Dividend investors often face a choice between high-yield stocks that offer more immediate income and low-yield stocks with faster dividend growth, but finding stocks that offer both can be challenging, with only a few rare "dividend unicorns" meeting these criteria, such as Arbor Realty Trust, Clearway Energy, NextEra Energy Partners, and VICI Properties.
### Summary
Wall Street analysts recommend dividend stocks as a defensive move against potential economic downturns, highlighting Brookfield Renewable Partners and Diamondback Energy as appealing options with promising outlooks.
Certain stocks, such as Abbott Laboratories, Johnson & Johnson, and Coca-Cola, possess strong brands, diverse portfolios, and reliable dividends, making them excellent investments regardless of market conditions.
Verizon, Medtronic, Hasbro, Dell, and Walmart are highlighted as attractive dividend stocks by Wall Street analysts, offering investors potential income and long-term returns.
Dividend-paying stocks, particularly dividend growth stocks like Brookfield Renewable and Enbridge, have consistently outperformed non-dividend payers, offering above-average returns and low risk due to their stable cash flows and long-term contracts.
In this article, the author mentions several stocks including:
1. Credit Suisse X-Links Crude Oil Shares Covered Call ETN (USOI)
2. Via Renewables preferred shares (VIASP)
3. NXG NextGen Infrastructure Income fund (NXG)
4. OFS Credit Company, Inc. (OCCI)
The author does not explicitly give a recommendation to buy, hold, or sell these stocks. However, they mention that they have a 5% position in USOI and do not plan to increase their holding unless oil prices dip below $80 again.
The author's core thesis is to hold high-yielding securities that offer regular monthly or quarterly dividends to grow their future income stream. They mention that they are accumulating wealth in their investment portfolio and reinvesting dividends to compound their income.
The key information and data in the article include the current TTM yield of USOI at about 27%, the high yield provided by VIASP (approximately 26% at the time of the article), the doubled dividend of NXG NextGen Infrastructure Income fund, and the high yield and potential price appreciation of OFS Credit Company, Inc.
In this article, the author highlights two investment opportunities for income investors - BGR, a closed-end fund focused on the energy sector with a 6% yield, and PFFA, an actively managed preferred stock ETF with a 10% yield - both of which provide strong income potential in the current market conditions.
Three dividend stocks worth considering now are American Electric Power (AEP), Dominion Energy (D), and RTX, as they offer steady dividend payments, lower volatility, and attractive yields, making them suitable choices for passive income and capital preservation during a bear market.
Three stable dividend stocks that can be solid investments for retirement are Bristol Myers Squibb, Apple, and Verizon Communications, with Bristol Myers Squibb offering a high yield and a diverse business, Apple having potential for future dividend increases, and Verizon Communications having the highest yield and a track record of increasing dividends.
Kenvue, Enbridge, and Ares Capital are three companies that offer bountiful cash dividends to investors and are solid choices for those seeking passive income.
Investing in dividend stocks has historically provided higher returns than stocks that don't pay dividends, and three high-yield stocks with sustained payouts that can generate $500 in annual dividend income from a $5,400 investment include AT&T, PennantPark Floating Rate Capital, and Innovative Industrial Properties.
Summary: Morgan Stanley recommends investors turn to dividend-paying stocks, as they have historically outperformed non-dividend stocks during market downturns. They have identified 26 dividend stocks that could see shares rise up to 85% in the coming months.
Dividend stocks are a good option for investors seeking stable income or a hedge against inflation, but it's important to choose stocks with above-market dividend yields and strong dividend growth rates for optimal capital appreciation and income generation.
Dividend-paying stocks, such as Exxon Mobil, Coterra Energy, Brookfield Infrastructure Partners, American Electric Power, and Darden Restaurants, are being recommended as attractive options for investors due to their strong earnings, cash flows, and dividend growth.
Verizon Communications, Cisco Systems, and AbbVie are three cheap stocks that pay dividends, making them attractive options for investors looking to maximize potential returns. Verizon's robust telecom business and projected growth, Cisco's profitability and recent acquisition, and AbbVie's undervalued position and promising assets make them potentially lucrative investments.
Investors may be overlooking the potential of dividend stocks due to the current high yields on cash and bonds, but long-term investors have an opportunity to benefit from growth and income with quality dividend stocks that have the potential to raise their dividend payouts over time.
Investing in ultra-high-yield financial stocks such as AGNC Investment, PennantPark Floating Rate Capital, and U.S. Bancorp can provide investors with a reliable and substantial stream of dividend income.
Investors looking for passive income without relying on stock prices should consider dividend stocks such as Kinder Morgan, 3M, and Clearway Energy, which offer high dividend yields of 7%, 6.8%, and 5.3% respectively.
Contrarian income investors are finding opportunities to "lock in" bigger dividend yields by investing in stock-focused closed-end funds, with many of these income plays paying Treasury-doubling 10% yields now, as consumer spending remains strong and interest rates remain manageable.
Buying dividend stocks, such as AT&T, Alliance Resource Partners, and Annaly Capital Management, can provide a safe and high-yield investment strategy for generating annual dividend income.
Stocks are currently on the defensive, but this temporary setback provides income-seeking investors with an opportunity to consider three dividend stocks - KeyCorp, Unilever, and BlackRock - that have resilient businesses and steady revenue growth.
Investor sentiment is uncertain and volatile, leading to confusion among investors and a need for caution; billionaire investor Leon Cooperman predicts a downturn in the S&P 500 and suggests dividend stocks as a stable investment option, highlighting Energy Transfer and Arbor Realty Trust as high-yield dividend stocks that he trusts.
