24/7 Wall St. Insights

• The bond market has dropped long rates to the lowest since December of 2023.
• The inversion between the two- and 10-year Treasury paper looks to be over.
• Passive income is simple: own quality dividends that pay you for doing nothing. Don’t miss out on our brand-new “7 Things I Demand in a Dividend Stock” report. It includes two A++ dividend stocks and how to spot future dividend winners that can put your returns on hyperdrive. Access 2 legendary, high-yield dividend stocks Wall Street loves.

At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the ups and downs that always accompany the stock market, the reality for many people is the need to have solid passive income streams that accompany income from employment or other avenues.

Most dividend investors aim to secure a reliable passive income stream from quality dividend stocks. Passive income is a consistent unearned income that does not require active traditional work. It’s a financial goal that can be achieved through various means, including investments, real estate, or side hustles.

We decided to screen our 24/7 Wall St. passive income research database, looking for stocks trading at $25 and below that can be included in growth and income investor’s portfolios to provide dependable income streams. Five top companies look like Passive Income Kings, and all are Buy-rated at top Wall Street firms.

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.

AT&T

The legacy telecommunications company has been undergoing a lengthy restructuring while lowering its dividend, which still stands at 5.40%. 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:

• DataVoice
• 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 these brands:

• 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.

Energy Transfer

The top master limited partnership is a safe way for investors looking for energy exposure and income, as the company pays a massive 8.04% distribution. Energy Transfer L.P. (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins.

The company is a publicly traded limited partnership with core operations that include:

• Complementary natural gas midstream
• Intrastate and interstate transportation and storage assets
• Crude oil, natural gas liquids (NGL), and refined product transportation and terminalling assets
• NGL fractionation and various acquisition and marketing assets

Energy Transfer owns and operates more than 114,000 miles of pipelines and related assets in all significant U.S.-producing regions and markets across 41 states, further solidifying its leadership position in the midstream sector.

Through its ownership of Energy Transfer Operating, L.P., the company also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco L.P. (NYSE: SUN), and the public partner interests and 39.7 million standard units of USA Compression Partners L.P. (NYSE: USAC).

Flowers Foods

Way off-the-radar and yielding a rich 4.10%, this is a defensive idea that conservative investors should love. Flowers Foods Inc. (NYSE: FLO) produces and markets packaged bakery food products in the United States.

Its principal products include fresh breads, buns, rolls, snack items, bagels, English muffins, and tortillas, as well as frozen breads and rolls under these well-known brands:

• The Nature’s Own
• Dave’s Killer Bread
• Wonder
• Canyon Bakehouse
• Mrs. Freshley’s
• Tastykake

The company distributes its products through a direct-store-delivery distribution and a warehouse delivery system, and it operates bakeries.

Its customers include:

• National and regional restaurants, institutions and foodservice distributors
• Retail in-store bakeries
• Wholesale distributors
• Mass merchandisers
• Supermarkets
• Vending outlets
• Convenience stores
• Quick-serve chains
• Food wholesalers
• Institutions,
• Dollar stores
• Vending companies, as well as public health care, military commissaries, prisons, and other governmental institutions

Regions Financial

This bank continues expanding its footprint in the South and Southeast sectors of the U.S. and pays a stellar 4.40% dividend. Regions Financial Corp. (NYSE: RF) is a financial holding company that provides banking and bank-related services to individual and corporate customers.

It operates through three segments:

• Corporate Bank
• Consumer Bank
• Wealth Management

The Corporate Bank segment offers:

• Commercial banking services, such as commercial and industrial
• Commercial real estate, and investor real estate lending
• Equipment lease financing
• Deposit products
• Securities underwriting and placement
• Loan syndication and placement
• Foreign exchange
• Derivatives
• Merger and acquisition, and other advisory services

It serves corporate, middle-market, and commercial real estate developers and investors.

The Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, consumer credit cards, and other consumer loans and deposits.

The Wealth Management segment offers credit-related products, retirement and savings solutions, trust and investment management, asset management, and estate planning services to individuals, businesses, governmental institutions, and non-profit entities.

It also provides investment and insurance products, low-income housing tax credit corporate fund syndication services, and other specialty financing services.

Starwood Property Trust

This high-yielding company, run by real estate legend Barry Sternlicht, offers big-time total return potential and a 9.22% dividend. Starwood Property Trust Inc. (NYSE: STWD) operates as a real estate investment trust (REIT) in the United States, Europe, and Australia.

It operates through four segments:

• Commercial and Residential Lending
• Infrastructure Lending
• Property
• Investing and Servicing segments

The Commercial and Residential Lending segment:

• Originates, acquires, finances, and manages commercial first mortgages
• Non-agency residential mortgages
• Subordinated mortgages
• Mezzanine loans
• Preferred Equity
• Commercial mortgage-backed securities (CMBS)
• Residential mortgage-backed securities
• The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments.

The Property segment primarily develops and manages equity interests in stabilized commercial real estate properties, such as multifamily properties and commercial properties subject to net leases, that are held for investment.

The Investing and Servicing segment:

• Manages and works out problem assets
• Acquires and contains unrated, investment grade, and non-investment grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions
• Originates conduit loans to sell these loans into securitization transactions and acquire commercial real estate assets, including properties from CMBS trusts

UGI

This dividend champion offers a fat 6% dividend and some stellar total return potential. UGI Corp. (NYSE: UGI), together with its subsidiaries, distributes, stores, transports, and markets energy products and related services in the United States and internationally.

The company operates through four segments:

• AmeriGas Propane
• UGI International
• Midstream & Marketing
• UGI Utilities

Its extensive network of 1,400 propane distribution locations distributes propane to approximately 1.3 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers.

The company distributes liquefied petroleum gases (LPG) to:

• Residential
• Commercial
• Industrial
• Agricultural
• Wholesale
• Automobile fuel customers
• Provides logistics, storage, and other services to third-party LPG distributors

In addition, it retails natural gas, liquid fuels, and electricity to approximately 12,400 residential, commercial, and industrial customers at 42,000 locations.

Further, the company distributes natural gas to approximately 677,000 customers in eastern and central Pennsylvania counties through its distribution system of approximately 12,500 miles of gas mains and supplies electricity to approximately 62,600 customers in northeastern Pennsylvania through 2,560 miles of lines and 14 substations.

It also operates electric generation facilities, which include:

• Coal-fired
• Landfill gas-fueled
• Solar-powered
• Natural gas-fueled facilities
• Natural gas liquefaction, storage, and vaporization facility
• Propane storage and propane-air mixing stations
• Rail transshipment terminals

It manages natural gas pipeline and storage contracts; develops, owns, and operates pipelines, gathering infrastructure, and gas storage facilities.

Five Blue Chip Dividend Giants Passive Income Investors Can Always Count On

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