Investing

5 Top Dividend Stocks Passive Income Investors Should Buy in March

Lee Jackson

Published: March 10, 2024 2:15 pm

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 24/7 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.

Most dividend investors seek solid passive income streams from quality dividend stocks. Passive income is a steady stream of unearned income that doesn’t require active traditional work. Shared ideas for earning passive income include investments, real estate, or side hustles.

We screened our 24/7 Wall Street equity dividend stock research database for quality stocks that pay reliable dividends and found five companies that passive income investors should buy in March. All are Buy-rated by top Wall Street firms.

Altria

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Altria also owns over 10% of Anheuser-Busch InBev.

This maker of tobacco products offers value investors a great entry point now and a rich 9.43% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

The company provides cigarettes primarily under the Marlboro brand:

• Cigars and pipe tobacco, principally under the Black & Mild brand
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! oral nicotine pouches

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria owns over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer.

3M

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The legacy industrial provides everything from tape to highway signs

This top company could jump with an economic pick-up and pay a very rich 6.52% dividend. 3M Company (NYSE: MMM) is a diversified technology company worldwide.

It operates through four segments:

• Safety and Industrial
• Transportation and Electronics
• Health Care
• Consumer

The Safety and Industrial segment offers:

• Industrial abrasives and finishing for metalworking applications
• Auto body repair solutions;
• Closure systems for personal hygiene products
• Masking and packaging materials
• Electrical products and materials for construction and maintenance
• Power distribution and electrical original equipment manufacturers;
• Structural adhesives and tapes
• Respiratory, hearing, eye, and fall protection solutions
• Natural and color-coated mineral granules for shingles

The 3M Transportation and Electronics segment provides Ceramic solutions;

• Attachment tapes
• Films
• Sound and temperature management for vehicles
• Premium large-format graphic films for advertising and fleet signage
• Light management films and electronics assembly solutions
• Packaging and interconnection solutions
• Reflective signage for highway and vehicle safety

Italy, the company’s Healthcare segment offers:

• Food safety indicator solutions
• Healthcare procedure coding and reimbursement software
• Skin, wound care, and infection prevention products and solutions
• Dentistry and orthodontic solutions
• Filtration and purification systems.

The Consumer segment provides:

• Consumer bandages
• Braces, supports, and respirators
• Home cleaning products
• Retail abrasives and paint accessories
• Car care DIY products;
• Picture hanging and consumer air quality solutions
• Stationery products.

It offers its products through e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers.

Bristol-Myers Squibb

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This top company remains a solid pharmaceutical stock to own long-term, offering an outstanding entry point and a massive 4.50% dividend. Bristol-Myers Squibb Company (NYSE: BMY) discovers, develops, licenses, manufactures, and markets pharmaceutical products worldwide.

The company offers products in hematology, oncology, cardiovascular, and immunology therapeutic classes.

The company’s products include:

• Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma
• Opdivo for anti-cancer indications
• Eliquis, an oral inhibitor indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE
• Orencia for adult patients with active RA and psoriatic arthritis, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis

The company also provides:

• Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia
• Yervoy for the treatment of patients with unresectable or metastatic melanoma
• Abraxane, a protein-bound chemotherapy product
• Implicit for the treatment of multiple myeloma
• Reblozyl for the treatment of anemia in adult patients with beta-thalassemia

Comerica

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Based in Dallas, this fast-growing banking center giant pays a substantial 5.45% dividend. Comerica, Inc. (NYSE: CMA) provides various financial products and services.

The company operates through:

• Commercial banking
• Retail banking
• Wealth management
• Finance segments

The Commercial Bank segment offers:

• Commercial loans and lines of credit
• Deposits
• Cash management
• Capital market products
• International trade finance
• Letters of credit
• Foreign exchange management services
• Loan syndication services
• Payment and card services for small and middle-market businesses, multinational corporations, and governmental entities

The Retail Bank segment provides:

• Personal financial services, such as consumer lending
• Consumer deposit gathering
• Mortgage loan origination and various
• Consumer products that include deposit accounts, installment loans, credit cards, student loans, home equity lines of credit
• Residential mortgage loans and commercial products and services to micro-businesses.

The Wealth Management segment offers products and services comprising:

• Fiduciary
• Private banking
• Retirement
• Investment management and advisory
• Investment banking and brokerage services
• Annuity products and life, disability, and long-term care insurance products

The Finance segment engages in the securities portfolio and asset and liability management activities.

Comerica operates in:

• Texas
• California
• Michigan
• Arizona
• Florida
• Canada
• Mexico

Dominion Energy

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Many of the Wall Street firms we cover are still very positive on utilities, and this company pays a strong 5.56% dividend.

Dominion Energy, Inc. (NYSE: D) operates through four segments:

• Dominion Energy Virginia,
• Gas Distribution, 
• Dominion Energy South Carolina, and
• Contracted Assets. 

The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to residential, commercial, industrial, and governmental customers in Virginia and North Carolina.

The Gas Distribution segment engages in

• Regulated natural gas gathering
• Transportation
• Distribution and sales activities 
• Distributes nonregulated renewable natural gas

This segment serves residential, commercial, and industrial customers.

The Dominion Energy South Carolina segment:

• Generates
• Transmits
• Distributes electricity and natural gas to residential, commercial, and industrial customers in South Carolina. 

The company’s portfolio of assets included approximately:

• 30.2 gigawatts of electric generating capacity
• 10,500 miles of electric transmission lines
• 85,600 miles of electric distribution lines
• 94,200 miles of gas distribution lines
• Dominion serves approximately 7 million customers.