24/7 Wall St. Insights
- Investors can expect 50 basis points of cuts before 2024 is over.
- Dividend stocks are an in-demand asset class as interest rates drop.
- 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.
Dividend stocks are a favorite among investors for good reason. They provide a steady income stream 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.
For example, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%. That is, 10% for the increase in stock price and 3% for the dividends paid.
We decided to screen our 24/7 Wall St. blue-chip dividend stock database, looking for companies that yield 5% or more but are always forgotten by growth and income investors. Four stocks hit our screen, and once our readers realize they also have forgotten about them, it might be time to take a closer look.
Franklin Resources
Better known as Franklin Templeton, this is one of the world’s largest investment managers.
This company is a mutual fund powerhouse that pays a safe and secure 6.24% dividend. Franklin Resources Inc. (NYSE: BEN | BEN Price Prediction) 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.
HSBC
One of the world’s largest banking and financial services institutions.
Based in England, this company is the current version of the old Hong Kong Shanghai Banking Corporation and pays investors a rich 6.76% dividend. HSBC Holdings PLC (NYSE: HSBC) provides banking and financial services worldwide.
The company operates through three segments:
- Wealth and Personal Banking
- Commercial Banking
- Global Banking and Markets
- The Wealth and Personal Banking segment offers:
- Retail banking and wealth products
- Current and savings accounts
- Mortgages and personal loans
- Credit and debit cards
- Local and international payment services
- Wealth management services comprising insurance and investment products
- Global asset management services, investment management, and private wealth solutions
This segment serves personal banking and high-net-worth individuals.
The Commercial Banking segment provides:
- Credit and lending
- Treasury management
- Payment
- Cash management
- Commercial Insurance
- Investment services
- Commercial cards
- International trade and receivables finance services
- Foreign exchange products
- Capital raising services on debt and equity markets
- Advisory services.
It serves small and medium-sized enterprises, mid-market enterprises, and corporates.
The Global Banking and Markets segment offers financing, advisory, transaction services, credit, rates, foreign exchange, equities, money markets, securities services, and principal investment activities.
Universal Health Realty Income Trust
A real estate investment trust specializing in health care and human service-related facilities.
This stock makes a ton of sense now, yielding 6.58% and offering investors the ability to invest in health care. Universal Health Realty Income Trust (NYSE: UHT) is a real estate investment trust that invests in healthcare and human service-related facilities, including acute care hospitals, behavioral healthcare hospitals, specialty facilities, medical/office buildings, free-standing emergency departments, and childcare centers.
The company has investments or commitments in seventy-six properties in twenty-one states.
Universal Health Realty has the second-longest streak of annual dividend increases in the REIT industry. The company has raised its annual dividend payment for 37 consecutive years, and its 0.7% hike in June puts it on pace to mark the 38th consecutive year with an increase in 2024.
Whirlpool
In 2023, this appliance maker reported approximately $19 billion in annual sales.
With massive institutional ownership and backing, the potential for new home sales to increase is a big positive for this company, which pays a dependable 6.66% dividend. Whirlpool Corp. (NYSE: WHR) manufactures and markets home appliances and related products.
It operates through four segments:
- North America
- Europe
- Middle East and Africa
- Latin America and Asia
The company’s principal products include:
- Refrigerators, freezers, ice makers, and refrigerator water filters
- Laundry appliances and related laundry accessories
- Cooking and other small domestic appliances
- Dishwasher-associated appliances and accessories, as well as mixers
Whirlpool markets and distributes its products primarily under these brand names:
- Whirlpool
- Maytag
- KitchenAid
- JennAir
- Amana
- Roper
- Admiral
- Affresh
- Gladiator
- Speed Queen
- Hotpoint
- Bauknecht
- Indesit
- Ignis
- Laden
- Privileg
- KIC
- Consul
- Brastemp
- Across
- Ariston
- Diqua
- Royalstar
Goldman Sachs Top Analysts Love 5 Buy-Rated High-Yield Dividend Stocks
Top Gaining Stocks
Top Losing Stocks