Many GameStop buyers want quick profits. They rely on the next man to pay more for stocks.
At the time of writing, GME shares are trading at around US $ 181 per share, but the consensus price target is around US $ 40, with the most bearish analysts seeking a price target of $ 3.50. Therefore, buying stock can be a bet and a quick way to lose money.
Equity investments do not have to be gambling. You can put odds in your favor.
For a more certain degree to grow your capital, new investors may consider avoiding expensive flyers. Instead, select the first stock of proven dividend stocks.
Once you have built a properly sized portfolio of proven dividend stocks, you can consider investing part of your portfolio in a high flyer, if needed. This way, if something happens to your high flyer, you can count on your core dividend stock portfolio.
Here are some dividend stocks to consider.
TC Energy (TSX: TRP)(NYSE: TRP) It offers far more predictable returns than GME stocks. An important part of its long-term return comes from its large dividend yield. This means that investors do not have to rely on the sale of shares.
This is all about passive investment!After purchasing shares of proven dividend growth stock TC Energy, You can sit on it, do nothing and earn passive income.
In fact, the company has increased dividends for the 20th consecutive year. It currently offers a dividend yield of 5.8% for approximately $ 60 per share. This is very attractive, especially in today’s ultra-low interest rate environment.
You can expect a decent price increase. Analysts believe that a rise of about 15% is possible in the next 12 months.
TC Energy’s network consists primarily of natural gas and liquid pipelines. Investors can supplement their holdings of TC Energy with the following utility stocks:
Algonquin (TSX: AQN)(NYSE: AQN) A combination of regulated utilities and renewable energy facilities. Approximately 70% of the portfolio is regulated water, electricity and gas utilities across 16 jurisdictions, and approximately 30% of the business is primarily renewable assets under long-term contracts.
By 2025, we have a US $ 9.4 billion capital program that will maintain a portfolio structure that balances 70/30 of regulated utilities and renewables.
Therefore, adjusted earnings per share (EPS) remained resilient during the pandemic, growing 2% last year. Based on the company’s midpoint guidance, it is estimated that 2021 adjusted EPS will increase by about 14% this year to about US $ 0.735. This means a dividend payout ratio of approximately 84%, based on the current annual payout ratio of $ 0.62 per share.
Currently, the dividend stock yield is about 4%. According to the normal schedule, Algonquin will increase its dividend in May. For reference, the dividend growth rate for 5 years is 9.7%.
If you need a predictable return with a great dividend, TC Energy or Algonquin, Recently depressed. They are a safer investment than something like GME stocks.
Also, look for these strains that are safer than GME.
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