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 total return on an investment or a 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.
While the Magnificent Seven, especially Nvidia Inc. (NASDAQ: NVDA | NVDA Price Prediction), have driven the S&P 500 and the Nasdaq to recent all-time highs, most are wildly overbought. By comparison, most of the venerable index still trades at reasonable levels.
The S&P 500 finished the first quarter of 2024 up 10.2%, so we decided to screen the dividend stocks in the S&P 500, looking for companies that could provide investors with solid passive income streams. We found six companies dividend investors should grab now. These stocks are not just bargains; they are steals, and when rates are finally lowered later this year, they could be snapped up in a heartbeat. All are rated Buy at top Wall Street firms.
Altria
Altria Group, Inc. is one of the world’s largest producers and marketers of tobacco, cigarettes, and related products.
This tobacco company offers value investors a great entry point and a rich 9.57% 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 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. Recently, the company announced it would sell 35 million of its 197 million shares through a global secondary offering.
AT&T
AT&T is the world’s fourth-largest telecommunications company in terms of revenue.
The legacy telecommunications company has been undergoing a lengthy restructuring while lowering its dividend, which still stands at 6.83%. AT&T, Inc. (NYSE: T) 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.
Boston Properties
Boston Properties, Inc. develops, redevelops, acquires, manages, and owns a portfolio of Class A properties.
This quality Real Estate giant offers size, safety, and a hefty 6.68% dividend. Boston Propeties Inc. (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets:
- Boston
- Los Angeles,
- New York
- San Francisco
- Seattle
- Washington, DC.
The fully integrated real estate company is a real estate investment trust (REIT). Including properties owned by joint ventures, the current portfolio totals 53.3 million square feet and 188 properties, including ten properties under construction/redevelopment.
Boston Properties’ portfolio includes 167 office properties, 14 retail properties (including two retail properties under construction/redevelopment), six residential properties (including one residential property under construction), and one hotel.
3M
3M Company is an American multinational company that operates in industry, worker safety, healthcare, and consumer goods.
This top company could jump with a continued economic pick-up. The shares have rallied over the last month and pay a solid 6.62% dividend. 3M Company (NYSE: MMM) is a diversified technology company worldwide.
It 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 and 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
Pfizer
Pfizer develops and produces medicines and vaccines for immunology, oncology, cardiology, endocrinology, and neurology.
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 6.48% 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
Kinder Morgan
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America.
This is one of the top energy stocks and remains a favorite across Wall Street. It pays a dependable 6.29% 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 and owns interests in/or operates oil fields and gasoline processing plants, as well as a natural oil pipeline system in West Texas. It holds and runs approximately 83,000 miles of pipelines and 144 terminals.
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