These are the 5 best dividend pearls

Mark Peden:

the Den Norske Bank (DNB) is the largest financial services group in Norway. The activities are mainly focused on Norway. However, the bank is also one of the world’s leading maritime banks and a major international player in the energy sector. With a structurally underpenetrated domestic deposit market and a local central bank likely to raise interest rates in the next two years, the potential for return is incredible. The recent purchase of Norway’s first online bank, Sbanken, adds further weight to an excellent investment case. The regulator has allowed the group to pay regular dividends on a consistent basis, in contrast to the ECB’s tightening policy in the eurozone. And the highly capitalized balance sheet means dividends could continue to grow in the future. Having paid the fiscal year 2019 dividend earlier in the year, shareholders now expect the fiscal year 2020 dividend to be paid shortly as well. With a dividend yield of 4.8% and a likely uptrend, this stock could offer excellent potential for investors looking to add to their earnings.


Matt Harding:

Cincinnati Financial (CINF)) is indeed a rare find. Not many companies can claim to have increased their dividends for 60 years in a row; during the global financial crisis and even during a pandemic. Financial strength is one of its competitive advantages, which is extremely important for an American insurance company. A consistent investment policy, local decision-making and excellent agency relationships could further contribute to premium growth above the industry average in years to come. Post-pandemic insurance risk reassessment should also improve profitability. For investors, that could mean continued dividend growth. With an above-market dividend yield of 2.1%, investors’ money appears to be in safe hands.

Matt Harding:

Digital Real Estate (DLR) operates nearly 300 data centers worldwide and is one of the largest real estate investment trusts (REITs) in the US Working from home during the pandemic would not have been possible without Digital Realty. The data that we generate through our virtual life is stored in huge server warehouses, the so-called clouds. As our world becomes more digital, so does the need for data storage. Computing power has also accelerated exponentially and with it the demand for Digital Realty services. This digital revolution shows no signs of slowing down and should offer a long-term growth prospect. On average, Digital Realty’s dividend has grown 10% per year for the last 16 years and is now over 3%.

black robin:

simple technology is a Taiwanese technology company best known for manufacturing batteries for smartphones, tablets, and laptops. They are world leaders in this field and supply many major brands including Apple. The company is also opening up new markets, such as electric bike batteries and data center products. The high market share and technological leadership allow them to achieve a return on capital of 20%. It is a very cash-generating business with limited capital requirements, and the business has a strong balance sheet with plenty of cash on hand. This means that they can return cash to shareholders. They have a 70% dividend payout ratio with the potential for a return of more than 5% over this year’s expected dividend.

Douglas Scott:

the phoenix group is a UK-based company specializing in the acquisition and management of life insurance and open-end pension funds. It also has an open business in the UK for long-term savings and pension products sold under the Standard Life brand. The company has introduced two conditions for future dividend increases. First, more than £800 million in additional cash must be generated annually from new business, and second, cash inflows must exceed cash outflows. Phoenix has a strong track record of exceeding all management expectations and has a strong capital position. To maintain the current dividend and increase it in the long term, the company must continue to win business and/or build a new business. The current economic and regulatory environment will help the company do this. In addition, a possible short-term sale of the European business could result in a return flow of income or new M&A activity. A 6.5% dividend yield with growth potential could mean a “rising Phoenix stock price.”

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