Dividend Stocks

Tired of meme stocks? 2021 has seen a flood of stocks that have made huge gains — and often fallen back to Earth just as quickly — thanks to Reddit and retail investors. The best dividend stocks offer an alternative to meme stocks. They may not hold the promise of rapid gains, but companies that regularly pay dividends tend to be a lot more stable.

The best dividend stocks not only generate income, they also offer the prospect of long-term growth. Not astronomical growth, but steady growth. Less exciting, but less stressful and far less likely to develop into a costly mistake.

Each of the stocks on this list is among the top picks among dividend stocks for September.  

  • Ares Management (NYSE:ARES)
  • Fidelity National Financial (NYSE:FNF)
  • Interpublic Group of Companies (NYSE:IPG)
  • LyondellBasell Industries (NYSE:LYB)
  • Prudential Financial (NYSE:PRU)
  • Snap-on (NYSE:SNA)
  • Tyson Foods (NYSE:TSN)

Helping to make the case for these seven stocks, each also earns a coveted A rating in Dividend Grader.

Best Dividend Stocks: Ares Management (ARES)

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In operation since 1997, Ares Management describes itself as a “global alternative investment manager.” The company operates across five integrated business segments: credit, private equity, strategic initiatives, real estate and secondary markets. 

ARES stock has been in growth mode since 2019. From the start of that year through today, investors have been rewarded with a 293% return. That performance has earned ARES support from investment analysts. Those polled by the Wall Street Journal rate ARES stock as a consensus “Buy.” Their average 12-month price target of $81.29 offers 10% upside.

And let’s not forget the reason why Ares Management is on this list of best dividend stocks. Its dividend yield is currently running at 2.34%.

The current Dividend Grader rating for ARES stock is A.

Fidelity National Financial (FNF)

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Fidelity National Financial holds the No. 1 position in the U.S. for title insurance and settlement services in the residential and commercial real estate markets. A red-hot real estate market has helped turn FNF stock into a big growth story through the pandemic. Since the markets crashed last March, shares are up 119% and are currently just off their all-time record high close of $49.06 on Aug. 13.

In its second quarter (reported on Aug. 3), FNF reported $3.9 billion in revenue. That’s up 62.5% year-over-year.

The company also announced its quarterly dividend would be 40 cents per share, an 11% hike. FNF’s dividend yield now sits at 2.87%.

At the time of publication, FNF stock earned an A rating in Dividend Grader.

Best Dividend Stocks: Interpublic (IPG)

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New York’s Interpublic Group of Companies is a global collection of dozens of advertising and marketing firms. Interpublic’s companies employ 53,000 staff and the company currently has a market capitalization of $14.35 billion. In its most recent quarter, IPG reported net revenue of $2.03 billion.

In other words, this is not a small potatoes company. IPG stock has been in growth mode for over a decade and that has ramped up since the pandemic. So far in 2021, IPG shares have delivered a return of 58%. In July, IPG announced a quarterly dividend of 27 cents per share, making its dividend yield 2.8%.

IPG stock currently earns an A rating in Dividend Grader.

LyondellBasell Industries (LYB)

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LyondellBasell is a global leader in refining and the production of plastic and chemicals. It’s the world’s largest producer of polypropylene. Investors might be cautious about a company so deeply intertwined with plastic production, but the reality is plastics aren’t going anywhere.

The tide is turning against single-use plastic packaging, but plastics in general are too useful and found in virtually everything. The company promotes its sustainability efforts, including mechanical and molecular recycling.

LYB stock has posted growth of 41% over the past 12 months. It’s also a top choice if you’re looking to add the best dividend stocks to your portfolio. LYB pays a dividend yield of 4.07%.

The current Dividend Grader rating for LYB stock is A.

Best Dividend Stocks: Prudential (PRU)

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Prudential is the largest insurance company in the U.S., managing over $1.7 trillion in assets. It’s also one of the most recognizable American companies, with 50 million customers and a history stretching back 145 years.

The insurance industry took a pounding from the effects of the pandemic — from health impacts and deaths to retail and restaurant closings, insurance companies were on the hook. In the second quarter of 2020 when the pandemic was raging, Prudential reported a net loss of $2.4 billion.

In comparison, its second quarter of 2021 saw the company report net income of $2.2 billion. Over the past 12 months, PRU stock has also been in recovery mode, climbing 52% to top its pre-pandemic levels. 

Even through the worst of the pandemic, Prudential continued to pay quarterly dividends. At time of publication, its dividend yield was 4.17%.

The Dividend Grader rating for PRU stock at time of publication was A.

Snap-on (SNA)

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Snap-on Tools has been in business since 1920, largely tying its fortunes to the automotive industry by supplying professional-quality tools to mechanics. The pandemic resulted in lockdowns and a surge in the working from home trend in 2020. That meant far less driving, which in turn cut demand for auto repairs.

However, with re-opening under way, people are driving again. In addition, the global chip shortage has resulted in a shortage of new cars, and driven up demand for used cars. Used vehicles require more repairs to keep them on the road — good news when you’re in the business of supplying auto repair shops. 

Snap-on revenue reflects the dramatic change from last year. In its most recent quarter, the company reported sales up 49.3% year-over-year. They were also up 13.7% from the same quarter in 2019, so it’s more than just a recovery. Reflecting this performance, SNA stock has posted growth of 35% so far in 2021, and closed at an all-time high in June.

Snap-on continued to pay a quarterly dividend through 2020 and its current dividend yield is 2.07%.

SNA stock earned an A rating in Dividend Grader at the time of publication.

Best Dividend Stocks: Tyson Foods (TSN)

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You probably think of Tyson Foods as one of the world’s largest chicken producers. It is. However, Tyson is also a big player in the processing of beef and pork. In fact, the company describes itself as having “one of the largest and most robust protein portfolios in the food industry. 

Tyson’s meat processing plants turned out to be one of the big Covid-19 outbreak stories of 2020. Needless to say, that was a challenge for the company. So was the closure of many restaurants. Tyson’s improving picture in 2021 saw the company beat analyst expectations for earnings in its most recent quarter, but Covid-19’s ongoing impact to operations remains a concern.

Despite the ongoing pandemic-related challenges, TSN stock is up 24% so far in 2021. Tyson also continues to be a pick among best dividend stocks with dividend yield of 2.14%. 

TSN stock is currently rated as an A in Dividend Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.

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