3 dividend stocks I’d buy before 2021

first_img 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. Our 6 ‘Best Buys Now’ Shares 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. Enter Your Email Address 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… 3 dividend stocks I’d buy before 2021 Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! G A Chester has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.center_img You don’t need me to tell you that 2020 has been a difficult year for holders of dividend stocks. Due to a swathe of suspensions and cuts, many income investors have suffered reduced cash streams from their portfolios. Equally, those pursuing dividend reinvestment strategies have had opportunities to buy more shares at cheap prices snatched from them.However, looking ahead, a number of companies have reset their dividends for sustainable annual growth. With attractive yields — due to current lower share prices — adding to the improved visibility on their future payouts, here are three dividend stocks I’d buy before 2021.5G 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 dynamoRegulator Ofwat has set a tougher pricing regime for the new five-year regulatory period (2020-25) for water companies. It’s also increased performance targets. However, United Utilities (LSE: UU) is confident it can continue its record of earning additional returns from cost efficiencies and beating the regulator’s performance targets.UU’s board has set a new dividend policy. This is for annual increases in line with consumer price index inflation, including housing costs (CPIH). Dividend growth is expected to be lower than under its previous policy of increases at least in line with retail price index inflation (RPI). But I believe UU remains an attractive dividend stock for its relatively predictable earnings and dividends.Buyers of the stock today will pick up this year’s interim dividend, as the ex-dividend date is 17 December. And City analysts’ forecasts for the full-year payout give a sector-leading yield of 4.6%.Dividend stock #2Under a new chief executive, insurer Aviva (LSE: AV) is pursuing a strategy of simplification. It’s focusing on its market-leading businesses in the UK, Ireland and Canada. And it’s just set a new dividend policy based on the cash flows from these businesses.As with UU, buyers of AV stock today will bag this year’s interim dividend. The ex-dividend date is 10 December. The board’s also told us the level of the final dividend it expects to pay. Investors can look forward to a juicy yield of 6.3% on the full-year payout. The board expects the dividend to be sustainable and resilient in times of stress. And to grow by low to mid-single digits over time.As an added bonus, the company’s in the process of selling non-core businesses, and pledged to return excess capital to shareholders. In other words, special dividends, or value-enhancing share buybacks, are on the cards.Dividend stock #3My third pick is gold miner Centamin (LSE: CEY). It has a history of generating cash and paying dividends, although operations and production have been somewhat erratic at times.However, this should improve after recent changes in both the boardroom and at the operational management level. The new team is very much focused on investing for operating stability and consistency. It’s positioning its world-class Sukari mine in Egypt to reliably produce 450,000-500,000 ounces of gold per annum.The board intends to distribute at least $104m in total dividends this year and at least $105m in 2021. The company’s already paid this year’s interim dividend ($69m gross), so the final will be lower. However, a $105m payout next year equates to a yield of 5.6% at current exchange rates. As such, CEY is another dividend stock I’d be happy to buy before 2021. Image source: Getty Images There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Simply click below to discover how you can take advantage of this. G A Chester | Thursday, 3rd December, 2020 | More on: AV CEY UU See all posts by G A Chesterlast_img read more