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- Cooling inflation could set up dividend stocks for a solid second half of 2024.
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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 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 (1973-2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
At 24/7 Wall St., we consistently emphasize the potential of total return to our readers, as it is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return is the collective increase in a stock’s value plus dividends.
We screened our 24/7 Wall St. dividend stock database for quality companies paying at least a 7% dividend and found five blue-chip bargains that look like outstanding ideas now for growth and income investors. Investors who love dividends may also enjoy this free report.
Enbridge
This company owns and operates pipelines throughout Canada and the United States.
Enbridge has extensive operations and owns and operates pipelines throughout Canada and the United States. This off-the-radar idea looks poised to break out to new highs soon and pays a solid 7.49% dividend. Enbridge Inc. (NYSE: ENB | ENB Price Prediction) 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.
Enterprise Products Partners
Enterprise Products Partners is an American midstream natural gas and crude oil pipeline company headquartered in Houston, Texas.
This company is one of the most extensive publicly traded energy partnerships and pays a 7.19% 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 reason many analysts may like the stock is its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky in the MLP sector.
Kohl’s
Kohl’s is a chain department store offering a wide selection of clothing, accessories & homewares.
This top retailer has been trending higher but still offers an outstanding entry point, yielding 8.78%. 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
Mercedes-Benz is a German luxury and commercial vehicle automotive brand established in 1926.
The German luxury car giant pays investors an 8.24% 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, 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
Highwoods Properties is a fully integrated office real estate investment trust (REIT) that owns, develops, acquires, leases, and manages properties.
Highwood Properties, Inc. (NYSE: HIW), trading just below a 52-week high, is a publicly traded, fully integrated office real estate investment trust that pays a stellar 7.71% dividend. The company has enormous upside potential, with its stock on the verge of a breakout.
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 health care companies.
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