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With increasing concerns about delayed interest rate cuts amid looming geopolitical threats, investing in dividend stocks could be the best move for investors looking for passive income. These investments not only provide a steady stream of income but also provide a buffer against market fluctuations.
With volatility on the rise, stability is a sought-after commodity, making established companies with solid track records particularly tempting. These industry giants have an impressive track record of dividend payments coupled with robust business models, making them attractive options for those looking to strengthen their portfolios.
Fortis
With total assets of around $66 billion Fortis Inc. (NYSE:FTS) is one of North America’s most prominent regulated gas and electric utilities. Fortis, headquartered in St. John’s, Canada, joined the ranks of “dividend kings” companies last September when the company increased its dividend payouts for the 50th consecutive year.
The utility increased its quarterly dividend by 4.4% to $0.59 per share, payable beginning in the fourth quarter of 2023. Fortis currently pays a $1.70 dividend annually, representing a yield of 4.36% over the previous quarter corresponds to the current price. Additionally, the company forecasts that its dividends will grow at a compound annual growth rate (CAGR) of 4-6% over the next four years. Fortis is therefore considered a reliable source of income and is therefore a convincing dividend stock for income-oriented investors.
“Our Board of Directors declared a fourth quarter dividend, an increase of 4.4%, marking the 50th year of continuous dividend increases,” 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 giant, continues to entice investors with an annual dividend payout of $3.92 per share, representing a dividend yield of 9.04%.
Another Dividend King stock, Altria Group, has consistently increased its dividends 58x over the past 54 years. The most recent dividend increase came in the third quarter of 2023, when Altria increased its quarterly distributions by 4.3% to $0.94 per share.
Despite the regulatory headwinds, Altria’s robust business model and durable cash flows make it a dividend powerhouse. “We have made significant progress toward our vision and our highly profitable traditional tobacco businesses have continued to perform well in a challenging environment,” Altria CEO Billy Gifford said in the latest earnings release.
Altria also expanded its share repurchase program by $2.4 billion, as reported in its first-quarter earnings release, which should further boost shareholder returns.
Altira’s next dividend will be paid to shareholders on April 30, 2024.
MC Donalds
McDonald’s Corporation (NYSE:MCD), the global fast food giant, not only satisfies appetites but also lures investors with its tempting dividend prospects. The company is widely considered a recession-proof stock because demand for its products tends to remain consistent despite the current economic cycle.
McDonald’s, currently a Dividend Aristocrat, is currently on its way to becoming a dividend king stock. The company has consistently increased its dividends for 47 years since it began paying them in 1976. McDonald’s last increased its quarterly dividend by 10% to $1.67 per share in the final quarter of 2023. The company pays $6.68 per share in dividends annually, yielding 2.45%. on MCD’s share price.
As a household name with a loyal customer base, McDonald’s is a compelling choice for dividend-seeking investors who value stability in their portfolios.
McDonald’s made its last dividend payment on March 15, 2024.
Arrived
Real estate has long been a favorite among income investors. Monthly rent provides steady, reliable cash flow, while rising property values provide long-term capital gains. However, the headaches that come with being a landlord make traditional real estate investing anything but passive. Thanks to Arrivald, an investment platform backed by Amazon.com Inc. founder Jeff Bezos, virtually anyone can enjoy the benefits of real estate ownership without the hassle. The platform allows retail investors to purchase shares of single-family rental properties for as little as $100 while Arrivald takes care of the day-to-day operations.
Real estate shareholders receive monthly dividends that can be deposited into their bank accounts or reinvested in additional properties. Arrival 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 see Arrivald’s current offers.
This article, “3 Reliable Dividend Stocks and 1 Alternative Investment to Make Money While You Sleep” originally appeared on Benzinga.com