I believe these 3 dividend stocks are practically money machines

first_img Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! Rupert Hargreaves owns shares in British American Tobacco. The Motley Fool UK has recommended Tritax Big Box REIT. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Image source: Getty Images. I believe these 3 dividend stocks are practically money machines There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today… Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Rupert Hargreaves | Sunday, 29th November, 2020 | More on: BATS BBOX BHP center_img Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Most investors buy dividend stocks for one reason: they want dividend income. Unfortunately, many income investments have disappointed this year. At the beginning of the pandemic, countless companies cancelled their dividends to preserve cash. While firms have since restarted their distributions, it still looks as if UK investors will be left nursing a significant dividend hole this year. However, some companies have bucked the trend. These dividend stocks are practically money machines. I’m interested in buying a selection of them. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Dividend stocksOne dividend stock that has performed exceptionally well over the past 12 months is British American Tobacco (LSE: BATS). This company did not reduce its dividend in the pandemic, and management is still forecasting an increase in the payout for the full year. Yet, despite this positive performance, the stock continues to trade below the level at which it began the year.I think this could be a great opportunity, although it is, of course, a ‘sin stock’. Shares in the tobacco giant currently support a dividend yield of 8.3%. This is backed up with robust cash flows from its operations. It also has a long track record of above-inflation dividend increases. That’s why I believe the dividend stock is practically a money machine. Over the past few months, it has proven that no matter what the economic environment, investors can rely on the dividend. Big boxes E-commerce has been the primary beneficiary of the pandemic. A side effect of this is the growing demand for logistical assets such as warehouses, to help fulfil orders. That’s where Tritax Big Box (LSE: BBOX) comes into play. This company specialises in constructing and leasing so-called big box warehouses. These giant facilities are essential parts of the e-commerce logistical chain. Tritax builds the facilities and then leases them to customers on long contracts. The real estate investment trust is then able to return any excess profit to investors. At the time of writing, the stock supports a dividend yield of 4%. I believe this is exceptionally secure as it is backed by cash flows from the growing e-commerce sector. As such, I reckon this is an excellent way for me to gain exposure to a booming sector and generate a steady income stream at the same time. ReconstructionGovernments around the world have committed hundreds of billions of dollars in funding to rebuild after the pandemic. This suggests to me there’s going to be a surge in demand for essential commodities in the years ahead. One of the best ways for me to play this trend, in my opinion, is to own BHP (LSE: BHP). As one of the largest mining groups in the world, the company has the best profit margins in the sector. This means it is also excessively cash generative. After years of reducing debt, it can return a lot of money to investors as well. Analysts reckon the stock has the potential to support a dividend yield of 6% next year. I think that’s conservative. The price of iron ore has already jumped more than 40% in 2020. This tells me BHP could report big profits for 2020. Considering the firm’s history of returning cash to shareholders, I think this could translate into large dividends.  Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Rupert Hargreaveslast_img

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