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As concerns grow over 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 rising volatility levels, stability is a coveted asset, making established companies with a solid track record particularly attractive. These industry stalwarts boast impressive dividend payment track records combined with resilient business models, making them attractive options for those looking to strengthen their portfolios.
Fortis
With approximately $66 billion in total assets, Fortis Inc. (NYSE:FTS) is one of the most prominent regulated gas and electric utilities in North America. Fortis, headquartered in St John's, Canada, joined the ranks of the 'Dividend King' companies in September last year when it increased its dividend payments for the 50th year in a row.
The electricity giant increased 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 per year, giving a yield of 4.36% on the current share price. Furthermore, the company predicts that its dividends will grow at a compound annual growth rate (CAGR) of 4-6% over the next four years. Fortis is therefore a reliable source of income, making it an attractive dividend stock for income-oriented investors.
“Our Board of Directors has declared a dividend for the fourth quarter, representing an increase of 4.4%, which will mark 50 years of consecutive increases in dividend payments,” 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's next dividend payment will take place 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 entice investors with an annual dividend payout of $3.92 per share, which translates into a dividend yield of 9.04%.
Another Dividend King stock, Altria Group, has consistently increased its dividends 58 times over the past 54 years. The last dividend increase came in the third quarter of 2023, with Altria increasing its quarterly payouts by 4.3% to $0.94 per share.
Despite regulatory headwinds, Altria's resilient business model and continued cash flows make it a dividend power. “We have made meaningful progress in pursuing our vision, and our highly profitable legacy tobacco businesses continued to perform well in a challenging environment,” Altria Chief Executive Officer Billy Gifford said 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 strengthen 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 giant, is not only satisfying appetites but also tantalizing investors with its tempting dividend prospects. The company is widely considered 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 consistently increased its dividends for 47 years since it started paying out in 1976. McDonald's last increased its quarterly dividends by 10% to $1.67 per share in the final quarter of 2023. The company pays $6.68 per share annually in dividends, yielding a 2.45% yield. on MCD's share price.
McDonald's is a household name with a loyal customer base and is an attractive choice for dividend-seeking investors looking for 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 rentals provide a steady stream of reliable cash flow, while rising property values deliver long-term capital gains. However, the headaches that come with being a landlord mean that traditional real estate investments are 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 management burden. The platform allows retail investors to buy shares of single-family homes for as little as $100, while Arrived handles the day-to-day operations.
Real estate shareholders receive monthly dividends, which can be deposited into their bank account or reinvested in more real estate. Arrivald has paid out more than $4.5 million in rental dividends to its investors, including more than $1 million in the first quarter of 2024 alone.
Click here to view Arrivald's current offering.
This article 3 reliable dividend stocks and 1 alternative investment that can help you make money while you sleep originally appeared on Benzinga.com
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