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As concerns regarding delayed rate cuts amid looming geopolitical threats pile on, investing in dividend stocks might be the best move for investors seeking passive income. These investments not only provide a steady stream of income but also offer a cushion against market fluctuations.
With surging volatility levels, stability is a coveted asset, making established companies with solid track records particularly enticing. These industry stalwarts boast impressive track records of dividend payments coupled with resilient business models, making them attractive options for those looking to strengthen their portfolios.
Fortis
With roughly $66 billion in total assets, Fortis Inc. (NYSE:FTS) is one of North America’s most prominent regulated gas and electric utility companies. Headquartered in St John’s, Canada, Fortis joined the ranks of “Dividend King” companies in September last year, when it raised its dividend payouts for the 50th consecutive year.
The electric utility giant hiked its quarterly dividends by 4.4% to $0.59 per share, payable from the fourth quarter of 2023. Fortis currently pays $1.70 in dividends annually, yielding 4.36% on its current price. Furthermore, the company forecasts its dividends to grow at a compounded annual growth rate (CAGR) of 4-6% over the next four years. Thus, Fortis stands tall as a reliable income generator, making it a compelling dividend stock for income-focused investors.
“Our Board of Directors declared a fourth-quarter dividend representing a 4.4% increase that will mark 50 years of consecutive increases in dividends paid,” said David Hutchens, President and CEO of Fortis, “Our sustainable regulated growth strategy is focused on delivering cleaner energy that remains affordable and reliable for our customers while supporting annual dividend growth of 4-6% through 2028.”
Fortis’ next dividend payment will be on June 1, 2024, with an ex-dividend date of May 16, 2024.
Altria
Altria Group, Inc. (NYSE:MO), a tobacco industry titan, continues to allure investors with an annual dividend payout of $3.92 per share, translating to a 9.04% dividend yield.
Another Dividend King stock, Altria Group, has raised its dividends consistently 58 times over the last 54 years. The latest dividend hike came in the third quarter of 2023, with Altria raising its quarterly payouts by 4.3% to $0.94 per share.
Despite facing regulatory headwinds, Altria’s resilient business model and enduring cash flows make it a dividend powerhouse. “We made meaningful progress in pursuit of our Vision, and our highly profitable traditional tobacco businesses continued to perform well in a challenging environment,” said Billy Gifford, Altria’s Chief Executive Officer, in the latest earnings release.
Altria also increased its share repurchase program by $2.4 billion, as stated in its first-quarter earnings release, which should further bolster shareholder returns.
Altira’s next dividend will be paid to shareholders on April 30, 2024.
McDonald’s
McDonald’s Corporation (NYSE:MCD), the global fast-food behemoth, not only satisfies appetites but also tantalizes investors with its enticing dividend prospects. The company is widely regarded as a recession-proof stock, as demand for its products tends to remain uniform despite the current economic cycle.
McDonald’s, currently a Dividend Aristocrat, is currently on track to become a Dividend King stock. The company has raised its dividends consistently for 47 years since it began disbursing payouts in 1976. McDonald’s last raised its quarterly dividends by 10% to $1.67 per share in the last quarter of 2023. It pays $6.68 per share in dividends annually, yielding 2.45% on MCD’s share price.
A household name with a loyal customer base, McDonald’s stands as a compelling choice for dividend-seeking investors craving stability in their portfolios.
McDonald’s made its latest dividend payment on March 15, 2024.
Arrived
Real estate has long been a favorite among income investors. Monthly rent provides a steady stream of reliable cash flow, while rising property values provide long-term capital gains. However, the headaches of being a landlord make traditional real estate investments anything but passive. Thanks to Arrived, an investment platform backed by Amazon.com Inc. founder Jeff Bezos, virtually anyone can gain the benefits of real estate ownership without the management burdens. The platform allows retail investors to buy shares of single-family rental properties with as little as $100 while Arrived takes care of the day-to-day operations.
Property shareholders receive monthly dividends, which can be deposited into their bank account or reinvested into more properties. Arrived has paid out over $4.5 million in rental dividends to its investors, including over $1 million in the first quarter of 2024 alone.
Click here to view Arrived’s current offerings.
This article 3 Reliable Dividend Stocks And 1 Alternative Investment To Make You Money While You Sleep originally appeared on Benzinga.com
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