3 Stocks To Own Under President Biden For Dividend Growth Investing

Video Length: 00:08:34

A new sheriff is in town. President Biden's regime is just now getting started. What does this mean for investors? What does this mean for our money? Well, I think you should take some comfort in knowing that high-quality dividend growth stocks have performed well under Republican presidents and Democrat presidents. That said, I do think there are some dividend growth investing stocks, possibly the best stocks to buy now, that look especially appealing with Biden in the White House.

These stock ideas are factoring in things like incoming stimulus, infrastructure spending, a tilt toward green energy, the potential for higher taxes, an aggressive vaccine rollout, and an economic recovery.

The first stock I want to talk about is Pinnacle West Capital Corporation - stock ticker (PNW). Pinnacle West recently reported $4.87 in EPS for FY 2020. That's actually higher than the $4.77 they reported in FY 2019. Business up. Stock down. That's where the opportunity lies. What's particularly exciting about a utility stock here is that they operate as pass-through entities insofar as taxes are concerned. Investors have been concerned about Biden's tax agenda. Well, if Biden raises taxes on corporations, utilities like Pinnacle West will just pass along that higher tax rate to their customers. This is a hedge against higher taxes.

The second stock I want to talk about is a healthcare company. President Biden hasn't been shy about his desire to be aggressive with purchasing vaccines and making sure supply is strong. Companies that manufacture these vaccines stand to make a nice profit, which translates into well-covered dividends for shareholders. A noteworthy idea here is Pfizer Inc. - stock ticker (PFE). The vaccine story is actually a pretty small part of the business. I think you want to own PFE stock for the long term because it's a cheap, quality play in the pharmaceutical space. The vaccine connection to Biden is just one consideration. There's also the broader healthcare agenda that Biden could have. Democrats have long aimed to get more people access to quality healthcare products and services.

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Roger Keats 1 month ago Member's comment

good read