Investors love dividend stocks because they provide dependable income and give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the actual return on an investment or a portfolio has income and stock appreciation.
We screened our 24/7 Wall St. dividend stock research universe for top dividend-paying stocks trading under $25. Six stocks hit our screens, offer investors solid upside potential and dependable dividends, and all have ‘Strong Buy’ ratings on Wall Street.
AT&T
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The legacy telecommunications company has been going through a lengthy restructuring, lowered the dividend (still an outstanding 7.12%), and sold off or merged underperforming assets. AT&T, Inc. (NYSE: T) provides worldwide telecommunications, media, and technology services.
The Communications segment offers wireless voice and data communications services. It sells handsets, wireless data cards, wireless computing devices, carrying cases, and hands-free devices through its company-owned stores, agents, and third-party retail stores.
AT&T also provides
- Data,
- Voice,
- Security
- Cloud solutions
- Outsourcing
- Managed and professional services,
- Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers. This segment offers residential customers broadband fiber and legacy telephony voice communication services.
It markets its communications services and products under the:
- AT&T
- Cricket
- AT&T PREPAID
- AT&T Fiber brands
The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.
Energy Transfer
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The top master limited partnership is a safe way for investors looking for energy exposure and income and pays a massive 9.48% distribution. Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins.
The company is a publicly traded limited partnership with core operations that include complementary:
- Natural gas midstream,
- Intrastate and interstate transportation and storage assets;
- Crude oil, natural gas liquids (NGL), refined product transportation and terminalling assets, NGL fractionation, and various acquisition and marketing assets.Through its ownership of Energy Transfer Operating, L.P., the company also owns:
- Lake Charles LNG Company,
- The general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco LP (NYSE: SUN)
- The general partner interests and 39.7 million standard units of USA Compression Partners, LP (NYSE: USAC).
Ford Motor Company
This legacy carmaker is a stunning, Strong Buy as the massive UAW strike recently ended. Ford Motor Company (NYSE: F) develops, delivers, and services a range of Ford trucks, commercial cars, vans, sport utility vehicles, and Lincoln luxury vehicles worldwide. Ford shareholders also grab a fat 6.11% dividend.
Ford operates through
- Ford Blue,
- Ford Model E
- Ford Pro,
- Ford Next
- Ford Credit segments.
The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors, dealers, and dealerships to commercial fleet customers, daily rental car companies, and governments.
Ford also engages in vehicle-related financing and leasing activities to and through automotive dealers. In addition, the company provides retail installment sale contracts for new and used vehicles and direct financing leases for new cars to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers.
Further, it offers wholesale loans to dealers to finance the purchase of vehicle inventory and loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs.
KeyCorp
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This top regional player is very cheap at current levels for investors looking at financials. KeyCorp. (NYSE: KEY) operates as the bank holding company for KeyBank National Association and provides deposit, lending, cash management, and investment services to individuals and small and medium-sized businesses under KeyBank National Association.
KeyCorp also provides a broad range of sophisticated corporate and investment banking products, such as:
- Merger and acquisition advice,
- Public and private debt and equity,
- Syndications
- Derivatives to middle market companies in selected industries throughout the United States under KeyBanc Capital Markets.
KeyCorp investors are paid a massive 7.56% dividend.
Kinder Morgan
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This is one of the top energy stocks and remains a favorite across Wall Street, paying shareholders a solid 6.84% dividend. Kinder Morgan, Inc. (NYSE: KMI) is an energy infrastructure company in North America.
The company operates through
- Natural Gas
- Products
- Terminals
- CO2 segments
Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline and underground storage systems; natural gas gathering and processing and treating facilities; natural gas liquids fractionation and transportation systems; and liquefied natural gas liquefaction and storage facilities.
The Products Pipelines segment owns and operates refined petroleum products, crude oil and condensate pipelines, associated product terminals, and petroleum OKEpipeline transmix facilities.
The Terminals segment owns and operates liquids and bulk terminals that store and handle various commodities, including gasoline, diesel fuel, chemicals, ethanol, metals, and petroleum coke and owns tankers.
The CO2 segment produces, transports, and markets CO2 to recover and produce crude oil from mature oil fields and owns interests in/or operates oil fields and gasoline processing plants, as well as a natural oil pipeline system in West Texas. It holds and runs approximately 83,000 miles of pipelines and 144 terminals.
Kohl’s
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This top retailer still offers an excellent entry point and a massive 9.59% dividend. Kohl’s Corp. (NYSE: KSS) operates department stores in the United States.
It provides private label, exclusive, and national brand apparel, footwear, accessories, beauty, and home products to children, men, and women customers. The company also sells its products online at Kohls.com and through mobile devices.
With the economy struggling, more and more people are turning to discount retailers for clothes, food, and many other items. Kohl’s has a legendary following of value-seeking customers who shop at the retailer through good and bad times. The company’s bottom line increases when the use of privately branded credit cards increases.
Some top analysts also feel that the bankruptcy at Bed Bath & Beyond will be positive for the company as bargain-hunting shoppers look to retailers like Kohl’s. It should be noted that there is the potential for company executives to lower the dividend.
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