3 top dividend stocks I’d buy if the coronavirus sell-off gets worse

first_img See all posts by Paul Summers 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. Image source: Getty Images. Watching markets whipsaw isn’t much fun. But I don’t think the last few weeks should overly worry those invested for income (assuming they’re adequately diversified).Of course, some dividend stocks are more worthy of your capital than others. Here are what I believe to be three examples of the former.  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…IG GroupIn contrast to many companies, online trading giant IG Group (LSE: IGG) benefits from periods of market volatility. This goes some way to explaining why the FTSE 250 constituent’s share price has fared better than most over the last month.Peers Plus 500 and CMC Markets have already reported an increase in trading. And it looks like IG’s next update on 19 March is likely to contain good news. You should treat analyst estimates with caution, given many of these will need to be revised. But IG’s stock trades on a little under 16 times earnings as things stand. For a quality operator that only stands to benefit if traders remain active, I think that’s already a reasonable valuation.Aside from the consistently high returns it generates on the money it ploughs into the business, IG is in fine financial fettle with stacks of cash on the balance sheet.Dividends hikes may be on hold as it adjusts to the introduction of new regulations to protect retail traders. But IG’s 43.2p per share payout translates to a yield of 6%. That’s worth the risk, in my opinion. BritvicIn contrast to discretionary items like cars and mobile phones, demand for low-ticket beverages is unlikely to drop off a cliff, even during recessionary times. This is why I think Robinsons and J2O owner Britvic (LSE: BVIC) is another solid-looking income stock from the FTSE 250.Britvic’s share price has slipped over the last few weeks. But it certainly hasn’t been as badly hit as others on the market. Again, for what it’s worth, the valuation is also cheap, relative to industry peers. It’s a touch over 13 times expected earnings. The 3.8% yield is not the highest you can find in the second tier. But it does look to be fully covered by profits (for now). This is more than you can say for the cash payouts of other listed firms. It’s also worth mentioning Britvic has a habit of hiking its dividends every year, indicating confidence on the part of management.BiffaThird on my list of income stocks worth considering if the market sell-off continues is sustainable waste management firm Biffa (LSE: BIFF).In last week’s trading update, the company simply said it was monitoring the coronavirus outbreak but that there had “not been any meaningful impact” to business so far. That’s exactly what you’d expect from a company operating in a space where demand should remain stable. It went on to say that trading had been in line with expectations with growth seen in a number of its divisions. A highlight was the “strong performance” in its recycling business as a result of increased demand for recycled plastics. Aside from its defensive qualities, Biffa looks a decent buy for the income it provides. Following a few years of hikes to the payout, the company is predicted by analysts to return 7.71p per share in the 2019/20 financial year (ending 29 March). That’s a yield of 3%.  Our 6 ‘Best Buys Now’ Shares I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. 3 top dividend stocks I’d buy if the coronavirus sell-off gets worse Paul Summers owns shares of IG Group Holdings. The Motley Fool UK owns shares of and has recommended Britvic. 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 “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. 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. Paul Summers | Wednesday, 11th March, 2020 | More on: BIFF BVIC IGG last_img read more

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