24/7 Insights
- Dividend stocks offer investors the opportunity to increase investment total return.
- Dividend stocks offer passive income streams.
- Check out this free report: Access 2 legendary, high-yield dividend stocks Wall Street loves.
Dividend stocks are trusted among investors. They offer a secure income stream and a promising path for total return. Total return, a comprehensive measure of investment performance, includes interest, capital gains, dividends, and distributions realized over time.
Let’s take a closer look at 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.
We screened our 24/7 Wall St. dividend stock database for solid stocks priced under $30 that offer solid and dependable dividends and have outstanding upside potential. Five companies are timely ideas to add to portfolios; all are rated Buy at top firms on Wall Street.
Why do we cover dividend stocks?
Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Coterra Energy
This company was formed by the closing of the $17 billion merger of Cabot Oil & Gas and Cimarex Energy in 2021 and pays a solid 3.10% dividend. Coterra Energy Inc. (NASDAQ: CTRA) is an independent oil and gas company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States.
Coterra Energy strategically holds properties in key locations. It has approximately:
- 186,000 net acres in the Marcellus Shale, a dry gas window play in Susquehanna County, Pennsylvania
- 296,000 net acres in the Permian Basin, a significant oil-producing region in west Texas and southeast New Mexico
- 182,000 net acres in the Anadarko Basin, a prolific oil and gas basin located in Oklahoma
It also operates natural gas and saltwater gathering and disposal systems in Texas.
The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities.
Enterprise Products Partners
This company is one of the largest publicly traded energy partnerships and pays a 6.95% dividend. Enterprise Products Partners L.P. (NYSE: EPD) provides various midstream energy services, including:
- Gathering
- Processing
- Transporting and storing natural gas, natural gas liquids (NGL) fractionation
- Import and export terminalling
- Offshore production platform services
The company has four reportable business segments:
- Natural Gas Pipelines and Services
- NGL Pipelines and Services
- Petrochemical Services
- Crude Oil Pipelines and Services
One of the reasons many analysts like the stock might be its distribution coverage ratio. The company’s distribution coverage ratio is well above 1x, making it relatively less risky in the MLP sector.
Frontline
While off the radar of most investors, this shipping company could explode higher, and it pays a massive 12.62% dividend. Frontline PLC (NYSE: FRO) engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers.
In a press release earlier this year, the company announced that it would sell its five oldest VLCCs (very large crude carriers) built in 2009 and 2010 for an aggregate net sale price of $290 million.
The vessels are expected to be delivered to the new owner during the first quarter of 2024. After repaying existing debt on the vessels, the transaction is expected to generate approximately $207 million in net cash proceeds.
The company expects to record a gain in 2024 of roughly $68 million to $76 million, depending on the delivery date of each vessel to the new owner. According to industry standards, the sale is subject to certain closing conditions.
Following the transaction and the completion of the delivery of all 24 VLCCs acquired from Euronav NV, Frontline’s fleet will consist of:
- 84 vessels comprised of 41 VLCCs
- 25 Suezmax tankers
- 18 LR2/Aframax tankers
KeyCorp
This top regional player is very cheap at current levels for investors looking at financials and pays a big 6.01% dividend. KeyCorp (NYSE: KEY) operates as the holding company for KeyBank National Association, which provides various retail and commercial banking products and services in the United States.
It operates in two segments:
- Consumer Bank
- Commercial Bank
The company offers various deposits, investment products, and services to individuals and small and medium-sized businesses including:
- Commercial leasing
- Investment management
- Consumer finance
- Personal finance and financial wellness
- Student loan refinancing
- Mortgage and home equity lending
- Credit card
- Treasury
- Business advisory
- Wealth management
- Asset management
- Cash management
- Portfolio management
- Trust and related services
It also provides a suite of banking and capital market products, such as:
- Syndicated finance
- Debt and equity capital market products
- Commercial payments
- Equipment finance
- Commercial mortgage banking
- Derivatives,
- Foreign exchange
- Financial advisory, and public finance
- Commercial mortgage loans to consumer, energy, healthcare, industrial, public sector, real estate, and technology sectors for middle market clients.
In addition, the company offers community development financing, securities underwriting, brokerage, and investment banking services.
Six Magnificent Dividend Stocks to Buy Now
VICI Properties
This is the top pick across Wall Street in the net lease group and is ideal for more conservative investors looking for gaming exposure and a solid 5.48% dividend. VICI Properties Inc. (NYSE: VICI) is an S&P 500 experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas, three of the most iconic entertainment facilities on the Las Vegas Strip.
VICI Properties owns 93 experiential assets across a geographically diverse portfolio consisting of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio comprises approximately 127 million square feet and features approximately 60,300 hotel rooms and over 500 restaurants, bars, nightclubs, and sportsbooks.
Its properties are occupied by industry-leading gaming, leisure and hospitality operators under long-term, triple-net lease agreements. VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including:
- Bowlero
- Cabot
- Canyon Ranch
- Chelsea Piers
- Great Wolf Resorts
- Homefield
- Kalahari Resorts
VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.
∴
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
