24/7 Wall St. Insights

• Quality dividend stocks will be in favor as rates trend lower.
• The stock market has already priced in the coming interest rate cuts.
• Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “7 Things I Demand in a Dividend Stock,” plus get our two best dividend stocks to own today. 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 of passive income 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.

In simpler terms, it is the sum of income and stock appreciation. Dividend stocks can boost investment success by delivering regular income and capital appreciation.

We screened the S&P 500 stocks, looking for companies that were outstanding buys and are trading in front of the ex-dividend date. The ex-dividend date, or ex-date, is the first day new shareholders of a company’s stock are not eligible to receive the next dividend payment. Investors who buy stock on or after the ex-dividend date will not receive the next dividend payment. However, you will receive the dividend if you buy the stock before the date.

The ex-dividend date is one business day before the record date. For example, if a company declares a dividend on March 3 with a record date of Monday, April 11, the ex-dividend date would be Friday, April 8, because it’s one business day before the record date.

We found five of the top S&P 500 companies that will go ex-dividend after September 27th; investors looking to own these stocks can add them to conservative growth and income portfolios and garner dividends as a welcome gift. These top stocks are passive income kings, and at least one will pay shareholders monthly instead of quarterly. In addition, all are rated Buy at top Wall Street firms.

Why do we cover dividend stocks?

Dividend stocks provide investors with a reliable source of passive income. This dependable feature of passive income, which can generate revenue without the earner’s continuous active effort, makes dividend stocks a beautiful financial strategy for those looking to diversify their income streams or achieve financial independence.

BXP

This quality Real Estate giant, formerly known as Boston Properties, offers size, safety, and a hefty 4.76% dividend and goes ex-dividend on 9/30. BXP 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, D.C.

Including properties owned by joint ventures, BXP’s portfolio totals 53.5 million square feet and 187 properties, including 11 properties under construction/redevelopment.

BXP’s properties include 165 office properties, 14 retail properties (including two under construction/redevelopment), seven residential properties (including two under construction), and one hotel.

The company is well-known for its in-house building management expertise and responsiveness to clients’ needs.

BXP has a superior track record of developing premium central business district (CBD) office buildings, successful mixed-use complexes, suburban office centers, and build-to-suit projects for diverse creditworthy clients.

Franklin Resources

This company is a mutual fund powerhouse that pays a safe and secure 5.94% dividend which will be ex-dividend on 9/30. Franklin Resources Inc. (NYSE: BEN) is among the most prominent global money managers. The firm markets mutual funds and institutional separate accounts under the Franklin, Templeton, and Mutual Series brands. At times, 50% of its sales are from outside the United States, an advantage given the maturing U.S. market.

Franklin Resources offers its products and services under the brands of:

• Franklin
• Templeton
• Franklin Mutual Series
• Franklin Bissett
• Fiduciary Trust
• Darby
• Balanced Equity Management
• K2
• LibertyShares
• Edinburgh Partners

The 2023-2024 bull market has proven to be a solid tailwind for the company. While withdrawals from baby boomers may be a concern, the path forward looks solid.

Host Hotels & Resorts

This stock will go ex-dividend on 9/30, and investors will grab a rich 4.32% dividend. Host Hotels & Resorts Inc. (NASDAQ: HST) is an S&P 500 company, the largest lodging real estate investment trust, and one of the largest owners of luxury and upper-upscale hotels.

The company owns 76 properties in the United States and five internationally, totaling approximately 43,400 rooms. It also holds non-controlling interests in seven domestic and one international joint venture. A disciplined approach to capital allocation and aggressive asset management guides the company.

Host Hotels & Resorts partners with premium brands such as:

• Marriott
• Ritz-Carlton
• Westin
• Sheraton
• W
• St. Regis
• The Luxury Collection
• Hyatt
• Fairmont
• 1 Hotels
• Hilton
• Four Seasons
• Swissôtel
• ibis
• Novotel

Realty Income

This is an ideal stock for growth and income investors looking for a safer contrarian idea for the rest of 2024. It pays a whopping 5.21% dividend, which will be ex-dividend on 10/01. Realty Income Corp. (NYSE: O) is an S&P 500 company that provides stockholders with dependable monthly income.

The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 15,540 real estate properties owned under long-term lease agreements with commercial tenants.

The company has declared 644 consecutive common stock monthly dividends throughout its 55-year operating history and increased the dividend 123 times since Realty Income’s public listing in 1994. It is a top real estate member of the S&P 500 Dividend Aristocrats index.

U.S. Bancorp

This super-regional financial pays a dependable 4.30% dividend and will go ex on 9/30. U.S. Bancorp (NYSE: USB) is a financial services holding company that provides various financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States.

It operates through four segments:

• Wealth, Corporate, Commercial, and Institutional Banking
• Consumer and Business Banking
• Payment Services
• Treasury and Corporate Support

The company offers:

• Depository services,  including checking accounts, savings accounts, time certificate contracts
• Lending services, such as traditional credit products and credit card services
• Lease financing
• Import/export trade
• Asset-backed lending
• Agricultural Finance

It also provides ancillary services to corporate and governmental entity customers, comprising capital markets, treasury management, and receivable lockbox collection services.

In addition, U.S. Bancorp offers asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations.

It also provides investment and insurance products to its customers, principally within its domestic markets, and fund administration services to mutual and other funds. Additionally, the company provides corporate and purchasing cards and corporate trust services.

Five Magnificent Dividend Champions Are Passive Income September Bargains

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