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2 Undervalued Stocks With Sturdy Dividends

We think the payouts on these names are sustainable.

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Dividend-stock investors have a little more spring in their step this year than they did last year. Indeed, 2020 was a year to forget. For starters, dividend-paying stocks underperformed the broader market in 2020. Worse, as the coronavirus threatened the health of the economy, some companies shored up their liquidity by cutting or suspending their dividends, leaving investors who were relying on that income in a lurch.

This year has been a different story. The economy has bounced back, and dividend cuts are less of a threat these days. But that doesn't mean that all dividends are durable.

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