Barclays is betting these 3 dividend stocks will beat the S&P 500 — if you’re looking for income, snag yields as high as 10.3% – Yahoo Finance

December 12, 2021 by No Comments

Barclays is betting these 3 dividend stocks will beat the S&P 500 — if you’re looking for income, snag yields as high as 10.3%

In the current market frenzy, with rabid investors chasing after the hottest tickers, dividend stocks often get ignored.

But a steadily growing stream of dividends will help anyone sleep better at night. And besides, with savings accounts paying next to nothing these days, who wouldn’t want a better way to earn passive income?

Recent studies prove once again that dividend stocks have the potential to:

  • Offer a plump income stream in good times and bad.

  • Provide diversification to growth-oriented portfolios.

  • Outperform the S&P 500 over the long haul.

Take a look at three dividend stocks that investment banking giant Barclays has given an “overweight” rating. And if those don’t appeal, plenty of exotic assets can provide passive income, too.

JPMorgan Chase (JPM)

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With inflation running hot, many investors are concerned about interest rate hikes from the Fed.

Banks, however, typically do well in a rising interest rate environment. They get to charge more to lend money, and higher rates signal a stronger economy in which people can afford to pay those loans.

JPMorgan Chase is the largest bank in the U.S., with an astounding $3.8 trillion in assets. Trading at roughly $160 per share, the stock has climbed 27% year-to-date.

Barclays sees even more upside ahead in JPMorgan, as it has an overweight rating on the bank and a price target of $193.

Business has improved a lot from the pandemic-pained days of 2020. In Q3 of 2021, JPMorgan produced $3.74 per share in earnings, marking a 28% increase from the $2.92 per share earned in the year-ago period.

In June, the bank announced an 11% increase to its quarterly dividend rate to $1 per share, which comes out to an annual yield of 2.5% today.

Mind you, JPMorgan is not the only bank that gave a pay raise to shareholders this year. Peers like Goldman Sachs, Bank of America and Morgan Stanley have also increased their dividends.

If you don’t want to pick individual stocks, you can always build a diversified passive income portfolio automatically just by using your “spare change.”

Microsoft (MSFT)

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Source: https://finance.yahoo.com/news/barclays-betting-3-dividend-stocks-211500315.html

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