Bitcoin’s plunging again. As I type, it’s changing hands at around $8,200, extending the recent downturn that has taken the virtual currency to levels not seen since early June.
These fresh waves of weakness illustrate exactly why I consider Bitcoin to be a poor choice for investors. Since 24 September, the crypto asset fell 12% in the space of a day before it dribbled still further to current levels.
This sort of volatility makes it such a dangerous asset to buy into and, appropriately, is the very thing that is likely to cause the US Securities and Exchange Commission to continue holding off on approving a Bitcoin-backed ETF. This further delay could send prices sinking still further in October and thereafter.
Stock markets aren’t immune to wild price swings, of course, but broadly speaking, equities are far less volatile assets to park your cash in. While it’s possible that Bitcoin will continue sinking over the next month, I reckon the following dividend stocks could lift off instead.
On a roll
I’m tipping Greggs (LSE: GRG) for one to get October off to a blinder with fresh trading details slated for 1 Tuesday. The FTSE 250 firm certainly impressed last time out in July when it announced that booming demand for its new and traditional products drove underlying pre-tax profits 58% higher in the first six months to July. That result prompted Greggs to shell out a 35p per share special dividend.
Yields might not be the biggest at Greggs – these sit at 2.1% and 2.2% for 2019 and 2020 respectively. But it’s a great pick for those seeking top dividend growth in the near term and beyond. Following the meaty payout hike of last year (up more than 10%, to 35.7p per share), it’s no surprise that City analysts forecast hefty rises to 42.8p this year and to 46p next year. And of course more supplementary dividends can’t be ruled out either.
The baker’s share price has fallen around a fifth from July’s record peaks. I reckon this provides a brilliant dip buying opportunity, with those upcoming financials likely to provide a reminder of its exceptional investment appeal.
Driving ahead
Those seeking access to bigger dividend yields today might fancy buying National Express Group (LSE: NEX) instead, though.
This FTSE 250 firm, like Greggs, also has a top record of lifting payouts. It raised the interim dividend by 10% again in July, for example, and is expected by City analysts to continue hiking them over the medium term. Last year’s 14.86p per share total reward is anticipated to spike to 16.3p in 2019 and to 17.6p in 2020, figures that yield 3.8% and 4.1% respectively.
The coach operator’s also due to update the market on trading in October, with third-quarter numbers scheduled for 17 Thursday. And I’m anticipating another set of top numbers that could drive National Express share price to the stars. It certainly impressed in July when it announced better-than-expected profits (up 14%) during the first half of 2019, reflecting the improving performance of its operations across Europe and North America.