Dividends are set to make a comeback in 2021. Here are some attractive payers

Share
Traders work on the floor of the New York Stock Exchange.
NYSE

(This story is for CNBC Pro subscribers only).

Growth names soared during the pandemic and then handed the ball recently to cyclical bets on an economic recovery. But a forgotten class of stocks could come back in favor next year as corporate balance sheets are repaired: dividend stocks.

Payouts are already starting to pick up. After a year where dividend cuts and suspensions were common in corporate America, there were 29 dividend increases and one initiation in November, compared with one cut and no suspensions, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.

That pattern is set to continue in 2021. Silverblatt said in a note to clients that the amount paid out in dividends next year could surpass 2019, before companies were even thinking about the pandemic.

Correction: The report was for 2021. An earlier version had the wrong year.

More In Pro Insight

CNBC ProMike Santoli's market notes: Growth stocks bounce, an unusual ETF for the upturn, the bull case
CNBC ProThese 'return to normalcy' stocks have further to run on an effective vaccine, Jefferies says
CNBC ProMike Santoli’s market notes: Traders scramble to chase the vaccine-fueled rally