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 total return on an investment or a portfolio consists of income and stock appreciation.
At 247 Wall St., we always remind our readers about the impact total return has on portfolios because it is one of the best ways to improve the chances of overall investing success. Again, total return is the combined increase in a stock’s value plus dividends.
With the stock market racing to new all-time highs on the strength of Artificial Intelligence mania, we decided to go bargain shopping, looking for top dividend stocks that, for whatever reason, are trailing this massive run-up in the markets.
Six top companies caught our eye, two of which are top U.S. retailers. All offer investors outstanding entry points, dependable and big dividends, and the potential for consistent passive income. In addition, all are buy-rated at top Wall Street firms.
AT&T
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The legacy telecommunications company has been going through a lengthy restructuring, while lowering the dividend, which still checks in at 6.54%. AT&T, Inc. (NYSE: T) provides worldwide telecommunications, media, and technology services.
Its Communications segment offers wireless voice and data communications services.
AT&T sells through its company-owned stores, agents, and third-party retail stores:
- Handsets
- Wireless data cards
- Wireless computing devices
- Carrying cases
- Hands-free devices
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.
In addition, this segment offers broadband fiber and legacy telephony voice communication services to residential customers.
It markets its communications services and products under :
- AT&T
- Cricket
- AT&T PREPAID
- AT&T Fiber
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.
Best Buy
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The electronics retail giant is priced to be bought and offers a hefty 4.83% dividend. Best Buy Inc. (NYSE: BBY) sells technology products in the United States and Canada.
The company operates in two segments:
- Domestic
- International
Its stores provide:
- Computing and mobile phone products, such as desktops, notebooks, and peripherals
- Mobile phones comprising related mobile network carrier commissions; networking products
- Tablets covering e-readers; smartwatches
- Consumer electronics consist of digital imaging, health and fitness products, home theater, portable audio comprising headphones and portable speakers, and smart home products.
The company’s stores also offer:
- Appliances such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, and vacuums
- Entertainment products such as drones, peripherals, movies, music, and toys
- Gaming hardware and software, virtual reality, and other software products
- Additional products include baby, food and beverage, luggage, outdoor living, and sporting goods.
In addition, it provides consultation, delivery, design, installation, memberships, repair, set-up, technical support, health-related, and warranty-related services.
Kohl’s
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This top retailer got walloped back in early October and still offers an excellent entry point now, yielding 7.21%. 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.
The company provides its products primarily under the brand names of:
- Croft & Barrow
- Jumping Beans
- SO
- Sonoma Goods for Life
- Food Network,
- LC Lauren Conrad
- Nine West
- Simply Vera
- Vera Wang.
Kohl’s has a partnership where Amazon customers can return items through the retailer. Some feel the deal should be expanded with a full partnership or even Amazon buying Kohl’s.
Pfizer
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This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes but has been crushed as many are not getting boosters. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide and pays a rich 6.32% dividend, which has risen yearly for the last 14 years.
The company offers medicines and vaccines in various therapeutic areas, including:
- Cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands
- Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
- Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands.
Pfizer also provides medicines and vaccines in various therapeutic areas, such as:
- Pneumococcal disease, meningococcal disease, tick-borne encephalitis
- COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
- Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
- Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands
Sabra Healthcare
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This is one of the larger companies in the industry and pays a massive 8.58% distribution. Sabra Healthcare REIT, Inc. (NASDAQ: SBRA) is an internally managed healthcare REIT that invests in skilled nursing (SNF) and senior housing.
As of September 30, 2023, Sabra’s investment portfolio included:
- 377 real estate properties held for investment
- 240 Skilled Nursing/Transitional Care facilities
- 43 senior housing communities
- 61 senior housing communities operated by third-party property managers under property management agreements
- 18 Behavioral Health facilities
- 5 Specialty Hospitals and Other Facilities
- 12 investments in loans receivable (consisting of two mortgage loans and ten other loans)
- Five preferred equity investments
- Two investments in unconsolidated joint ventures.
As of September 30, 2023, Sabra’s real estate properties held for investment included 37,606 beds/units spread across the United States and Canada.
TC Energy
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While perhaps off-the-radar for many investors, this dual-threat energy company yields 7.13% and is a steal at current levels. TC Energy Corporation (NYSE: TRP) is an energy infrastructure company in North America.
BlackRock Inc. and Morgan Stanley investment funds recently agreed to buy TC Energy Corp.’s Portland Natural Gas Transmission System in a deal valued at about $1.14 billion
It operates through five segments:
- Canadian Natural Gas Pipelines
- U.S. Natural Gas Pipelines
- Mexico’s Natural Gas Pipelines
- Liquids Pipelines
- Power and Energy Solutions
The company builds and operates a network of 93,600 kilometers of natural gas pipelines, which transports natural gas from supply basins to:
- Local distribution companies
- Power generation plants
- Industrial facilities,
- Interconnecting pipelines
- LNG export terminals and other businesses
It also has regulated natural gas storage facilities with a total working gas capacity of 532 billion cubic feet.
In addition, it has approximately 4,900 kilometers of liquids pipeline system that connects Alberta crude oil pipeline to refining markets in Illinois, Oklahoma, Texas, and the United States Gulf Coast.
Finally, the company owns or has interests in approximately 4,600 megawatts of power generation facilities and owns and operates roughly 118 billion cubic feet of non-regulated natural gas storage facilities in Alberta, Ontario, Québec, and New Brunswick.
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