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 is a comprehensive measure of investment performance that encompasses interest, capital gains, dividends, and distributions realized over time.
Here at 247 Wall St., we consistently emphasize the power of total return to our readers. This strategy can significantly boost your overall investing success. Total return is the combined increase in a stock’s value and dividends. 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.
The S&P 500 is up a stunning 27% this year, but much of that enormous gain has been driven by the Magnificent 7 stocks in the venerable index. We decided to screen the highest-yielding quality stocks in the index that can deliver solid and dependable dividends and have a good chance of solid 2025 price appreciation. Three looked very enticing, and all are rated Buy at the top Wall Street firms we cover
Why do we cover S&P 500 dividend stocks?
Investing in quality large-cap dividend stocks from the S&P 500 can provide regular income through dividends from established and financially stable companies. These stocks offer lower volatility and the potential for capital appreciation.
Crown Castle International
This S&P 500 member is the nation’s largest provider of shared communications infrastructure.
This top cell tower company offers incredible growth and income possibilities with a 6.45% dividend. Crown Castle International Corp. (NYSE: CCI | CCI Price Prediction) is one of the largest U.S. wireless tower companies, with over 40,000 towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every primary U.S. market.
The company’s core business is leasing space on its wireless towers, primarily to wireless carriers, government agencies, and broadband data providers.
This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology, and wireless service – bringing information, ideas, and innovations to the people and businesses that need them.
Crown Castle is one of the best stocks in the sector for more conservative investors. Its high yield distribution and low volatility make it a good holding for accounts seeking growth, income, and less risk.
Citigroup has a Buy rating on the shares with a $128 target price.
LyondellBasell
LyondellBasell is a global leader in developing and supplying materials that enable packaging, health, and transportation solutions.
This blue-chip chemical giant offers a very dependable 6.15% dividend. LyondellBasell Industries N.V. (NYSE: LYB) operates as a chemical company in:
- The United States
- Germany
- Mexico
- Italy
- Poland
- France
- Japan
- China
- the Netherlands
- And elsewhere
The company operates in six segments:
- Olefins and Polyolefins-Americas
- Olefins and Polyolefins-Europe, Asia, International
- Intermediates and Derivatives
- Advanced Polymer Solutions
- Refining
- Technology
It produces and markets olefins and co-products, polyethylene and polypropylene, propylene oxide and derivatives, oxyfuels and related products, and intermediate chemicals, such as styrene monomer, acetyls, ethylene oxide, and ethylene glycol.
In addition, the company produces and markets compounding and solutions, including:
- Polypropylene compounds
- Engineered plastics, masterbatches
- Engineered composites, colors, and powders
- Advanced polymers, including catalloy and polybutene-1
- Refines heavy, high-sulfur crude oil, other crude oils, and refined products, including gasoline and distillates
- Further, it develops and licenses chemical and polyolefin process technologies; manufactures and sells polyolefin catalysts; and serves food packaging, home furnishings, automotive components, and paints and coatings applications
Wells Fargo has an Overweight rating with a giant $105 target price.
Walgreens Boots Alliance
Walgreens is an integrated health care, pharmacy, and retail leader serving millions of customers and patients daily.
This huge drugstore chain is paying a gigantic 9.62% dividend, which could get cut as the company is going through a massive reorganization and closing 1200 stores. There were recent rumors that the company would be taken private, and even if the dividend were cut in half, it would remain at almost 5%. Walgreens Boots Alliance Inc. (NASDAQ: WBA) is a pharmacy-led health and beauty retail company with three segments:
- Retail Pharmacy USA
- Retail Pharmacy International
- Pharmaceutical Wholesale
The Retail Pharmacy USA segment sells prescription drugs and various retail products, including health, wellness, beauty, personal care, consumables, and general merchandise, through its retail drugstores.
It also provides specialty pharmacy services and mail services. This segment operates nearly 10,000 retail stores under the Walgreens and Duane Reade brands in the United States and six specialty pharmacies.
The Walgreens Retail Pharmacy International segment is a testament to its diverse product offerings. It sells prescription drugs, health and wellness products, beauty products, personal care products, and other consumer products through its pharmacy-led health and beauty stores and optical practices.
The International segment has operations in:
- The United Kingdom
- Thailand
- Norway
- The Republic of Ireland
- The Netherlands
- Mexico
- Chile
For now, the company also operates 550 optical practices, including 165 on a franchise basis.
The Pharmaceutical Wholesale segment wholesales and distributes specialty and generic pharmaceuticals, health and beauty products, and home healthcare supplies and equipment and provides related services to pharmacies and other healthcare providers.
TD Cowen has a Buy rating and a $16 target price.
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