November is here, and also a week that could bring some leftover Halloween tricks instead of treats. The Federal Reserve set to raise rates by 75 basis points yet again, and the October jobs report will drop on Friday. While overall the markets were up last week, the tech-wreck and an overall sense of foreboding has many investors nervous.
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One bright spot, with big tech aside, is that many top companies that pay dividends are doing well despite the rampant inflation, supply chain issues and a host of additional headwinds. At 24/7 Wall St., we know how important dividend size, stability and growth are to growth and income investors that need a dependable stream of income.

We often have written about the opportunities that the Dividend Aristocrats offer for long-term investors. These are the companies that meet the guidelines for inclusion and have raised their dividends every year for 25 consecutive years. This year, 66 stocks made the cut and remain top picks across Wall Street. For those seeking even greater dividend dependability, many investors are drawn to the Dividend Kings. These 44 S&P 500 companies have raised their dividends for a stunning 50 years in a row.

With the market wobbling and seemingly set to head much lower, it may be time for investors to look for momentum or high-beta stocks lurking in their portfolios, especially if they are still profitable or flat, and move the capital invested in them to one of the Dividend Kings. We screened the list for companies that beat third-quarter earnings expectations and found five that look like solid picks for the rest of the quarter and 2023. While all are rated Buy on Wall Street, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Coca-Cola

This remains a top Buffet holding, as he owns a massive 400 million shares. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands. It has an incredibly strong worldwide brand, with 40% overseas sales.

The company’s portfolio features 20 billion-dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia and Del Valle. Globally, it is the number one provider of sparkling beverages, ready-to-drink coffees and juices and juice drinks.

Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy Coca-Cola beverages at a rate of more than 1.9 billion servings a day. Also remember that the company also owns 16.7% of Monster Beverage, which continues to deliver big numbers.
Coca-Cola’s earnings topped Wall Street analysts’ estimates last week at $0.69 per share against projections of $0.64. Revenue was slightly ahead of expectations as well, at $11.05 billion against $10.52 billion.

Investors receive a 2.90% dividend. Truist Financial has a Wall Street high $75 target price on Coca-Cola stock. The consensus target is $66.94, and the final trade on Monday was for $59.85 a share.
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Genuine Parts

When the going gets tough in the economy, consumers looking to save money turn to do-it-yourself, and buying and installing replacement car parts is huge. Genuine Parts Co. (NYSE: GPC) distributes automotive replacement parts, as well as industrial parts and materials.

The company distributes automotive replacement parts for hybrid and electric vehicles, trucks, sport utility vehicles, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, marine equipment and heavy-duty equipment. It offers accessory and supply items used by various automotive aftermarket customers, such as repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, industrial concerns and individuals.

Genuine Parts also distributes industrial replacement parts and related supplies, such as bearings, mechanical and electrical power transmission products, industrial automation and robotics, hoses, hydraulic and pneumatic components, industrial and safety supplies, and material handling products for original equipment manufacturer, as well as maintenance, repair and operation customers in equipment and machinery, food and beverage, forest product, primary metal, pulp and paper, mining, automotive, oil and gas, petrochemical, pharmaceutical, power generation, alternative energy, governments, transportation, ports and other industries.

In addition, the company provides various services and repairs comprising gearbox and fluid power and process pump assembly and repair, hydraulic drive shaft repair, electrical panel assembly and repair, hose and gasket manufacture and assembly, and other value-added services.

The company reported a strong quarter, with third-quarter 2022 adjusted earnings of $2.23 per share, up 18.6% year over year. The bottom-line results also beat the consensus forecast of $2.03 per share. Higher-than-expected sales and operating profits across both its segments resulted in this outperformance. Genuine Parts Company raised its fiscal year adjusted EPS outlook to $8.05 to $8.15 from $7.80 to $7.95. The consensus estimate is $7.96 for now.

Genuine Parts stock investors receive a 2.00% dividend. Argus’s $195 target price is well above the $157.22 consensus target. The stock closed on Monday at $177.86.

