Investors love dividend stocks because they provide dependable income and a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation.
At 247 Wall St., we always remind our readers about the impact total return has on portfolios because it is one of the best ways to improve the chances of overall investing success. Again, total return is the combined increase in a stock’s value plus dividends.
For example, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%—10% for the increase in stock price and 3% for the dividends paid.
We screened our 24/7 Wall Street blue chip dividend stock equity database, looking for the best quality stocks that pay a solid 7% or higher dividend. Five companies have hit our screens; two leading foreign car companies are among the picks. All five of the stocks have Buy ratings across Wall Street.
Enbridge
Enbridge owns and operates pipelines throughout Canada and the United States.This is an off-the-radar idea based in Canada, which looks poised to break out to new highs soon and pays a solid 7.49% dividend. Enbridge Inc. (NYSE: ENB) operates as an energy infrastructure company.
The company operates through five segments:
- Liquids Pipelines
- Gas Transmission and Midstream
- Gas Distribution and Storage
- Renewable Power Generation
- Energy Services
The Liquids Pipelines segment operates pipelines and related terminals in Canada and the United States to transport various grades of crude oil and other liquid hydrocarbons.
The Gas Transmission and Midstream segment invests in natural gas pipelines and gathering and processing facilities in Canada and the United States.
The Gas Distribution and Storage segment is involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario and natural gas distribution and energy transportation activities in Quebec.
The Renewable Power Generation segment operates power-generating assets, such as wind, solar, geothermal, waste heat recovery facilities, and transmission assets in North America and Europe.
The energy services segment provides energy marketing services to refiners, producers, and other customers, as well as physical commodity marketing and logistical services in Canada and the United States.
Kohl’s
This top retailer got walloped back in early October and still offers an excellent entry point now, yielding 7.21%. Kohl’s Corp. (NYSE: KSS) operates department stores in the United States.
It provides private label, exclusive, and national brand apparel, footwear, accessories, beauty, and home products to children, men, and women customers. The company also sells its products online at Kohls.com and through mobile devices.
The company provides its products primarily under the brand names of:
- Croft & Barrow
- Jumping Beans
- SO
- Sonoma Goods for Life
- Food Network,
- LC Lauren Conrad
- Nine West
- Simply Vera
- Vera Wang.
Kohl’s partners with Amazon, where customers can return items through the retailer. Some feel the deal should be expanded with a full partnership or even Amazon buying Kohl’s.
Mercedes-Benz Group AG
The German luxury car giant pays investors a 7.16% dividend. Mercedes-Benz Group AG (OTC: MBGAF) is an automotive company in Germany and internationally.
It operates through three segments:
- Mercedes-Benz Cars,
- Mercedes-Benz Vans
- Mercedes-Benz Mobility
The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, and G-Class brands, as well as related spare parts and accessories.
It also provides:
- Financing
- Leasing
- Car subscription and rental
- Fleet management
- Insurance Brokerage
- Mobility services
- Digital services for charging and payment
The company, which was formerly known as Daimler AG, changed its name to Mercedes-Benz Group AG in February 2022. Founded in 1886, Mercedes-Benz Group AG has its headquarters in Stuttgart, Germany.
Highwoods Properties
Trading just below a 52-week high, Highwood Properties, Inc. (NYSE: HIW) is a publicly traded, fully integrated office real estate investment trust that pays a stellar 7.71% dividend and has huge upside potential. The stock is very close to breaking out.
The company owns, develops, acquires, leases, and manages properties primarily in the best business districts (BBDs) of:
- Atlanta
- Charlotte
- Dallas
- Nashville
- Orlando
- Raleigh
- Richmond
- Tampa
Highwoods Properties’ biggest customers include the U.S. Government, financial services firms, industrial supply retailers, and healthcare companies.
Volkswagen AG
Volkswagen AG (OTC: VWAPY) is a bargain at 4.4 times trailing earnings and offers a 7.22% dividend. At current trading levels, this auto giant is a huge steal.
Volkswagen AG manufactures and sells automobiles in:
- Germany
- Europe
- North America
- South America
- Asia-Pacific
- internationally
The company operates through four segments:
- Passenger Cars and Light Commercial Vehicles
- Commercial Vehicles
- Power Engineering
- Financial Services
The Passenger Cars and Light Commercial Vehicles segment develops vehicles, engines, and vehicle software; produces and sells passenger cars and light commercial vehicles and related parts; and offers motorcycles.
The Commercial Vehicles segment develops, produces, and sells trucks and buses and offers parts and related services.
The Power Engineering segment offers large-bore diesel engines, turbomachinery, and propulsion components.
The Financial Services segment provides dealership and customer financing, leasing, direct banking and insurance, fleet management, and mobility services.
It sells products under these brands:
- Volkswagen Passenger Cars
- Koda
- SEAT/CUPRA
- Volkswagen Commercial Vehicles
- Audi
- Lamborghini
- Bentley
- Ducati
- Porsche
- Scania
- MAN
- Volkswagen Truck & Bus
- Navistar commercial vehicles
- Bugatti brands
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