24/7 Wall St. Insights

• Baby boomers are overweighted to stocks and stock mutual funds.
• Growth stocks and risky assets could be crushed in a panic sell-off.
• Sit back and let dividends do the heavy lifting for a simple, steady path to maintain serious wealth. 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.

With the youngest baby boomers (Americans born between 1946 and 1964) turning 60 this year and approaching retirement age, it is becoming increasingly important to focus on ultra-safe dividend stocks that will supply big passive income either in or out of designated retirement accounts like IRAs.

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). This long-term growth potential is more than double the annualized return for non-payers (3.95%), offering a promising outlook for your retirement portfolio.

Many baby boomers have experienced something over the past 40 years that most Gen X and millennial investors have not: full-out stock sell-off disasters. The years 1987, 2000, and 2008 all saw huge losses that sometimes took years to recoup. Baby boomers don’t have the luxury of time should that scenario come around again, and with the stock market screaming to all-time highs, it may be time to do serious portfolio revisions.

At 24/7 Wall St., we recommended a conservative approach for baby boomers, especially older group members. We focused on blue-chip stock market stalwarts who have paid reliable dividends for decades. These will provide dependable passive income and some growth potential that helps to level the playing field with the ongoing sticky inflation. Five iconic companies are among our top ideas.

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.

Bristol-Myers Squibb

This top company remains a solid pharmaceutical stock to own long-term, offering an outstanding entry point and a massive 4.65% dividend. Bristol-Myers Squibb Co. (NYSE: BMY) discovers, develops, licenses, manufactures, and markets pharmaceutical products worldwide.

The company offers products in:

• Hematology
• Oncology
• Cardiovascular
• Immunology therapeutic classes

Bristol-Myers Squibb products include:

• Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma
• Opdivo for anti-cancer indications
• Eliquis, an oral inhibitor indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE
• Orencia for adult patients with active RA and psoriatic arthritis, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis

The company also provides:

• Sprycel for the treatment of patients with unresectable or metastatic melanoma
• Abraxane, a protein-bound chemotherapy product
• Implicit for the treatment of multiple myeloma
• Reblozyl for the treatment of anemia in adult patients with beta-thalassemia

Chevron

This integrated giant is a safer way for investors looking to position themselves in the energy sector. It pays a rich 4.45% dividend. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide through its subsidiaries.

The company operates in two segments:

• Upstream
• Downstream

The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines
• Transportation, storage, and marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum product
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and advanced products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

Chevron announced last year that it has entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion.

Conagra Brands

This consumer packaged food giant is a very safe idea that pays a stellar 4.31% dividend. Conagra Brands Inc. (NYSE: CAG) and its subsidiaries operate primarily in the United States as a consumer packaged goods company.

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

Dominion Energy

Many of the Wall Street firms we cover are still positive on utilities despite the sharp move higher this year, and this company pays a strong 4.65% dividend. Dominion Energy Inc. (NYSE: D) operates through four segments:

• Dominion Energy Virginia
• Gas Distribution
• Dominion Energy South Carolina
• Contracted Assets

The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to residential, commercial, industrial, and governmental customers in Virginia and North Carolina.

The Gas Distribution segment engages in:

• Regulated natural gas gathering
• Transportation
• Distribution and sales activities
• Distributes nonregulated renewable natural gas

This segment serves residential, commercial, and industrial customers.

The Dominion Energy South Carolina segment generates, transmits, and distributes electricity and natural gas to residential, commercial, and industrial customers in South Carolina.

The company’s portfolio of assets included approximately:

• 30.2 gigawatts of electric generating capacity
• 10,500 miles of electric transmission lines
• 85,600 miles of electric distribution lines
• 94,200 miles of gas distribution lines

Dominion serves approximately 7 million customers

Philip Morris International

This company has continued to grow its global market share and pays a fat 4.45% divided. Philip Morris International Inc. (NYSE: PM) is one of the largest international cigarette producers, with a share of 28% of the global cigarette/heated tobacco market.

Key combustible brands include:

• Marlboro
• Parliament
• L&M

The company is commercializing IQOS, a heat-not-burn product, in over 40 markets, which could drive earnings in the future. Most on Wall Street believe Philip Morris International offers superior underlying growth prospects, both near-term and long-term.

The share price has been strong lately as investors have factored in the growth potential of its reduced-risk products. All sales are outside the United States.

Four Unstoppable 6% Yielding Passive Income Dividend Stocks Are October Bargains

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.