Investors can earn returns in stocks through share-price appreciation or dividend payments, and one way to find dividend-paying stocks with price upside is by reviewing Wall Street analyst ratings on stocks and comparing them to their dividend yields.
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.
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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.
Dividend stocks have a track record of outperforming non-dividend paying stocks, and investors can generate $100 in monthly dividend income by investing in AGNC Investment, PennantPark Floating Rate Capital, and Realty Income.
Investing in Realty Income Corporation (NYSE:O) may not be rational from a fundamental level due to its relatively unattractive dividend yield and the potential damage caused by a higher interest rate environment.
Realty Income's shares have hit a one-year low, but the REIT's strong operating performance, dividend coverage, and diverse real estate portfolio make it an attractive investment with a 5.6% dividend yield.
High-quality dividend stocks, which have been market favorites in recent years, are currently not receiving much respect but now may be a good time to buy.
Visa Inc., a powerful dividend growth stock, has consistently raised its dividend by 17% annually and boasts 14 consecutive years of uninterrupted dividend growth, making it a standout player in the world of dividend growth stocks. Additionally, Visa's financial strength, robust performance, and attractive valuation position it as a promising investment opportunity for long-term investors.
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.
The resurgence of interest in dividend-paying stocks has led to significant growth in dividend-focused ETFs, with over $300 billion in assets under management globally as of July 2023, and investors must choose the dividend index that aligns best with their investment objectives, such as the FTSE Global Target Dividend Index Series.
High-dividend stocks can provide retirees with a source of income and potential appreciation, and historically, higher-yielding stocks have offered better returns than dividend growth and the broader market.
The Southern Company, Oneok, and Public Storage are exceptional dividend stocks that have consistently paid stable dividends and increased their payouts, making them highly attractive for investors looking for reliable and growing income.
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.
Investors may want to consider increasing exposure to dividend stocks, such as those in the S&P Dividend Aristocrats, as rising long-term interest rates have the potential to push the broad stock market down again.
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.
Amid the unpredictability of the stock market, investors can find stability and passive income through the steady dividends offered by certain dividend stocks, such as Verizon Communications Inc. and Energy Transfer LP, which both boast yields of over 8% and have been recommended by financial giant Morgan Stanley.
Investment platform The Motley Fool suggests four dividend stocks to consider adding to your portfolio in October for stability and long-term investment upside.
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.
Cognex, Estée Lauder, and Brookfield Infrastructure are three dividend stocks worth buying for investors seeking both income and growth potential, with Cognex set to generate long-term value, Estée Lauder leveraging its strategic acquisitions and wide audience, and Brookfield Infrastructure offering consistent cash flows and attractive growth opportunities.
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.
S&P 500 dividend per share is expected to grow by 5% this year, providing appeal to investors amid turbulence in the market, although high-dividend yielding stocks have underperformed and may not necessarily be high quality or safe, according to Piper Sandler analysts.
The yield on the 10-year Treasury is now equivalent to the highest dividends paid by S&P 500 firms, leading to investors pulling cash from dividend stock funds at a faster pace than the overall stock market. The narrowing difference between dividend yields and the 10-year Treasury yield suggests that bonds are becoming a viable competitor to stocks.
The current bear market presents great buying opportunities for dividend stocks, with many high-quality companies offering attractive discounts and starting dividend yields.
