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6 Highest Yielding Dividend Aristocrats Are Huge April Bargains
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With the first quarter coming to a close, investors are once again riding a solid winning streak from all three major indices. Both the Nasdaq and the S&P 500 are up over 10%, while the venerable Dow Jones Industrial is up 4.24%. With a solid start to the year already on the books, many investors may be looking to stay in the game by moving some capital from aggressive growth stocks to dividend-yielding companies that could offer a safe space should the markets roll over.
Often, when investors look for defensive companies paying big dividends, they are drawn to the Dividend Aristocrats, and with good reason. The 67 companies that made the cut for the 2024 S&P 500 Dividend Aristocrats list have increased dividends (not just remained the same) for 25 years straight. But the requirements go even further, with the following attributes also mandatory for membership on the Dividend Aristocrats list:
We screened the 2024 Dividend Aristocrats, looking for the highest-yielding companies that Wall Street endorses for passive income investors. Passive income is a steady stream of unearned income that doesn’t require active traditional work. Ideas for earning passive income include investments, real estate, and side hustles.
This is an ideal stock for growth and income investors looking for a safer contrarian idea for the rest of 2024 that pays a whopping 5.91% dividend every month. Realty Income Corp. (NYSE: O) is an S&P 500 company that provides stockholders with dependable monthly income.
The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 15,540 real estate properties owned under long-term lease agreements with commercial tenants.
The company has declared 644 consecutive common stock monthly dividends throughout its 55-year operating history and increased the dividend 123 times since Realty Income’s public listing in 1994. It is a top real estate member of the S&P 500 Dividend Aristocrats index.
This top company could jump with a continued economic pick-up. The shares have rallied over the last month and pay a solid 5.76% dividend. 3M Co. (NYSE: MMM) is a diversified technology company worldwide.
It operates through four segments:
The Safety and Industrial segment offers:
The 3M Transportation and Electronics segment provides:
The company’s Healthcare segment offers:
The Consumer segment provides:
This is a very off-the-radar idea, but it makes sense as Amcor PLC (NYSE: AMCR) manufactures and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. It produces always-needed products and pays a strong 5.38% dividend.
The company operates through two segments:
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:
The company sells its products primarily through its direct sales force.
This company is a mutual fund powerhouse that pays a safe and secure 4.54% dividend. Franklin Resources Inc. (NYSE: BEN) is among the most prominent global money managers.
The firm markets mutual funds and institutional separate accounts under the Franklin, Templeton, and Mutual Series brands. At times, 50% of its sales are from outside the US, an advantage given the maturing U.S. market.
Franklin Resources offers its products and services under the brands of:
The 2023-2024 bull market has proven to be a solid tailwind for the company. While withdrawals from baby boomers may be a concern, the path forward looks solid.
While commercial real estate has been hit some, hard assets are good in inflation, and this stock pays a solid 4.40% dividend. Federal Realty Investment Trust (NYSE: FRT) is a recognized leader in the ownership, operation, and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C., to Boston, San Francisco, and Los Angeles.
Federal Realty’s mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply.
Its expertise includes creating urban, mixed-use neighborhoods like:
Federal Realty’s 102 properties include approximately 3,300 tenants in 26 million commercial square feet and over 3,100 residential units. The REIT has increased its quarterly dividends to its shareholders for 56 consecutive years, the longest record in the industry.
This integrated giant is a safer way for investors looking to position themselves in the energy sector. It pays a 4.17% dividend, and Warren Buffett added 16 million shares in the first quarter. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide through its subsidiaries.
The company operates in two segments:
The Upstream segment is involved in the following:
The Downstream segment engages in:
Chevron announced in the fall that it has entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of Hess’s outstanding shares in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion.
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