With a diverse product base and a very popular and solid brand, this is among the most conservative big pharmaceutical plays, and vaccine demand could spike again. Johnson & Johnson (NYSE: JNJ) researches, develops, manufactures and sells various products in the health care field worldwide.
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Its Consumer Health segment offers baby care products under the Johnson’s and Aveeno Baby brands; oral care products under the Listerine brand; skin health/beauty products under the Aveeno, Clean & Clear, Neutrogena and OGX brands; acetaminophen products under the Tylenol brand; cold, flu and allergy products under the Sudafed brand; allergy products under the Benadryl and Zyrtec brands; ibuprofen products under the Motrin IB brand; smoking cessation products under the Nicorette brand; and acid reflux products under the Pepcid brand.

This segment also provides women’s health products, such as sanitary pads and tampons under the Stayfree, Carefree, and o.b. brands; wound care products comprising adhesive bandages under the Band-Aid brand; and first aid products under the Neosporin brand.

Johnson & Johnson’s Pharmaceutical segment offers products in various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension and cardiovascular and metabolic diseases.

The Medical Devices segment provides electrophysiology products to treat cardiovascular diseases; neurovascular care products to treat hemorrhagic and ischemic stroke; orthopedics products in support of hips, knees, trauma, spine, sports and other; advanced and general surgery solutions that focus on breast aesthetics and ear, nose and throat procedures; and disposable contact lenses and ophthalmic products related to cataract and laser refractive surgery under the Acuvue brand.

Adjusted EPS for the three months ending in September were posted at $2.55, down almost 2% from the same quarter last year but seven cents ahead of the consensus forecast. Group revenues were up 1.9% to $23.8 billion, above Wall Street estimates of $23.34 billion.

Shareholders receive a 2.58% yield. Citigroup’s price target is $198, while the consensus target is $183.80. Johnson & Johnson stock closed at $173.97 on Monday.

Procter & Gamble

The company offers a very solid dividend as well as a host of recognizable products. Procter & Gamble Co. (NYSE: PG) is one of the world’s largest consumer products companies and one of the oldest in the Fortune 500. Its many brands include Pampers, Tide, Bounty, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy and Dawn.
Procter & Gamble sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores and pharmacies. The company has been very innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors years of steady growth and dividends.
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The consumer staples giant actually reported its first quarter for fiscal 2023, and both the top and bottom lines came in better than expected. EPS of $1.57 beat the $1.55 Wall Street estimate.

The dividend yield here is 2.70%. The $156 Deutsche Bank price objective compares with a $146.29 consensus target for Procter & Gamble stock. Monday’s close was at $134.67.

Stanley Black & Decker

In times when the economy is struggling, the do-it-yourself legions repair instead of replace, and this tool giant is a very solid play. Stanley Black & Decker Inc. (NYSE: SWK) engages in the tools and storage and industrial businesses in the Americas, Europe and Asia.

Its Tools & Storage segment offers professional products, including professional-grade corded and cordless electric power tools and equipment and pneumatic tools and fasteners. Its consumer products include corded and cordless electric power tools, primarily under the Black + Decker brand, as well as corded and cordless lawn and garden products and related accessories home products and hand tools, power tool accessories and storage products. This segment sells its products through retailers, distributors, dealers and a direct sales force to professional end-users, distributors, dealers, retail consumers and industrial customers in various industries.

The Industrial segment provides engineered fastening systems and products to customers in the automotive, manufacturing, electronics, construction, aerospace, oil and natural gas pipeline and other industries. It sells and rents custom pipe handling, joint welding and coating equipment for use in the construction of large and small diameter pipelines, as well as provides pipeline inspection services. It also sells hydraulic tools and performance-driven heavy equipment attachment tools and sells automatic doors to commercial customers.

Stanley Black & Decker’s $0.76 per share earnings beat Wall Street estimated projections by 2.7%.

Shareholders receive a 4.08% dividend. Stanley Black & Decker stock has a $96 target price at Barclays. The consensus target is $94.85, and shares closed on Monday at $78.49.

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These five top companies pay dependable passive income dividends, beat Wall Street earnings estimates and offer a degree of safety as they are all dominant in their respective sectors. For investors looking to buy shares, any dip should be grabbed as earnings reports are out of the way until next year.

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