Walgreens Boots Alliance and its predecessor company have paid a dividend in 359 straight quarters, or more than 89 years. Air Products, which dates back to 1940, now is a slimmer company that has returned to focusing on its legacy industrial gases business. But it hasn’t taken its eye off the dividend, which it has improved on an annual basis for 41 years in a row.
- The stock is trading below its 52-week high, and it’s outperformed the S&P 500 by 4.7% over the last decade.
- One of the main reasons is the steady stream of income they provide.
- Dividend yield is one tool to use to screen for dividend stocks that are potentially worth owning.
- However, if the stock is riskier, you might want to buy less of it and put more of your money toward safer choices.
- All of this points towards the fact that the company is undervalued.
So while a high yield is appealing, other factors must be considered when deciding whether a particular company is a good stock to invest in. ConocoPhillips is one of the world’s largest independent oil and gas exploration and production companies, with upstream operations in 17 countries. In 2022, the company reported record production and returned a whopping $15 billion in capital to its shareholders. Incredibly, that $15 billion in capital returns still only represented about 53% of ConocoPhillips’ $28.5 billion in cash from operations. In addition, the company retired $3.3 billion in debt in 2022 and plans to continue toward its $5 billion debt reduction target. ConocoPhillips has also guided for an additional $11 billion in capital returns in 2023.
Cory has been a professional trader since 2005, and holds a Chartered Market Technician (CMT) designation. He has been widely published, writing for Technical Analysis of Stock & Commodities magazine, Investopedia, Benzinga, and others. He runs TradeThatSwing.com, has authored several trading courses and books, coaches individual clients, and regularly trades stocks, currencies, and ETFs.
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These moves are supported by Citizens’ strong capital position and solid top-line growth momentum. Perhaps most important for income investors, CVX has more than three decades of uninterrupted dividend growth https://g-markets.net/helpful-articles/engulfing-candlestick-pattern/ under its belt, and management has said it will protect the payout at all costs. Chevron’s last increase was announced in January 2023 with a 6% bump in the quarterly dividend to $1.51 per share.
Approximately 87% of revenue is now from C2C, 8% from Business Solutions and 5% from Other for full fiscal 2022. The company has generated $4.36 billion in revenue over its last 4 fiscal quarters. Click here to download a PDF report for just one of the 850+ income securities we cover in Sure Analysis to get an idea of the level of work that goes into finding compelling income investments for our audience. Here, we are using ‘best’ in terms of highest yields with reasonable and better dividend safety. Additionally, a maximum of three stocks are allowed for any single market sector to ensure diversification. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada.
Investing in Dividend Stocks
Demand for Colagte’s products tends to remain stable in both good economic times and bad, and that drives the free cash flow need to maintain its dividend growth streak. Power- and hand-toolmaker Stanley Black & Decker (SWK) has improved its cash distribution annually for more than half a century, including a 1.3% increase to 80 cents per share quarterly in July 2022. Real estate investment trusts such as Federal Realty Investment Trust (FRT) are required to pay out at least 90% of their taxable earnings as dividends in exchange for certain tax benefits. Thus, REITs are well known as some of the best dividend stocks you can buy. Not too long ago, investors fretted over a long-term slide in sales of carbonated beverages, but that turned out not to be a secular trend after all. Indeed, Grand View Research forecasts the global market for fizzy drinks to produce a compound annual growth rate of 4.7% through 2028.
The company was founded back in 1936 and has a current Market Capitalization of $37.02B. In the following, I would like to specify why I have chosen the metrics mentioned above in order to select my top 10 high Dividend Yield stocks of the month. He’s also written for Esquire magazine’s Dubious Achievements Awards. Johnson & Johnson (JNJ), founded in 1886 and public since 1944, operates in several different segments of the healthcare industry. In addition to pharmaceuticals, it also manufactures medical devices.
Dividend Stock Picks
Although the economy ebbs and flows, demand for products such as toilet paper, toothpaste and soap tends to remain stable. That hardly makes P&G completely recession-proof, but it does make the grade as one of the best dividend stocks because it’s an equity income machine. The P&C insurer most recently lifted its quarterly payout in January 2023, by 8.7% to 75 cents per share. That sort of flexibility helps the company maintain the free cash flow required to keep the dividend increases coming.
Rather, this consumer staples giant is all about defense and dividends. And, indeed, the dependable and defensive nature of Clorox’s business has allowed the company to raise its annual dividend for more than four decades. The most recent hike came in July 2022 with a 2% bump to $1.18 per share per quarter. Like the rest of the medical device industry, CAH faced challenges during the pandemic as patients put off elective surgeries.
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Practically speaking, its products help optimize everything from offshore oil production to electronics polishing to commercial laundries. West Pharmaceutical Services (WST) was added to the Dividend Aristocrats in January 2021 in recognition of its long history of annual increases. Consumer-staples company Church & Dwight (CHD) might not ring a bell with many retail investors, but they’re certainly familiar with many of its wares. Arm & Hammer, OxiClean and Waterpik are just a few examples among dozens of its household brands.
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In May, the company reported earnings with revenue that increased more than fivefold from the prior year. And similar to Frontline, Nordic American Tankers has posted growing profits related to the Chinese economy’s reopening. WSM stock today trades for just 7.4 times trailing twelve-month earnings. While earnings are expected to decline this year, they could start to pick up again in 2024. In the meantime, the home furnishings retailer’s current rate of payout (2.97% forward yield) is likely sustainable. As per analysts, both CFG and ARCC have the potential to generate strong returns based on solid fundamentals.
First Step of the Selection Process: Analysis of the Financial Ratios
The most recent hike came in February 2022 – a 3.8% bump to the quarterly payout to 27.25 cents per share. The stock’s three-year annualized total return beats the broader market’s performance by a wide margin. SJM has outperformed the S&P 500 on an its all-time total return basis, as well. In a decade’s time, the dividend yield on your original cost basis will have grown to 7.8%.
ADP’s most recent dividend increase came in November 2022 when it lifted the quarterly payout 20% to $1.25 per share. The company’s 10-year compound annual dividend growth rate stands at more than 10%. With ample free cash flow and a reasonable payout ratio, MKC has been able to generate a five-year compound annual dividend growth rate of 9%. Dividend stocks are also less volatile than other asset classes because of their solid financials and proven track record of success. Investors who look for stable sources of income may be more likely to hold onto their dividend-paying stocks during market volatility, which can help stabilize the stock price and reduce volatility. Historical analysis has shown that dividend stocks have generated high returns with lower volatility over the years.
Best Recession-Proof Dividend Stocks for a 2023 Downturn
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