3 Dividend-Paying Stocks for 2021

Stocks with an economic moat, a disciplined dividend policy and favourable share prices are the best picks for our equity income portfolio. Here are three that fit the bill

Francesco Lavecchia 21 December, 2020 | 11:51AM

dividend stocks
The end of a year is a natural time to reflect on your investment portfolio and perhaps make a few changes for the year ahead. So how should equity income investors position for 2021?

After a volatile year, which saw a raft of dividend cuts, picking the best income options has never seemed so difficult. But we know from Morningstar research that companies with a solid business model have proved able to constantly increase their pay outs over the years.

The Morningstar Economic Moat is a good indicator of such businesses. Morningstar analysts pay high attention to how companies are positioned within the competitive environment and assign them an economic moat (wide or narrow) to those that demonstrate a business model so solid that can generate returns in excess of their cost of capital in the next give or 10 years.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Francesco Lavecchia

Francesco Lavecchia  è Research Editor di Morningstar in Italia

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