Posted by The TaxAdvocate Group, LLC

Dividend Stocks to Buy in 2020 With Growth Potential

Dividend Stocks to Buy in 2020 With Growth Potential

It may be hard to believe, but in just a few weeks, we will say goodbye to 2019. Although investors had short-term difficulties, it was a solid year for the stock market. The S & P 500 rose by 23%.

How are these returns? Well, let's say that the S & P 500, including dividends and, if adjusted for inflation, historically saves 7% a year.

And not only that, these clues stand out. Of the companies with a market capitalization of at least $ 300 million, 124 had earned at least 100% a year until November 5th. The fact that the calendar is about to change in a new year does not mean that this optimism cannot continue.

If you are looking for some interesting investment ideas for next year, consider these actions as potential candidates to double your money by 2020.

Here are some secure titles that should be great candidates to buy and keep for at least the next year.

Altria (MO): dividend yield: 7.6%

As Altria's existing cigarette sales are tied to cash flow from its stake in Anheuser-Busch (NYSE: BUD), they are sufficient to cover dividends. If Juul begins to offer Altria a significant cash flow, it will bear a higher share price and dividend, but there is no need to justify the current share price of $ 46 million and a dividend yield higher than 7%. In the long term, tobacco companies have continued to generate vast amounts of cash, despite significant regulatory interventions and intense media coverage.

The worries of vaping will sooner or later pass; however, the desire to consume nicotine is not going anywhere. By the end of 2020, buyers of cheap Altria would have benefited from their dividends for fear of the forgotten vaporizer.

Innovative industrial properties

Yes, Cannabis Real Estate Funds (REITs) are real and can be very profitable! Innovative Industrial Properties (NYSE: IIPR), the best-known Wall Street cannabis fund, is already profitable and growing at a staggering pace. After starting 2019 with 11 properties for growing and processing marijuana for medical purposes in its portfolio, it now holds 38 properties in 13 states, covering 2.8 million square meters of valuable space.

The beauty of the innovative industrial properties business model is that it creates highly predictable cash flow. The company's weighted average remaining term is 15.6 years, and the current average return on invested capital of $ 403.3 million is 13.8%. At this rate, you will fully recover the invested money in just over five years.

As long as cannabis continues to be illegal at the federal level in the United States, access to capital will be dangerous for cannabis producers. This makes the innovative model of industrial purchasing and leasing a gold mine by 2020.

NextEra Energy Partners (tick: NEP): current performance: 4%

NextEra Energy Partners is an independent company that owns and operates clean energy projects in the United States. This is a perfect example of a combination of revenue and growth, with NEP shares having the utility features many low-risk investors enjoy. Still, the positive side of renewable energy activities as the world economy is growing away from fossil fuels. It is expected that a growth rate of more than 30% both for the current year and for the forecast of turnover for next year. This will help you support your dividend and share price.

Pinterest

If the Facebook IPO has been lost and impacted in the past seven years, do not worry. The Pinterest social networking photo-sharing site (NYSE: PINS), which allows users to create their virtual cards based on their interests, could be the second chance to make a profit.

Like most of the brand's social networking sites, Pinterest has seen tremendous growth in the number of users. The monthly amount of active users (MAU) increased to 322 million at the end of September, 71 million more than during the same period last year. In particular, this increase is mainly due to international markets (38% increase compared to the UAM, compared to 8% in the United States). Although advertising revenues are minimal in foreign markets, they show that Pinterest has a global appeal.

The company is also working to monetize these users by increasing the average revenue per user (ARPU) worldwide. In recent quarters, Pinterest has streamlined its small business advertising system, focused its efforts on growing ARPUs in foreign markets, and advocated for videos with a much higher advertising rate than still images. These troubles seem to be paying off, and the international ARPU had doubled from $ 0.06 to $ 0.13 last year.

Given Pinterest's plans to increase recurring profitability next year, a doubling of its stock is certainly not excluded.

Dow (DOW): dividend yield: 5.9%

Dow (NYSE: DOW) is not the safest company on this list. In general, there is a trade-off between the dividend yield and the security of this dividend. But at least until the end of 2020, Dow should be able to maintain the current level of profits by offering shareholders a return of nearly 6%. And the price of the stock could be appreciated, given the current fears and concerns about the recession due to the slowdown in the chemicals market.

In short, Dow is a high-performance company that also tackles a possible disruption of the trade war. Add all the problems of the new division, and investors do not know what to do with the new DOW title. My opinion, at least until the end of 2020, is to look for a sure dividend of 6% and the possibility of a good increase in share prices if the global economic climate improves.

We have already seen significant economic improvement. Beyond the fact that the data is still entirely secure, the performance curve has returned to normal. Do you all remember the panic of the performance curve recorded a few months ago? This is gone now. A company like Dow wins more when the economic situation is recovering. With profits 11 times higher, DOW shares are also a real boon.

Conclusion

Of course, this is only a screen for new ideas, but it's a start. Investors worried about macroeconomic conditions can sleep better at night thanks to safe economic stocks and dividends.


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