FidelityConnects

Dividend-paying companies: 2021 outlook - Don Newman

December 1, 2020

Dividend investor Don Newman discusses dividend-paying companies and dividend yields in today’s current environment and in the year ahead.  He says dividend-paying companies may be a great option for investors who are seeking yield. He says these companies are trading at a very attractive price, are maintaining their dividends, and yielding roughly the same amount at high-yield bonds and with more opportunity for upside capture as the economy reopens in 2021 and 2022.  Don stresses the importance of differentiating between secular winners and COVID winners.  For example COVID winners are soup companies and laptop manufacturers.  He says a portfolio built solely on COVID winners will be very imbalanced.