Dividend stocks remain highly favored by investors due to their ability to provide a stable income stream coupled with potential stock value growth. This article explores the Dividend Champions, a group of companies known for increasing their dividends for at least 25 years. Unlike Dividend Aristocrats, these companies can vary in market cap and are not confined to the S&P 500. The 2024 list of Dividend Champions includes 149 stocks, with seven companies standing out for their high dividend payouts, making them attractive choices for those seeking reliable passive income.
Previous analyses have highlighted the benefits of investing in Dividend Aristocrats, which consist of S&P 500 companies that have raised dividends for at least 25 years. In contrast, Dividend Kings, another group, have a longer track record of 50 years of dividend increases. However, Dividend Champions offer a broader selection as they are not limited by market cap size or S&P 500 inclusion, potentially providing more opportunities for investors to find high-yield stocks with a history of steady income.
Why cover the Dividend Champions?
Dividend Champions provide investors with the advantage of not being limited to S&P 500 companies, encompassing a wide range of market cap sizes. This inclusivity allows for the discovery of many stocks that have consistently paid dependable dividends for over 25 years, offering both stability and growth potential.
Altria
Altria Group Inc. (NYSE: MO), a major player in the tobacco industry, presents a compelling case for value investors with its 8.73% dividend yield. The company primarily markets its tobacco products under the Marlboro brand, in addition to other smokable and oral tobacco products. Altria also holds a significant stake in Anheuser-Busch InBev, enhancing its portfolio diversity.
Chevron
Chevron Corporation (NYSE: CVX), a leader in the energy sector, offers a 4% dividend yield, making it a safer option for investors. The company’s operations span the upstream and downstream segments, involving the exploration, production, and refining of oil and natural gas. Chevron’s strategic acquisition of Hess Corporation further solidifies its market position.
Enterprise Products Partners
Enterprise Products Partners L.P. (NYSE: EPD) offers a 6.95% dividend yield and provides various midstream energy services, including natural gas processing and transportation. The company’s high distribution coverage ratio makes it a less risky option within the master limited partnership (MLP) sector.
Eversource Energy
Eversource Energy (NYSE: ES) is a conservative stock idea with a 4.70% dividend yield. The company operates in the energy delivery business, including electric and natural gas distribution, and serves customers in Connecticut, Massachusetts, and New Hampshire. Its diversified operations across electric, gas, and water utilities ensure stable returns.
NNN REIT
NNN REIT, Inc. (NYSE: NNN) focuses on high-quality retail properties and offers a 5.30% dividend yield. The company owns thousands of properties across the United States, with a robust lease term duration, contributing to its reliable income stream and making it a strong candidate for income-focused investors.
Realty Income
Realty Income Corporation (NYSE: O) provides a substantial 5.88% dividend yield and is structured as a real estate investment trust (REIT). The company’s monthly dividends are supported by cash flows from its extensive portfolio of over 15,540 properties leased under long-term agreements, ensuring dependable income for shareholders.
UGI Corporation
UGI Corporation (NYSE: UGI) offers a 6.07% dividend yield and operates in the energy sector, distributing propane, natural gas, and electricity. The company’s extensive network and diversified business segments, including AmeriGas Propane and UGI Utilities, provide a stable and high-yield investment opportunity.
Key Inferences
– Dividend Champions can offer higher yields and diverse opportunities not confined to the S&P 500.
– Companies like Altria and Chevron provide robust dividends coupled with strategic market positioning.
– Investing in high-yield dividend stocks like Realty Income and NNN REIT can provide steady income streams.
The Dividend Champions list highlights companies with a proven track record of raising dividends, offering a reliable income source and potential for capital appreciation. Investors seeking stability should consider these companies, given their history of dependable payouts and diverse market presence. The selected high-yield stocks in various sectors, from energy to real estate, underscore the importance of choosing investments based on consistent performance and potential for long-term returns. These companies not only provide attractive dividend yields but also present opportunities for portfolio diversification.
