Business & Investment

Top two dividend stocks in 2021

Investors plunge into volatile, deficit tech stocks, but knowledgeable investors may want to consider safer options. High-yielding dividend stocks that are significantly undervalued 2021 economic recovery..

With that in mind, here are the top two dividend stocks of the year.

Riocan REIT

Commercial real estate developers and landlords Riokan Real Estate Investment Trust (TSX: REI.U) is the victim of the blockade. Much of RioCan’s portfolio was abandoned this year due to the closure of malls and offices. The rental market is struggling and has impacted Rio Can’s cash flow.

The impact was fully recognized last month when RioCan’s management had to cut its payout ratio by 33%.

However, once the vaccine is deployed and reopened on the horizon, RioCan’s properties can be seen to recover its foothold. That doesn’t mean that rental yields and real estate values ​​will skyrocket. However, it may put a lower limit on Rio Can’s cash flow and book value.

Investors overlook this fact. RioCan shares are traded at a 30% discount on book value, offering a juicy 5.6% dividend yield. That is why it has become an ideal dividend stock for 2021 and beyond.

Embridge

Energy giant Embridge (TSX: ENB)(NYSE: ENB) Another top pick. Inventory has been struggling for years. First due to the crash of oil prices, and now due to the environmental policies developed by the Biden administration south of the border.

However, Embridge is in a better position than most investors are aware of.

Warren Buffett, which has invested $ 4 billion in Dominion Energy’s natural gas transportation and storage assets, reinforces the theory that natural gas is the fuel of the near future. Enbridge is one of the largest natural gas players in North America, driving nearly 20% of the natural gas consumed in the United States.

The shift in focus from fossil fuels to renewables should have a positive impact on natural gas demand. Similarly, Enbridge remains in a good position as one of the largest beneficiaries, given that it operates the third largest natural gas facility in North America.

What’s more, Embridge is investing heavily in future energy opportunities. The development of a pipeline focused solely on natural gas, hydrogen and renewable energies has largely confirmed its long-term outlook.Similarly, embridge will be essential for decades to come

The booming natural gas business may explain why Embridge pays a huge dividend yield of 7.5% when most energy companies rely on capital savings. The company expects to increase its distributable cash flow at a compound annual growth rate of 5-7% through 2023. Similarly, you should be able to pursue safer payments by increasing your dividend by up to 3%.

Enbridge will be a perfect play for investors looking to expose themselves in the confused energy industry. A 7.5% dividend yield should excite income-conscious investors.

Conclusion

The economic recovery in 2021 made Rio Can REIT and Enbridge the top dividend stocks.

Looking for higher quality stocks? Here is the list.

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Stupid contributor Vishesh Raisinghani There are no positions in any of the listed stocks. Motley Fool owns and recommends a stake in Enbridge.

Top two dividend stocks in 2021

https://www.fool.ca/2021/01/30/top-2-dividend-stocks-for-2021/ Top two dividend stocks in 2021

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