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2 New Dividend Opportunities for 2020

Reviewing our four 2019 dividend picks, and looking ahead to new ones.

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Michael Hodel: A year ago we highlighted four dividend picks for 2019: UPS, Wells Fargo, KLA Corp, and Exxon Mobil. This time, we’ll take a look back at how those four firms have fared and offer two additional ideas for the coming year.

The performance of the four 2019 recommendations has been mixed. At the top, KLA Corp has done great, returning about 75% over the past year. Demand for semiconductor equipment has held up better in 2019 and the outlook for 2020 is pretty strong as well. While this is great news for those who’ve invested in the stock, income-focused investors have better opportunities in our view. The yield on KLA shares is now below 2% and the stock trades at a premium to our fair value estimate.

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