24/7 Insights
- Stocks that pay dividends offer the potential for dependable passive income streams.
- Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500.
- Access 2 legendary, high-yield dividend stocks Wall Street loves.
Dividend stocks are a favorite among investors for their dual benefits, steady income stream, and the potential for significant total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time. In simpler terms, it’s the sum of an investment or portfolio’s income and stock appreciation.
For example, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%. That is, 10% for the increase in stock price and 3% for the dividends paid.
When you start building a portfolio of stocks, the most important ingredient for success is to get started early. So, regardless of how much money you begin with, if you continue to add to the pot and reinvest your dividends to buy more shares, there is a very good chance for long-term success.
We screened our 24/7 Wall St. dividend stock database, looking for companies that pay dependable dividends that also can supply some serious total return if they trade higher over time. We found five that look like great ideas, and all are priced under $15, if you have $1,000 to invest now. All five are rated buy at top Wall Street firms.
Amcor
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This is a very off-the-radar idea, but it makes sense as the company produces products that are always needed, and it pays a robust 5% dividend. Amcor PLC (NYSE: AMCR) manufactures and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions.
The company operates through two segments:
- Flexibles
- Rigid Packaging
The Flexibles segment provides flexible and film packaging products in food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries.
The Rigid Packaging segment offers rigid containers for a range of beverage and food products, including:
- Carbonated soft drinks
- Water
- Juices
- Sports drinks
- Milk-based beverages
- Spirits
- Beer
- Sauces
- Dressings
- Spreads
- Personal care items
- Plastic caps for various applications.
The company sells its products primarily through its direct sales force.
Antero Midstream
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Trading under $15, this very well-run company offers a huge total return package and a hefty 6.19% dividend. Antero Midstream Corp. (NYSE: AM) owns, operates, and develops midstream energy assets in the Appalachian Basin.
It operates in two segments:
- Gathering and Processing
- Water Handling
The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collects and processes production from Antero Resources’ wells in West Virginia and Ohio.
The Water Handling segment delivers fresh water from sources, including the Ohio River, local reservoirs, and various regional waterways; uses water handling systems to transport flowback and produced water; and offers pumping stations, water storage, and blending facilities.
Barings BDC
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This business development company is an industry leader and pays a massive 11.34% dividend. Barings BDC Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company elected to be treated as a business development company under the Investment Company Act 1940.
It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments, and senior secured private debt investments in private middle-market companies operating across various industries.
The company specializes in:
- Mezzanine
- Leveraged buyouts
- Management buyouts
- ESOPs
- Change of control transactions
- Acquisition financings
- Growth financing
- Recapitalizations in lower-middle market, mature, and later-stage companies
It invests in manufacturing and distribution, business services and technology, transportation and logistics, and consumer products and services. It invests in the United States. And it invests in companies with EBITDA of $10 million to $75 million, typically in private equity sponsor-backed.
KeyCorp
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This top regional player is very cheap at current levels for investors looking at financials and pays a big 5.27% dividend. KeyCorp. (NYSE: KEY) operates as the holding company for KeyBank National Association, which provides various retail and commercial banking products and services in the United States.
It operates in two segments:
- Consumer Bank
- Commercial Bank
The company offers various deposits, investment products, and services to individuals and small and medium-sized businesses including:
- Commercial leasing
- Investment management
- Consumer finance
- Personal finance and financial wellness
- Student loan refinancing
- Mortgage and home equity lending
- Credit card
- Treasury
- Business advisory
- Wealth management
- Asset management
- Cash management
- Portfolio management
- Trust and related services
It also provides a suite of banking and capital market products, such as:
- Syndicated finance
- Debt and equity capital market products
- Commercial payments
- Equipment finance
- Commercial mortgage banking
- Derivatives,
- Foreign exchange
- Financial advisory, and public finance
- Commercial mortgage loans to consumer, energy, healthcare, industrial, public sector, real estate, and technology sectors for middle market clients.
In addition, the company offers community development financing, securities underwriting, brokerage, and investment banking services.
5 Dividend Kings to Buy Now for Dependable Retirement Passive Income
Xerox
Source: Public Domain / Wikimedia Commons
This company is not just making copies and delivers a sweet 7.26% dividend. Xerox Holdings Corp. (NASDAQ: XRX) together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and internationally.
The company operates through two segments:
- Print and Other
- FITTLE
The Print and Other segment designs, develops, and sells document systems, solutions, and services, as well as IT and software products and services.
The FITTLE segment offers financing solutions for direct channel customer purchases, as well as lease financing to end-users.
It also offers:
- Workplace solutions comprising desktop monochrome, color, and multifunction printers, and ConnectKey software
- Digital printing presses and light production devices; and digital services that support workflow automation, personalization and communication software, content management solutions, and digitization services
In addition, the company provides:
- Graphic communications
- In-plant, and production solutions
- FreeFlow, a software solution for the automation and integration of processing of print jobs, comprising file preparation
- Final production, and electronic publishing; and IT services
- End-user computing devices, network infrastructure, and communications technology
- Technology product support, professional engineering, and commercial robotic process automation
Further, it sells paper products and standalone software, such as CareAR, DocuShare, and XMPie, and it invests in startups.
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