Investors love dividend stocks because they provide dependable income and give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the actual investment or portfolio return consists of dividend income and stock appreciation.
One of the reasons Warren Buffett has been a successful investor for decades was his steadfast refusal to buy stocks that he didn’t understand the business or the business model. He remains an ardent opponent of Bitcoin and cryptocurrency, as he can’t see any value in them.
Buffett also feels the same about gold, although it is used for jewelry, as a store of value-priced in dollars, and in industrial applications. We decided to screen our 24/7 Wall St. dividend stock research database for companies that pay big and dependable dividends and have a business everyone can understand. Six top companies ranked, all Strong Buy rated across Wall Street.
Bank of America
Banks and conservative investors welcomed 18 months of interest rate increases, and this company pays a solid 2.9% dividend. Bank of America Corporation (NYSE: BAC | BAC Price Prediction) is a ubiquitous presence in the United States, providing various banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, corporations, and governments in the United States and internationally and operating 5,100 banking centers, 16,300 ATMs, call centers, online and mobile banking platforms.
Bank of America has expanded into several new US markets, with scale globally positioning them ideally to benefit from accelerating loan growth over the next two years.
Moreover, unlike smaller peers, scale allows the bank to substantially increase investment over the next few years without notably jeopardizing returns, driving further market share gains.
Comcast
This top media and entertainment company remains a Wall Street favorite and pays a dependable 2.64% dividend. Comcast Corporation (NASDAQ: CMCSA) is the largest US provider of cable services, with over 22 million primary and nearly 27 million broadband subscribers. Through its acquisition of Sky, Comcast now has direct customer relationships with 53 million subscribers.
Comcast has a foothold in the European market (UK, Germany, and Italy) and its US operations.
Comcast also owns:
- NBCU, which includes NBC TV Networks
- Telemundo,
- MSNBC
- USA
- SyFy
- Bravo
- E!
- CNBC
- Universal Films
- Universal Theme Parks
Comcast has invested in technology to build an advanced network that delivers the fastest broadband speeds and brings customers personalized video, communications, and home management offerings.
Exxon Mobil
This mega-cap energy leader trades just above a 52-week low, offering investors a reliable 3.74% dividend. Exxon Mobil Corporation (NYSE: XOM) explores and produces crude oil and natural gas in the United States and internationally.
Exxon Mobil operates through:
- Upstream
- Energy
- Chemical
- Specialty Products segments
The Upstream segment explores and produces crude oil and natural gas
The Energy Products segment offers fuels, aromatics, catalysts, and licensing services
The Chemical Products segment manufactures and markets:
- Petrochemicals, including olefins
- Polyolefins
- Intermediates.
The Specialty Products segment offers performance products, including lubricants, basestocks, waxes, synthetics, elastomers, and resins.
Exxon Mobil is also involved in the manufacturing, trade, transporting, and selling of crude oil, natural gas, petroleum products, petrochemicals, and other specialty products; and pursuit of lower-emission business opportunities, including carbon capture and storage, hydrogen, and lower-emission fuels.
McDonald’s
The legacy fast-food heavyweight is a good idea when the economy goes up or down and pays a solid 2.29% dividend. McDonald’s Corporation (NYSE: MCD) operates and franchises McDonald’s restaurants in the United States and internationally.
The company’s restaurants offer:
- Hamburgers and cheeseburgers
- Chicken sandwiches and nuggets
- Wraps
- Fries
- Salads
- Oatmeal
- Shakes
- Desserts
- Sundaes
- Soft serve cones
- Bakery items
- Soft drinks, coffee, and beverages
- Biscuit and bagel sandwiches, breakfast burritos, hotcakes, and other sandwiches
The company operates a stunning 40,275 McDonald’s locations worldwide as of early 2023.
Globally, McDonald’s serves over 69 million people daily. McDonald’s operates in 118 countries and territories.
PepsiCo
This top consumer staples stock will supply the goods for sporting event tailgates and parties and pay a rich 2.96% dividend. PepsiCo, Inc. (NYSE: PEP) is a worldwide food and beverage company.
Its Frito-Lay North America segment offers:
- Lays and Ruffles potato chips
- Doritos
- Tostitos, and Santitas tortilla chips
- Cheetos cheese-flavored snacks
- Branded dips
- Fritos corn chips
The company’s Quaker Foods North America segment provides
- Quaker oatmeal
- Grits
- Rice cakes
- Natural granola and oat squares
- Pearl Milling mixes and syrups
- Quaker Chewy granola bars
- Cap’n Crunch cereal
- Life cereal
- Rice-A-Roni side dishes
Pepsico’s North America Beverages segment offers:
- Beverage concentrates
- Fountain syrups
- Pepsi
- Gatorade
- Mountain Dew
- Diet Pepsi
- Aquafina
- Diet Mountain Dew
- Tropicana Pure Premium
- Sierra Mist
- Mug brands
- Ready-to-drink tea, coffee, and juices.
Target
This company remains a solid and safe retail total return play while still paying a 3.16% dividend. Target Corp. (NYSE: TGT) is a general merchandise retailer in the United States.
The company offers
- Apparel for women, men, boys, girls, toddlers, infants, and newborns
- Jewelry, accessories, and shoes
- Beauty and personal care
- Baby gear
- Paper products
- Pet supplies
Target also provides:
- Dry grocery
- Dairy
- Frozen food
- Beverages
- Candy
- Snacks
- Deli
- Bakery
- Meat and food service
- Electronics, which includes video game hardware and software
- Toys
- Sporting goods and luggage
- Furniture
- Lighting
- Storage
- Kitchenware
- Small appliances
- Home décor
- bed and bath,
- Home improvement
- School/office supplies
- Greeting cards
- Party supplies
- Seasonal merchandise
In addition, the company sells merchandise through periodic design and creative partnerships, shop-in-shop experiences, and in-store amenities. Further, it sells its products through stores and digital channels, including Target.com.
The company suffered a “Bud Light” moment this year after disastrous merchandising of LBGTQ products that struck a nerve with many shoppers. While not as bad as the beer giants’ problem, it still proved to be a huge negative that has seemingly subsided some.
There is nothing complex about any of these top companies. They all have straightforward business models that are easily explained and understood. In addition, all have a lengthy track record of success and pay solid and dependable dividends.
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