Air Lease Corp (AL), Ford Motor Company (F), Momenta Pharmaceuticals, Inc. (MNTA): The 5 Best Dividend Stocks of 2020

Page 2 of 2

Solazyme Inc (NASDAQ:SZYM)

^SPX Chart

^SPX data by YCharts

The renewable-oils manufacturer may want to invest in growth opportunities at the beginning of the next decade rather than pay a dividend to shareholders, but if production costs are minimized, there should be more than enough cash to go around. Consider that at final commercial scale (fermenters of roughly 625,000 liters in volume), Solazyme Inc (NASDAQ:SZYM) believes it can produce a metric ton of oil for as low as $1,000. Selling prices for several oil profiles in development exceed $4,000 per metric ton. Now, some oils will be costlier and less efficient to produce than others, and the company has yet to move beyond 128,000 liter tanks. But throw in an explosion of annual capacity from nil today to 125,000 metric tons by mid-2015 — and plans for an additional 325,000 metric tons in the years following — and investors have to like the potential.

Foolish bottom line
The best thing about owning the best dividend stocks of the future now is that you get to maximize the compounding effect of growth. Share prices will grow in the years before distributions, while management will look to keep investors happy after initial growth phases with solid dividends. These are just five companies I believe will be great dividend stocks in 2020, but notice the similarities. They all have great growth potential with disruptive approaches to their respective industries. Do you know of another company that could make the list? Let me know in the comments section below.

The article The 5 Best Dividend Stocks of 2020 originally appeared on Fool.com.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio or his CAPS page, or follow him on Twitter, @BlacknGoldFool, to keep up with his writing on energy, bioprocessing, and emerging technologies.The Motley Fool recommends Ford, Momenta Pharmaceuticals, and Orbital Sciences and owns shares of Ford, Momenta Pharmaceuticals, and Solazyme.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Page 2 of 2