With the first quarter half over and the major indices higher for 2024, many investors think a significant correction could be coming. After a tremendous 2023 and the solid start to this year, the odds are improving that some severe selling could be a reality.
One good tactic now would be to sell some of the big technology stocks that have led the charge higher and move to dividend-paying blue chips, especially those that could be poised to lift their already big payouts.
We screened our 24/7 Wall St. dividend stock database, looking for companies likely to do just that, and based on history, five could be ready to boost the payouts to shareholders in 2024.
Bristol-Myers Squibb
This top company remains a solid pharmaceutical stock to own long-term, offering an outstanding entry point and a massive 4.93% dividend. Bristol-Myers Squibb Company (NYSE: BMY) discovers, develops, licenses, manufactures, and markets pharmaceutical products worldwide.
The company offers products in:
- Hematology
- Oncology
- Cardiovascular
- Immunology therapeutic
Bristol-Myers Squibb products include:
- Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma
- Opdivo for anti-cancer indications
- Eliquis, an oral inhibitor indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE
- Orencia for adult patients with active RA and psoriatic arthritis, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis
The company also provides:
- Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia
- Yervoy for the treatment of patients with unresectable or metastatic melanoma
- Abraxane, a protein-bound chemotherapy product
- Implicit for the treatment of multiple myeloma
- Reblozyl for the treatment of anemia in adult patients with beta-thalassemia
Comerica
Based in Dallas, this fast-growing banking center giant pays a substantial 5.70% dividend. Comerica, Inc. (NYSE: CMA) provides various financial products and services.
The company operates through four segments:
- Commercial Bank,
- Retail Bank,
- Wealth Management
- Finance
The Commercial Bank segment offers various products and services, including:
- Commercial loans and lines of credit
- Deposits
- Cash management
- Capital market products
- International trade finance
- Letters of credit
- Foreign exchange management services
- Loan syndication services
- Payment and card services for small and middle market businesses, multinational corporations, and governmental entities.
The Retail Bank segment provides personal financial services, such as:
- Consumer lending
- Consumer deposit gathering
- Mortgage loan origination
- Various consumer products that include deposit accounts, installment loans, credit cards, student loans, home equity lines of credit, and residential mortgage loans, as well as commercial products and services to micro-businesses
The Wealth Management segment offers products and services comprising:
- Fiduciary
- Private banking
- Retirement
- Investment management and advisory
- Investment banking and brokerage services
- Annuity products
- Life, disability, and long-term care insurance products.
The Finance segment engages in the securities portfolio, and asset and liability management activities.
The bank operates in:
- Texas
- California
- Michigan
- Arizona
- Florida
- Canada
- Mexico
International Business Machines
This blue chip giant is still offering investors a very solid entry point and a rich 3.61% dividend . International Business Machines (NYSE:IBM) is a leading provider of enterprise solutions, offering a broad portfolio of IT hardware, business and IT services, and a full suite of software solutions. The company integrates its hardware products with its software and services offerings in order to provide high value solutions.
IBM comprises five major segments:
- Cognitive Solutions
- Global Business Services
- Technology Services & Cloud Platforms
- Systems
- Global Financing
The company posted a very solid fourth quarter, as the cloud proved to be big in the earnings reports as did Red Hat, the software giant the firm bought in 2019. Red Hat’s open hybrid cloud technologies are now paired with the unmatched scale and depth of IBM’s innovation and industry expertise, and sales leadership in more than 175 countries.
Kinder Morgan
This is one of the top energy stocks and remains a favorite across Wall Street that pays a dependable 6.82% dividend . Kinder Morgan, Inc. (NYSE: KMI) operates as an energy infrastructure company in North America.
The company operates through four segments:
- Natural Gas Pipelines,
- Products Pipelines
- Terminals
- CO2
Natural Gas Pipelines segment:
- Owns and operates interstate and intrastate natural gas pipeline, and underground storage systems
- Natural gas gathering systems and natural gas processing and treating facilities
- Natural gas liquids fractionation facilities and transportation systems
- Liquefied natural gas liquefaction and storage facilities
The Products Pipelines segment owns and operates refined petroleum products, and crude oil and condensate pipelines; and associated product terminals and petrole OKEpipeline transmix facilities.
The Terminals segment owns and/or operates liquids and bulk terminals that stores and handles various commodities, including gasoline, diesel fuel, chemicals, ethanol, metals, and petroleum coke; and owns tankers.
Lastly the CO2 segment produces, transports, and markets CO2 to recover and produce crude oil from mature oil fields; and owns interests in/or operates oil fields and gasoline processing plants, as well as operates a crude oil pipeline system in West Texas. It owns and operates approximately 83,000 miles of pipelines and 144 terminals.
Philip Morris International
This company has continued to grow its global market share and pays a fat 5.83% divided. Philip Morris International Inc. (NYSE: PM) is one of the largest international cigarette producers, with a share of 28% of the international cigarette/heated tobacco market.
Key combustible brands include:
- Marlboro
- Parliament
- L&M
The company is commercializing IQOS, a heat-not-burn product, in over 40 markets, which could drive earnings in the years to come. Most on Wall Street believe Philip Morris International offers superior underlying growth prospects, both near-term and long-term.
The share price has been weak of late as some on Wall Stereet have questioned the growth potential of its reduced-risk products. 100% of the sales are outside of the United States, and investors have an incredible entry point for this cash-flow giant.
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