5 Dividend Stocks to Consider for 2021

Stocks are trading below GF Value yet outperformed markets in 2020

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Dec 30, 2020
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According to the All-in-one Screener, a Premium feature of GuruFocus, five stocks with high financial strength and good dividend yields that have outperformed the Standard & Poor's 500 Index in 2020 are Medifast Inc. (MED, Financial), Weis Markets Inc. (WMK, Financial), Nu Skin Enterprises Inc. (NUS, Financial), Big Lots Inc. (BIG, Financial) and SpartinNash Co. (SPTN, Financial).

As people around the world continue grappling with surging Covid-19 cases, investors may seek opportunities in stocks with the strength to weather the coronavirus storm and are trading below the GF Value measure. GuruFocus' own valuation method considers a company's historical price multiples and makes internal adjustments based on past performance and estimated future growth. The stocks discussed have outperformed the S&P 500 benchmark in the past year and have dividend yields of at least 2%.

Medifast

Shares of Medifast traded around $194.15, approximately 7% below the current GF Value of $207.82 and outperforming the S&P 500 benchmark over the past year by over 64%. The stock's dividend yield of 2.32% outperforms more than half of global competitors.

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The Baltimore-based company produces, distributes and sells products concerning weight loss, weight management and healthy living. GuruFocus ranks Medifast's profitability 9 out of 10 on several positive investing signs, which include a 3.5-star business predictability rank, a high Piotroski F-score of 7 and an operating margin that has increased approximately 6% per year on average over the past five years and is outperforming over 75% of global competitors.

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Gurus with large holdings in Medifast include Pioneer Investments (Trades, Portfolio) and Jim Simons (Trades, Portfolio)' Renaissance Technologies.

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Weis Markets

Shares of Weis Markets traded around $48.08, approximately 1% below the current GF Value of $48.71 and outperforming the S&P 500 benchmark over the past year by approximately 5.82%. The stock's dividend yield of 2.59% outperforms approximately 64.8% of global competitors.

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The Sunbury, Pennsylvania-based company operates stores that retail food and pharmacy products. GuruFocus ranks the company's financial strength 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8 and a strong Altman Z-score of 5.

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Nu Skin

Shares of Nu Skin traded around $54.27, approximately 1% below the current GF Value of $54.78 and outperforming the S&P 500 benchmark over the past year by 18.96%. The stock's dividend yield of 2.76% outperforms over 71% of global competitors.

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GuruFocus ranks the Provo, Utah-based health and beauty company's financial strength 6 out of 10: Even though debt-to-equity ratios underperform more than half of global competitors, Nu Skin has a strong Altman Z-score of 4.96.

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Big Lots

Shares of Big Lots traded around $44.43, approximately 1% from the current GF Value of $44.95 and outperforming the S&P 500 benchmark over the past year by approximately 44%. The stock's dividend yield of 2.7% outperforms approximately 67% of global competitors.

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GuruFocus ranks the Columbus, Ohio-based discount retailer's financial strength 6 out of 10 and profitability 8 out of 10 on several positive investing signs, which include a strong Altman Z-score of 3.7, a 3.5-star business predictability rank and a return on assets that outperforms over 98% of global competitors.

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SpartinNash

Shares of SpartinNash traded around $17.28, approximately 25% below the GF Value of $23.07 and outperforming the S&P 500 benchmark over the past year by approximately 10.44%. The stock's dividend yield of 4.48% outperforms approximately 89% of global competitors.

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GuruFocus ranks the Grand Rapids, Michigan-based grocery retailer's financial strength 6 out of 10: Even though debt ratios underperform over 60% of global competitors, SpartinNash has a high Piotroski F-score of 7 and and strong Altman Z-score of 4.6.

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Disclosure: No positions.

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