Skip to Content
US Videos

Dividend Picks for 2021

We spot opportunities in consumer staples, utilities, and energy.

Mentioned: , , , ,

Mike Hodel: Since we first started this dividend stock video series at the start of 2019, we've highlighted stocks across a variety of sectors, including tech, financials, energy, and telecom. But we haven't looked at two traditional sources of dividend ideas, consumer staples and utilities. This time around, we will rectify those omissions with two new dividend ideas and then review a handful of past ideas that we still think are attractive.

Among consumer staples, Kellogg (K) is currently one of our analyst favorites, trading at a 25% discount to our fair value estimate and it provides a nearly 4% dividend yield. While perhaps best known for its long-standing breakfast cereals, the firm has spent the past several years remaking its product lineup. On-trend snack items now account for around half of total sales, with cereal only around 20%. Recent acquisitions like RXBAR provide both solid growth potential and give Kellogg avenues to respond as consumers' tastes change in the future.

Michael Hodel does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.