones. Their annualized gain reaches 1.48%, while quarterly payments amount to $0.54 per share. In the year 2020, income from investment in Walmart totaled 23%.