24/7 Wall St. Insights

• The long stock market rally could be close to running out of steam.
• Safe high-yield dividend stocks are a smart move as we enter the fourth quarter.
• 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 two legendary, high-yield dividend stocks Wall Street loves.

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 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%).

While the stock market rally of the past two years has been a bonanza for investors, the reality is that its time may be running out. Numerous publications have pointed out that the S&P 500 is more expensive in relation to the underlying fundamentals than it was at its peak in 1929, which triggered a sell-off that ultimately kicked off the Great Depression.

Another leading indicator, the Schiller price-to-earnings ratio, which compares stock prices to the average corporate earnings of the past decade, adjusted for inflation, is higher than the peak in 1929. Only twice has it been higher than this year, during the dot-com bubble years of 1998-2001 and during the post-COVID period in 2021-2022. In addition, stocks are currently valued at 190% of U.S. GDP, and according to reports, that is twice the average since the 1970s.

We screened our 24/7 Wall St. high-yield dividend stock data, looking for the safest companies that nervous investors may want to shift to now. While interest rate cuts will likely remain measured given the recent strong jobs report, between an election, the wars in Ukraine and the Middle East, and a host of additional issues, it makes sense to be safe rather than sorry for the rest of 2024.

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.

Conagra Brands

This consumer packaged-food giant is a very safe idea that pays a stellar 4.75% dividend. Conagra Brands Inc. (NYSE: CAG) and its subsidiaries operate as a consumer packaged goods food company primarily in the United States.

The company operates through four segments:

• Grocery & Snacks
• Refrigerated & Frozen
• International
• Foodservice

The Grocery & Snacks segment primarily offers shelf-stable food products through various retail channels.

The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels.

The International segment offers food products in various temperature states through retail and food service channels outside the United States.

The food service segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other food service establishments.

The company sells its products under these well-known brands:

• Birds Eye
• Marie Callender’s
• Duncan Hines
• Healthy Choice
• Slim Jim
• Reddi-Wip
• Angie’s
• BOOMCHICKAPOP

Regions Financial

This bank continues expanding its footprint in the fast-growing 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 acquisitions 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.

VICI Properties

This is one of the top picks across Wall Street in the net lease group and is ideal for more conservative investors looking for gaming exposure and a solid 5.34% dividend. VICI Properties Inc. (NYSE: VICI) is an S&P 500 experiential real estate investment trust with one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including three iconic entertainment facilities on the Las Vegas Strip.

• Caesars Palace Las Vegas
• MGM Grand
• The Venetian Resort Las Vegas

VICI Properties owns 93 experiential assets across a geographically diverse portfolio 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.

Wendy’s

This fast-food giant continues to offer incredible value and a tasty 5.67% dividend. Wendy’s Co. (NASDAQ: WEN) operates as a quick-service restaurant company in the United States and internationally.

It operates through three segments:

• Wendy’s U.S.
• Wendy’s International
• Global Real Estate & Development

The company operates, develops, and franchises a system of quick-service restaurants specializing in hamburger sandwiches. Wendy’s is best known for its made-to-order square hamburgers, which use fresh, never-frozen beef. It also offers freshly prepared salads and other signature items like chili, baked potatoes, and the Frosty dessert.

It also owns and leases real estate properties. The company was formerly known as Wendy’s/Arby’s Group and changed its name in July 2011.

Wendy’s and its franchisees employ hundreds of thousands of people in over 7,000 restaurants worldwide, and they envision becoming the world’s most thriving and beloved restaurant brand.

Six High-Yield Dividend Stocks Every Passive Income Investor Should Own in 2024

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