Most dividend investors seek solid passive income streams from quality dividend stocks. Passive income is a steady stream of unearned income that does not require active traditional work. Shared ideas for earning passive income include investments such as dividend stocks, bonds, and mutual funds, as well as real estate and additional income-producing side hustles. Needless to say, after a brutal and lightning-fast sell-off, dazed growth and income investors are trying to decide which path is the one of least resistance going forward. The good news is that some high-quality dividend giants are currently available at attractive prices and offering excellent entry points.
The more passive income can help cover rising costs, such as mortgages, insurance, taxes, and other expenses, the easier it is for investors to set aside money for future needs as they prepare for retirement. Dependable, recurring dividends — especially those paid monthly — are a recipe for success.
We continually screen our 24/7 Wall passive income stock research database for the best investment ideas. The recent high-impact selling has positioned some of our favorite passive income stocks in a sweet spot for investors with some dry powder to take advantage of. All are rated Buy at top Wall Street firms that we cover, and all make sense for long-term growth and income investors.
Why do we cover dividend stocks?
As we mentioned, dividend stocks offer investors a reliable source 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.
ADM
This American multinational food processing and commodities trading corporation is a solid investment for volatile markets as it offers a very reasonable entry point and a solid dividend yield. Archer Daniels Midland Co. (NYSE: ADM | ADM Price Prediction) processes oilseeds, corn, wheat, cocoa, and other agricultural commodities.
The company operates through the following segments:
- Ag Services and Oilseeds
- Carbohydrate Solutions
- Nutrition
The Ag Services and Oilseeds segment encompasses activities related to the origination, merchandising, crushing, and further processing of oilseeds, including soybeans and soft seeds such as cottonseed, sunflower seed, canola, rapeseed, and flaxseed, into vegetable oils and protein meals.
The Carbohydrate Solutions segment engages in corn wet milling and dry milling activities, converting corn into sweeteners, starches, and bioproducts.
Lastly, the Nutrition segment provides customer needs for food, beverages, health and wellness, and more.
Bristol-Myers Squibb
Bristol-Myers Squibb Co. (NYSE: BMY) is one of the world’s largest pharmaceutical companies and consistently ranks on the Fortune 500 list of the largest U.S. corporations. It remains a solid pharmaceutical stock to own in the long term, offering an outstanding entry point following the recent sell-off. Bristol-Myers Squibb discovers, develops, licenses, manufactures, and markets pharmaceutical products worldwide.
The company offers products in these therapeutic classes:
- Hematology
- Oncology
- Cardiovascular
- Immunology
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
Stanley Black & Decker
Stanley Black & Decker Inc. (NYSE: SWK) is the world’s largest tool company, with 50 manufacturing facilities in the United States and more than 100 worldwide. With the potential for the economy to slow down some, you can bet that the do-it-yourself legions will fix rather than buy new, and this legendary stock is a solid idea now. Stanley Black & Decker provides hand tools, power tools, outdoor products, and related accessories in the Americas, Europe, and Asia.
Its Tools & Outdoor segment offers professional-grade corded and cordless electric power tools and equipment, including:
- Drills
- Impact wrenches and drivers
- Grinders, saws, routers, and sanders
- Pneumatic tools and fasteners, such as nail guns, nails, staplers and staples, and concrete and masonry anchors; corded and cordless electric power tools
- Hand-held vacuums, paint tools, and cleaning appliances
- Leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels, and industrial and automotive tools
- Drill, screwdriver, router bits, abrasives, saw blades, and threading products
- Toolboxes, sawhorses, medical cabinets, and engineered storage solutions
- Electric and gas-powered lawn and garden products
This segment sells its products under these brand names:
- DeWalt
- Craftsman
- Cub Cadet
- Black+Decker
- Hustler
The company’s Industrial segment provides:
- Threaded fasteners, blind rivets and tools, blind inserts and tools
- Drawn arc weld studs and systems
- Engineered plastic and mechanical fasteners
- Self-piercing riveting systems
- Precision nut running systems
- Micro fasteners
- High-strength structural fasteners
- Axel swage, latches, heat shields, pins, couplings, fitting, and other engineered products
- Attachments used on excavators and handheld tools
This segment sells its products through a direct sales force and third-party distributors to the automotive, manufacturing, electronics, construction, aerospace, and other industries.
Starwood Property Trust
Run by real estate legend Barry Sternlicht, Starwood Capital is a well-established global investor with international investments spanning over 30 countries and is an affiliate with this high-yielding company. Starwood Property Trust Inc. (NYSE: STWD) operates as a real estate investment trust (REIT) in the United States, Europe, and Australia.
It operates through four segments:
- Commercial and Residential Lending
- Infrastructure Lending
- Property
- Investing and Servicing segments
The Commercial and Residential Lending segment:
- Originates, acquires, finances, and manages commercial first mortgages
- Non-agency residential mortgages
- Subordinated mortgages
- Mezzanine loans
- Preferred Equity
- Commercial mortgage-backed securities (CMBS)
- Residential mortgage-backed securities
The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments.
The Property segment primarily develops and manages equity interests in stabilized commercial real estate properties, including multifamily properties and commercial properties subject to net leases, which are held for investment purposes.
The Investing and Servicing segment:
- Manages and works out problem assets
- Acquires and contains unrated, investment grade, and non-investment grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions
- Originates conduit loans to sell these loans into securitization transactions and acquire commercial real estate assets, including properties from CMBS trusts
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