Over the last 22 months, interest rates have jumped from historical lows of 0% to the highest level since 2007 at 5.5%. 30 FHA Mortgages have jumped from 2.65% in January of 2021 to the current 6.99% rate. During that period, any stock that was the least sensitive to interest rates got hammered, and the damage trail covered several sectors.
While it was a tough stretch for shareholders, 2024 could be the year many interest rate-sensitive stocks bounce back with a vengeance. While the slight possibility of one final interest rate hike still looms, many across Wall Street feel by summer, the Federal Reserve may start to lower rates.
For those seeking dividend dependability, investors may be drawn to the Dividend Kings. These are the 54 companies that have raised the dividends they pay shareholders a stunning 50 consecutive years in a row or longer.
We screened the 2024 Dividend Kings list for the seven highest-yielding stocks and listed them in order of the most significant dividends.
Altria
This maker of tobacco products offers value investors a great entry point now and a rich 9.47% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.
The company provides cigarettes primarily under the Marlboro brand;
- Cigars and pipe tobacco, principally under the Black & Mild brand
- Moist smokeless tobacco products and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- On! Oral nicotine pouches
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria owns over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer.
Leggett & Platt
While somewhat off-the-radar, this stock has almost been cut in half over the last year, offering massive upside potential and a fat 7.18% dividend. Leggett & Platt Incorporated (NYSE: LEG) designs, manufactures, and markets engineered components and products worldwide.
It operates through three segments:
- Bedding, Specialized Products
- Furniture
- Flooring & Textile Products
The company offers:
- Steel rods
- Drawn wires
- Foam chemicals and additives
- Innerspring specialty foams
- Private label finished mattresses
- Mattress foundations
- Wire forms for mattress foundations
- Adjustable beds
- Industrial sewing and quilting machines, and mattress packaging and glue drying equipment
- Machines to produce innerspring for industrial users of steel rods and wires, manufacturers of finished bedding, big box and e-commerce retailers, bedding brands and mattress retailers, department stores, and home improvement centers.
Leggett & Platt also provides:
- Mechanical and pneumatic lumbar support and massage systems for automotive seating seat suspension systems
- Motors actuators and cables
- Titanium, nickel, and stainless steel tubing
- Formed tubes, tube assemblies, and flexible joint components for fluid conveyance systems
- Engineered hydraulic cylinders to automobile OEMs and Tier 1 suppliers, aerospace OEMs and suppliers, and mobile equipment OEMs.
3M
This top company could jump with continued economic pick-up, and the shares are down big this year and pay a solid 5.57% dividend. 3M Company (NYSE: MMM) is a diversified technology company worldwide.
3M operates through four segments:
- Safety and Industrial
- Transportation and Electronics
- Health Care
- Consumer
The Safety and Industrial segment offers:
- Industrial abrasives and finishing for metalworking applications
- Auto body repair solutions
- Closure systems for personal hygiene products
- Masking and packaging materials
- Electrical products and materials for construction and maintenance
- Power distribution
- Electrical original equipment manufacturers
- Structural adhesives and tapes
- Respiratory, hearing, eye, and fall protection solutions
- Natural and color-coated mineral granules for shingles
The 3M Transportation and Electronics segment provides:
- Ceramic solutions
- Attachment tapes
- Films
- Sound and temperature management for vehicles
- Premium large-format graphic films for advertising and fleet signage
- Light management films and electronics assembly solutions
- Packaging and interconnection solutions
- Reflective signage for highway and vehicle safety
Italy, the company’s Healthcare segment offers:
- Food safety indicator solutions
- Healthcare procedure coding and reimbursement software
- Skin, wound care, and infection prevention products and solutions
- Dentistry and orthodontic solutions
- Filtration and purification systems
The Consumer segment provides:
- Consumer bandages, braces, supports, and consumer respirators
- Cleaning products for the home
- Retail abrasives
- Paint accessories
- Car care DIY products
- Picture hanging
- Consumer air quality solutions
- Stationery products
Universal Corporation
While this company’s products, like Altria’s, may not be for everyone, they have strong demand, have been in business for almost 150 years, and offer shareholders a hefty 4.90% dividend. Universal Corporation (NYSE: UVV) processes and supplies leaf tobacco and plant-based ingredients worldwide.
The company operates through two segments:
- Tobacco Operations and
- Ingredients Operations.
It is involved in procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products.
The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes and dark air-cured tobaccos principally used in the manufacture of cigars, naturally wrapped cigars and cigarillos, smokeless and pipe tobacco products.
Universal Corporation also provides value-added services, including:
- Blending
- Chemical
- Physical tobacco testing
- Service cutting for various manufacturers
- Manufacturing reconstituted leaf tobacco
- Just-in-time inventory management services
- Electronic nicotine delivery systems
- Customer smoke testing services
Northwest Natural Holding
This off-the-radar utility stock is a good choice for worried conservative investors and pays a solid 4.88% dividend. Northwest Natural Holding Company (NYSE: NWN), through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial, and transportation customers in Oregon and Southwest Washington.
The company also operates 5.7 billion cubic feet of the Mist gas storage facility contracted to other utilities and third-party marketers; offers natural gas asset management services; and operates an appliance retail center.
In addition, it engages in gas storage, water, non-regulated renewable natural gas, and other investments and activities.
The company provides natural gas service through approximately 786,000 meters in Oregon and southwest Washington and water services to about 80,000 people through about 33,000 water and wastewater connections in the Pacific Northwest and Texas.
Federal Realty Investment Trust
While real estate has slowly returned, hard assets are good in inflation, and the stock pays a rich 4.29% dividend. Federal Realty Investment Trust (NYSE: FRT) is a recognized leader in the ownership, operation, and redevelopment of high-quality retail-based properties in major coastal markets from Washington, D.C., to Boston, San Francisco, and Los Angeles. Founded in 1962,
Federal Realty’s mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply.
Its expertise includes creating urban, mixed-use neighborhoods like:
- Santana Row in San Jose, California
- Pike & Rose in North Bethesda, Maryland
- Assembly Row in Somerville, Massachusetts
Federal Realty’s 105 properties include approximately 3,000 tenants in 24 million square feet and over 2,600 residential units. Federal Realty has increased its quarterly dividends to its shareholders, which is currently 4.71% for 56 consecutive years, the longest record in the REIT industry.
Telephone and Data Systems
This top telecom company pays conservative investors a 4.08 Dividend and offers a degree of safety. Telephone and Data Systems Inc. (NYSE: TDS) provides communications services in the United States.
It operates through two segments:
- US Cellular
- TDS Telecom.
The company offers:
- Wireless solutions to consumers and business and government customers, including a suite of connected Internet of Things (IoT) solutions
- Software applications for monitoring and control, business automation/operations, communication, fleet and asset management
- Innovative water solutions, private cellular networks, and custom and end-to-end IoT solutions
- Wireless priority services and quality priority and preemption options
- Smartphones and other handsets
- Tablets
- Wearables
- Mobile hotspots
- Fixed wireless home internet and IoT devices and accessories, such as cases, screen protectors, chargers, and memory cards
- Consumer electronics, including audio, home automation, and networking products
It also provides replacement and repair services;
- Trade-In program through which it buys customers’ used equipment
- Internet connections and all-home WI-FI services
- TDS TV+, an integrated cloud television platform that offers video content and features
- Local and long-distance telephone service
- Voice-over-internet protocol and enhanced services
- Broadband, IP-based services
- Hosted voice and video collaboration services
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