15th Apr 2020

Two unusual dividend stocks to think about during COVID pandemic

Many dividend investors going for utilities, industry, healthcare or the food sector in a time of crisis. These essential companies provide relative stability in the volatile market and much-needed stability. There are a lot of good choices like Abbvie (ABBV) or 3M (MMM) which are greatly diversified and healthy companies.

But pandemic won’t last forever and as investors, we should also look in the future, especially if we investing in the long run and building a stable dividend portfolio. Today we selected two companies which took a pretty heavy hit but we believe they will be recovered and this may be time for buying good dividend payers in huge discounts.

Starbucks (SBUX)

Starbucks is a dominating force in the coffee industry. It currently operates around 31,256 stores in 78 countries, for this reason, this company may be perceived as a more mature and stable dividend payer but without a lot of growth potential. But that’s not true, the company currently working on a massive expansion in India. Entry to market with 1,2 billion potential customers will be done in cooperation with Indian conglomerate Tata in a joint venture named Tata Starbucks and chances for success are high. Stock is currently trading almost at its 52-week low. If you believe in the economic recovery and Starbucks expansion plan, now it may be an excellent time to buy.

Anheuser-Busch InBev (BUD)

Anheuser-Busch InBev is a Belgian multinational beverage and brewing company. It is listed on NYSE and currently already recovering from the 52-week low and trading for a very reasonable 10.61 P/E ratio. BUD dividend yield is above 4 %. Anheuser-Busch InBev is the biggest brewery in the world and owns tens of breweries across the world from Corona, Budweiser, Bud Light to many other popular beers in the Asian and African markets. If you like to own a soft-drink alcohol company with great diversification BUD may be a choice for you and it is currently selling at a fair price.

Not sure about what to buy next?

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