In the current economic climate, it is extremely difficult to have both a high dividend return and to keep your original investment. The riskiest sector of the stock market where its hard forecasting the future development of the business, is typically where the higher-yielding stocks can be found.
That being said, there are always investments that emerge periodically for investors who are seeking capital gains. Following are three stocks that might be worth keeping in your retirement portfolio to generate decent cash flows.
1 . Chevron
US oil and gas company Chevron (NYSE:CVX) may potentially be a good investment option for those seeking a larger dividend return. Increased commodity prices and strict controls on expenditure are both boosting the integrated energy, chemicals, and petroleum company headquartered in California.
To add to the above point, Chevron’s financial situation and business practices have enabled it to enjoy a lower debt burden during the pandemic, and operate with more financial flexibility.
Among its Big Oil counterparts including Exxon Mobil and British Petroleum, Chevron’s debt ratio is 22.4 percent, the lowest of the group.
Although many oil companies have implemented cost-cutting measures in order to stay afloat during the pandemic, Chevron is in a relatively good position to return greater cash to investors. A growing and positive outlook makes the company more appealing to investors seeking to earn dividends passively.
Chevron also announced in July that it is resuming its share-buyback program, which would increase shareholder returns in the range of $2 billion to $3 billion per year.
At the same time that Chevron began its repurchase program, it also implemented a dividend hike earlier this year to become the only Western oil supermajor to increase dividend payments above the level prior to the outbreak of the COVID-19 pandemic.
2 . Simon Property Group
Reduced visitation to retail plazas is hurting malls’ long-term sustainability and companies managing malls are battling for survival.
Having said that, new data shows that brick-and-mortar establishments are growing in popularity with customers eager to shop. Agencies providing insights from shopping data claim that July 2021 saw retail mall foot traffic exceeding 2019 levels for the first time since the pandemic began.
Following the pandemic-led downturn, stocks of America’s biggest mall operator, Simon Property Group (NYSE:SPG), have risen beyond 50% in 2021, which indicates that investors still view the business as one with plenty of promise.
3 . BCE
For retired individuals, Canada’s biggest telecom company, BCE (NYSE:BCE), presents an excellent income-producing opportunity.
Because the general population was distracted from recovering from the pandemic and a majority of the staff was forced to work from home, telecommunication firms had difficulty increasing their subscriber base.
The period of stagnation during which the Toronto-based firm’s shares suffered a price decline appears to have ended. After reporting strong second-quarter results for 2021, the stock price has risen by more than 20 percent. In Q2 2021, the shares of this business have grown around 20% as the company has released better-than-expected earnings. With a 31% increase year-over-year, $751 million were reported in adjusted net earnings.
While the improved net income is contributing to BCE’s balance sheet, the company remains well-capitalized at the conclusion of Q2 with $5.3 billion in available liquidity.
BCE has been following a strategy of raising dividends by 5% each year for a while, with which countering inflation has been made possible. On average, up to 75% of free cash flow payouts are distributed by the business, resulting in almost a two-fold increase in payouts annually since Q4 2008.
Those were the stocks that can give a tremendous boost to your retirement income. If you want to read more informative articles on stock trading, visit here. Please don’t forget to subscribe to our Youtube Channel to watch the latest videos on how to invest profitably.