Here’s a Safe Dividend Stock That’s Still Yielding 4.9%

This has been a bad year for dividend stocks. Many companies have slashed or suspended their dividends as a result of the COVID-19 pandemic. However, the ones that haven’t done so are ones that investors should keep a close eye on, as it could suggest they’re a bit more resilient and recession-proof.

A good example of such a stock is Shaw Communications Inc (TSX:SJR.B)(NYSE:SJR). The telecom giant in Canada still pays its shareholders a solid dividend. Its monthly payout of $0.09875 has remained intact and with a stock price of around $24, that means investors today can earn about 4.9% from the company’s reoccurring payments.

Shaw hasn’t raised its dividend payments in recent years but with a near-5% dividend, investors are still getting a terrific return even if the stock stays flat. Year to date, shares of Shaw have dipped 8% but in the past month they’ve been rallying along with the markets and are up around 7%.

Over the long term, Shaw’s still a great investment to hold in your portfolio. Buying it on the dip can be an excellent way to secure a better yield as well as a lower price that may result in some capital gains in the future.

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The telecom sector is one that is a bit more stable during the pandemic. And that’s because not only can the employees work remotely, but customers still need Internet and cell phone service to stay connected.

At a price-to-earnings ratio of 17 and a price-to-book multiple of around two, Shaw’s a relatively cheap buy that can also net you a great dividend.