Which Robinhood Stocks Pay Dividends?

Which Robinhood Stocks Pay Dividends? The Robinhood app certainly lived up to its namesake so far, allowing everyone access to invest in a wide range of investments, including dividend stocks.

It quickly became popular with Millennials, with an average user age of 26, and its 10 million users helped bring this company to an $11.2 billion valuation. Of course, as a private company, you’re likely more interested in how you can profit from Robinhood. The best way to do that is understanding which Robinhood stocks pay dividends.

If Robinhood is your stock brokerage, check out one of these high-dividend securities you can buy through the app’s marketplace.

Toronto-Dominion Bank Dividend Is Over 5%

TD Bank Group (NYSE:TD) is one of the largest banks in North America, with over 26 million active customers worldwide.

There are over 1,200 TD Bank branches across the eastern U.S., and it’s the second largest bank in Canada, where it’s headquartered.

In the second quarter of 2020, the bank had $1.674 billion in assets and 89,000 full-time-equivalent employees. This footprint across the U.S. and Canada represents a large portion of the company’s earnings, and it’s a strong dividend-paying investment, as bank stocks tend to be.

As of Fall 2020, TD bank pays a $0.79 quarterly dividend, which amounts to approximately 5.2% dividend yield and nearly 50% payout ratio.

This dividend is likely to remain stagnant through 2021, as both countries work through the toughest economic crisis of our generation. In fact, the company is taking concrete steps to help small businesses weather the financial storm in the wake of the 2020 novel coronavirus pandemic.

The bank partnered with fintech company Autobooks to provide an online accounting and payment platform for struggling small businesses, called TD Online Accounting. This streamlined platform lets small business owners conduct many critical administrative and accounting tasks to make post-COVID bookkeeping easier.

The move came in response to the company’s small business survey which found most small business owners lost money during the crisis. Much of the problem is SBOs were unprepared through disaster planning for their business operations.

It’s just one of many tech-focused initiatives the company is running to ensure it stays ahead of modern banking trends. The bank also accepted 100,000 Paycheck Protection Program (PPP) loans that ensured customers were able to pay their employees and continue their businesses. These types of positive steps have analysts confident the bank’s stock will continue paying steady dividends in the near future.

Verizon’s Dividend Is North Of 4%

Verizon Communications (NYSE:VZ) is a massive conglomerate that includes Verizon Wireless, XO Communications, Verizon Media (AOL, Yahoo!, etc), and Verizon Hearst Media Partners, which owns Complex Media.

Verizon has a solid track record with payments, and it increased its dividend for 14 consecutive years, paying $2.44 per share heading into 2020. Its Q2 2020 earnings call made it clear the company will continue this streak, showing a $4.84 billion increase in net income, which comes out to $1.13 per share.

It’s not all rosy though – Verizon’s media unit lost 24.5% revenue on the back of sluggish advertising sales for its brands like HuffPost and TechCrunch. In-store sales also suffered, as municipal lockdowns slowed the rates of customers coming into stores.

However, Verizon’s internet service became a crucial selling point when the world was stuck working and learning from home. And the company’s cash on hand drastically increased to $7.882 billion in June 2020, giving it a well-stocked war chest should it need acquisitions to stay afloat.

Verizon paid out over $10.1 billion in dividends over the past five years, and its free cash flow can support any obstacles in the road moving forward. The dominant obstacle for Verizon in the coming years is the 5G rollout, which it’s banking its wireless future on.

Verizon is the early frontrunner in a slow-moving upgrade that will provide massive speed increases. This network update is going to cost large up-front investments that won’t start generating substantial revenues until next year or later.

This comes at a time when a wireless pricing war seems imminent, which will continue cutting into Verizon’s profit margins. However, its strong cash reserves still give it the ability to continue paying out these great dividends for the foreseeable future.

International Paper Pays An Astonishing 6% Dividend

International Paper Co (NYSE:IP) is the world’s largest producer of paper and pulp and was incorporated all the way back in 1898 when 17 pulp and paper mills merged.

Even with the world moving to a paperless environment, the company still has large contracts with the U.S. government and other entities that require items such as paper checks.

So, those paper checks mailed out for the CARES Act coronavirus stimulus were most likely printed on International Paper (along with the envelopes they’re mailed in).

The company’s dividend history over the past ten years is stellar, showing a 6.4% dividend yield and plenty of stock buyback opportunities. It paid out approximately 65% of business profits (or 34% of cash flow) as dividends. Its lower payout ratio is set to create a safety net, so the payments get cut to shareholders more consistently and sustainably.

International Paper does have a noticeable amount of debt on its books, and it still has several obstacles to overcome from the COVID-19 crisis. This could mean lower dividends over the next 12-month period, but you should still expect to receive payments.

The stability of the company’s dividend history leads many analysts to believe it will fare well in the coming months as geopolitical factors leading in the U.S. election could provide market volatility.

Each of these three companies is an established leader in its respective industry. The companies themselves could have rocky share price values over the next few years, but they’re very likely to keep up with their dividends payments.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.