Results for: Dividend Stocks

Many investors believe that investing in tech stocks and cryptocurrencies is the key to maximizing total returns. However, a focus on dividend stocks can also lead to strong long-term returns. Dividends force management to allocate capital wisely, prioritize shareholder interests, and attract a stable investor base. These factors contribute to higher returns on invested capital, lower risk, and more stable stock prices. The Vanguard Dividend Appreciation Index ETF (VIG) is a well-diversified fund that invests in dividend-growth stocks. It offers low expenses, exposure to成長 industry, and a strong track record of dividend growth. While it has underperformed the S&P 500 in recent years, VIG is well-positioned to potentially outperform in the future, especially given the elevated valuations of many technology stocks.

The portfolio, which was started in September 2017 with an initial investment of $108,760.02, is now worth $245,539.73, a gain of 125.76%. The portfolio has generated $4,490.67 in dividends over the past 12 months, and the average yield is 1.83%. In Q1 2024, the portfolio returned 20.69%, outperforming the S&P 500 (SPY), which returned 26.19%, and the iShares S&P/TSX 60 ETF (XIU), which returned 11.87%. The portfolio is currently invested in 10 companies across 7 sectors, and the goal is to build a portfolio generating 4-5% in yield across 15 positions. The portfolio manager is considering selling Magna International (MG) and adding the proceeds to either a new Canadian stock on the wish list or to existing position.

In today’s volatile market, dividend stocks offer investors a safe haven to strengthen their portfolios. These seven companies stand out for their exceptional performance and forward-thinking initiatives:

1. Pfizer (PFE): With a massive research budget and a solid pipeline, Pfizer leads the pharmaceutical industry with a forward dividend of 6.4%. Its acquisition of Seagen and cost-saving measures position the company for continued growth.

2. AT&T (T): AT&T’s cost optimization and investments in fiber and 5G networks have led to improved profitability and a forward dividend yield of 6.8%. The company’s focus on technology and infrastructure underpins its position as a pioneer in high-speed internet and mobile connections.

3. Verizon (VZ): Verizon’s robust cash flow and customer retention strategies have resulted in a forward dividend yield of 6.9%. The company’s postpaid phone net additions have shown improvement, and its segmented go-to-market strategy strengthens customer loyalty.

4. Johnson & Johnson (JNJ): With a forward dividend yield of 3.3% and over six decades of dividend growth, Johnson & Johnson acquired Shockwave Medical and Ambrx to bolster its cardiovascular and oncology portfolios. The company’s focus on high-growth markets and targeted cancer treatments positions it for future growth.

5. Walgreens (WBA): Walgreens’ investment in micro-fulfillment facilities and expansion of Boots.com demonstrates its commitment to enhancing pharmacy operations and capturing the e-commerce opportunity. The company’s forward dividend yield is 5.5%.

6. British American Tobacco (BTI): BTI’s strategic initiatives have improved its market share in the U.S. premium segment. The company’s cost-saving measures, including £500 million in savings in 2023, enhance operational efficiency. BTI’s forward dividend yield is 10.1%.

7. Altria (MO): Altria, with a forward dividend yield of 9.2% and a long history of dividend growth, is expanding accessibility to its smoke-free products through NJOY ACE. The company’s distribution reach and competitive positioning in multi-outlet and convenience channels drive its growth.

Dividend stocks provide a reliable stream of passive income, coupled with potential share appreciation. Experts have identified several dividend-paying companies that exhibit strong financial performance, resilience, and growth potential. These include NextEra Energy (NEE), American Express (AXP), and Automatic Data Processing (ADP). These companies have a history of consistent dividend payments, steady revenue growth, and robust cash flows, making them attractive options for dividend-focused investors.

Amid market uncertainty, dividend-yielding stocks offer stability. Benzinga presents the latest analyst ratings for three high-yielding consumer staples stocks: Cal-Maine Foods (CALM), Philip Morris International (PM), and The Kraft Heinz Company (KHC). Analysts have varying opinions on these stocks, with some maintaining an ‘Equal-Weight’ rating while others suggest ‘Sell’ or ‘Overweight’ recommendations. Cal-Maine Foods has a dividend yield of 3.13%, Philip Morris International has a yield of 5.55%, and The Kraft Heinz Company yields 4.23%.