24/7 Insights
- Despite the huge run in the Nasdaq and S&P 500 this year, dividend stocks are still reasonable.
- Blue chip dividend stocks will run when rates start to come down.
- Grab this free report now: Access 2 legendary, high-yield dividend stocks Wall Street loves.
Dividend stocks are a favorite among investors for good reason. They provide a steady income stream and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time.
Let's explain the concept of total return. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.
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 screened the 24/7 Wall St. dividend research database looking for the cream-of-the-crop, magnificent dividend stocks that investors can buy now and keep in their portfolios for years to come. These five stocks are frontrunners in their respective sectors, pay dependable dividends, and are rated Buy at almost every firm on Wall Street.
Exxon Mobil
The slow decline in oil pricesoffers investors an excellent entry point for this magnificent dividend leader, and they will gladly grab a strong 3.43% dividend. Exxon Mobil Corp. (NYSE: XOM) is the world's largest international integrated oil and gas company, exploring for and producing crude oil and natural gas in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania.Exxon Mobil alsomanufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products; and transports and sells crude oil, natural gas, and petroleum products.Top Wall Street analystsexpect the company to remain a key beneficiary in a higher oil price environment, and most remain very optimistic about the company's sharp positive inflection in capital allocation strategy,Upstream portfolioand leverage to a further demand recovery. Exxon Mobil offers greater Downstream/Chemicals exposure relative to peers.Exxon Mobilhas completed its purchase of oil shale giant Pioneer Natural Resources Company in a $59.5 billion all-stock purchase. The deal created the largest U.S. oilfield producer and guarantees a decade of low-cost production.
International Paper
This legacy paper giant is also a breakout candidate where it’s trading and pays a hefty 4.12% dividend. International Paper Co. (NYSE: IP) produces and sells renewable fiber-based packaging and pulp products in:
- North America
- Latin America
- Europe
- North Africa
It operatesthrough two segments:
- Industrial Packaging
- Global Cellulose Fibers
The companyoffers:
- Linerboard,
- Medium, whitetop, recycled liner board
- Recycled medium and saturating kraft
- Pulp for a range of applications
The company's pulpis used for diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others.It sells its productsdirectly to end users and converters, as well as through agents, resellers, and distributors.
Johnson & Johnson
With a diverse product baseand a familiar and solid brand, Johnson & Johnson (NYSE: JNJ) is among the most conservative big pharmaceutical plays, pays a rich 3.41% dividend, and trades just above a 52-week low. It is one of the top market-cap stocks in the healthcare sector and raised the dividend for shareholders last year for the 61st consecutive year.The company remains one of Wall Street'smost diversified healthcare names, with everything from medical devices to over-the-counter health items and prescription drugs.The health care giant also has one of the mostexciting pipelines of new drugs in the sector. That, combined with the solid OTC product business, makes the stock an outstanding holding for conservative accounts with a long-term investment.The company generatesa little over half of its sales in international markets, which are expected to see higher spending on healthcare over the next ten years and beyond.
McDonald’s
The legacy fast-food heavyweightis trading just above a 52-week low and is among the safest large-cap restaurant ideas, and it pays a 2.62% dividend. McDonald’s Corp. (NYSE: MCD) operates and franchises McDonald's restaurants in the United States and internationally. Ninety-five percent of McDonald's approximately 13,500 U.S. restaurants are owned and used by independent business owners.The company's restaurantsoffer:
- Hamburgers and cheeseburgers
- Chicken sandwiches and nuggets
- Fries
- Salads
- Shakes
- Frozen desserts
- Sundaes
- Soft serve cones
- Bakery items
- Soft drinks
- Coffee
- Muffins
- Sausages
- Biscuit and bagel sandwiches
- Oatmeal
- Hash browns
- Breakfast burritos
- Hotcakes
PepsiCo
This top consumer staples stockwill supply the goods for 4th of July parties, and it pays a solid 3.31% dividend. PepsiCo Inc. (NYSE: PEP) is a worldwide food and beverage company.Its Frito-Lay North America segment offers
- Lays and Ruffles potato chips
- Doritos, Tostitos, and Santitas tortilla chips
- Cheetos cheese-flavored snacks, branded dips
- Fritos corn chips
The company’s Quaker FoodsNorth America segment provides:
- Quaker oatmeal
- Grits
- Rice cakes
- Natural granola and oat squares
- Pearl Milling mixes and syrups
- Quaker Chewy granola bars
- Cap’n Crunch cereal
- Life cereal
- Rice-a-Roni side dishes
PepsiCo's North AmericaBeverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
- Pepsi
- Gatorade
- Mountain Dew
- Diet Pepsi
- Aquafina
- Diet Mountain Dew
- Tropicana Pure Premium
- Sierra Mist
- Mug
Six Dividend Kings That Offer Investors a Passive Income Home Run
Southern Company
This large-cap utility leadermakes sense for conservative accounts and pays a stellar 3.67% dividend. Southern Co. (NYSE: SO), through its subsidiaries, engages in the generation, transmission, and distribution of electricity.It operates in foursegments:
- Gas Distribution Operations
- Gas Pipeline Investments
- Wholesale Gas Services
- Gas Marketing Services
The company also:
- Constructs, acquires, owns, and manages power generation assets, including renewable energy and battery energy storage projects
- Sells electricity in the wholesale market
- Distributes natural gas in Illinois, Georgia, Virginia, and Tennessee and provides gas marketing services, wholesale gas services, and gas pipeline investment operations.
Southern Company also owns and operates:
- 30 hydroelectric generating stations
- 24 fossil fuel generating stations
- Three nuclear-generating stations
- 13 combined cycle/cogeneration stations
- 44 solar facilities
- 13 wind facilities
- One fuel cell facility
- One battery storage facility
And it constructs, operates, and maintains 75,924 miles of natural gas pipelines and 14 storage facilities with a total capacity of 157 Bcf to provide natural gas to residential, commercial, and industrial customers.The company serves approximately 8.6million electric and gas utility customers. It also provides products and services in energy efficiency and utility infrastructure.In addition,the company offers digital wireless communications and fiber optics services.∴
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