Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.
A recent study from the Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past half-century (1973-2022). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Most dividend investors seek solid passive income streams of quality dividend stocks. Passive income is a steady stream of unearned income that doesn’t require active traditional work. Shared ideas for earning passive income include investments, real estate, or side hustles.
We decided to screen our 24/7 Wall St. dividend stock research universe, looking for quality companies that pay at least a 6% dividend. Five stocks caught our eye as they are buy-rated at the top Wall Street firms and pay consistent and dependable 6% and, in some cases, higher dividends.
AT&T
AT&T is the world’s fourth-largest telecommunications company by revenue.
The legacy telecommunications company has been going through a lengthy restructuring while lowering the dividend, which still stands at 6.54%. AT&T, Inc. (NYSE: T | T Price Prediction) provides worldwide telecommunications, media, and technology services.
Its Communications segment offers wireless voice and data communications services.
AT&T sells through its company-owned stores, agents, and third-party retail stores:
- Handsets
- Wireless data cards
- Wireless computing devices
- Carrying cases
- Hands-free devices
AT&T also provides:
- Data
- Voice
- Security
- Cloud solutions
- Outsourcing
- Managed and professional services
- Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers.
In addition, this segment offers residential customers broadband fiber and legacy telephony voice communication services.
It markets its communications services and products under :
- AT&T
- Cricket
- AT&T PREPAID
- AT&T Fiber
The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.
British American Tobacco
This company is the largest tobacco company in the world based on net sales.
This European giant continues to print money and pays a massive 9.57% dividend.
British American Tobacco plc (NYSE: BTI) offers:
- Vapor
- Tobacco heating
- Modern oral nicotine products
- Combustible cigarettes
- Traditional oral products, such as snus and moist snuff
The company offers its products under:
- Vuse,
- Glo
- Velo
- Grizzly
- Kodiak
- Dunhill
- Kent
- Lucky Strike
- Pall Mall
- Rothmans
- Camel
- Natural American Spirit
- Newport
- Vogue
- Viceroy
- Kool
- Peter Stuyvesant
- Craven A
- State Express 555
- Shuang Xi brands
Kinder Morgan
The company specializes in owning and controlling oil and gas pipelines and terminals.
This is one of the top energy stocks and remains a favorite across Wall Street. It pays a dependable 6.41% dividend. Kinder Morgan, Inc. (NYSE: KMI) is an energy infrastructure company in North America. The company operates through Natural Gas, Products, Terminals, and CO2 segments.
The Natural Gas Pipelines segment:
- Owns and operates the 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, crude oil and condensate pipelines, associated product terminals, and petroleum OKEpipeline transmit facilities.
The Terminals segment owns and operates liquids and bulk terminals that store and handle various commodities, including:
- Gasoline
- Diesel fuel
- Chemicals
- Ethanol
- Metals
- Petroleum coke
- Owns tankers
Lastly, the CO2 segment produces, transports, and markets CO2 to recover and produce crude oil from mature oil fields, owns interests in/or operates oil fields and gasoline processing plants, and has a natural oil pipeline system in West Texas. It holds and runs approximately 83,000 miles of pipelines and 144 terminals.
Main Street Capital
Main Street Capital has helped over 200 private companies grow or transition by providing flexible private equity and debt capital solutions.
This company is a favorite across Wall Street and also offers a very solid 6.23% dividend. Main Street Capital Corporation. (NASDAQ: MAIN) is a private equity firm specializing in equity capital to lower-middle market companies.
The firm also provides debt capital to middle-market companies for:
- Acquisitions
- Management buyouts
- Growth financings
- Recapitalizations
- Refinancing
The firm seeks to partner with entrepreneurs, business owners, and management teams and generally provides “one-stop” financing alternatives within its lower middle market portfolio.
Main Street Capital typically invests in lower middle market companies with annual revenues between $10 million and $150 million.
The firm’s middle market debt investments are in businesses generally larger in size than its lower middle market portfolio companies. It also makes majority and minority equity investments.
Pfizer
The company was established in 1849 in New York by two German entrepreneurs.
This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes but has been crushed as many are not getting boosters. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide and pays a rich 6.32% dividend, which has risen yearly for the last 14 years.
The company offers medicines and vaccines in various therapeutic areas, including:
- Cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands
- Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
- Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands.
Pfizer also provides medicines and vaccines in various therapeutic areas, such as:
- Pneumococcal disease, meningococcal disease, tick-borne encephalitis
- COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
- Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
- Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands
Whirlpool
In 2023, the company reported approximately $19 billion in annual sales.
The potential for new home sales to increase is a big positive for this company, which pays a dependable 6.59% dividend. Whirlpool Corporation (NYSE: WHR) manufactures and markets home appliances and related products.
It operates through four segments:
- North America
- Europe
- Middle East and Africa
- Latin America and Asia
The company’s principal products include:
- Refrigerators, freezers, ice makers, and refrigerator water filters
- Laundry appliances and related laundry accessories
- Cooking and other small domestic appliances
- Dishwasher appliances and related accessories, as well as mixers
Whirlpool markets and distributes its products primarily under the:
- Whirlpool
- Maytag
- KitchenAid
- JennAir
- Amana
- Roper
- Admiral
- Affresh
- Gladiator
- Speed Queen
- Hotpoint
- Bauknecht
- Indesit
- Ignis
- Laden
- Privileg
- KIC
- Consul
- Brastemp
- Across
- Ariston
- Diqua
- Royalstar
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