Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.
Most dividend investors aim to secure a reliable passive income stream from quality dividend stocks. Passive income is a consistent unearned income that doesn’t require active traditional work. It’s a financial goal that can be achieved through various means, including investments, real estate, or side hustles.
Given that dividends have contributed a significant 1/3 of the total return in the S&P 500, we conducted a meticulous screening of the venerable index. We aimed to identify companies that may be less well-known and off the radar of most investors. Four such companies emerged, all paying at least a 6% dividend. These companies are rated Buy at top Wall Street firms, making them sensible choices for investors seeking safer large-cap companies that can be total return winners.
Why are we covering these stocks?
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While S&P 500 members, since they are off-the-radar of many investors that, could very well offer total return potential that some more familiar names may not. Here at 247 Wall St., we consistently emphasize the power of total return to our readers. This strategy can significantly boost your overall investing success. Total return is the combined increase in a stock’s value and dividends.
Boston Properties
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This quality Real Estate giant offers size, safety, and a hefty 6.36% dividend. Boston Properties Inc. (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets:
- Boston
- Los Angeles
- New York
- San Francisco
- Seattle
- Washington, D.C.
The fully integrated real estate company is a real estate investment trust (REIT). The current portfolio totals 53.3 million square feet and 188 properties, including ten under construction/redevelopment.
Boston Properties’ portfolio includes 167 office properties, 14 retail properties (including two retail properties under construction/redevelopment), six residential properties (including one residential property under construction), and one hotel.
Crown Castle International
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This top cell tower company offers incredible growth and income possibilities with a fat 6.53% dividend. Crown Castle International Corp. (NYSE: CCI) is one of the largest U.S. wireless tower companies, with over 40,000 towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every primary U.S. market.
The company’s core business is leasing space on its wireless towers, primarily to wireless carriers, government agencies, and broadband data providers. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology, and wireless service – bringing information, ideas, and innovations to the people and businesses that need them.
Crown Castle is one of the best stocks in the sector for more conservative investors. Its high yield distribution and low volatility make it a good holding for accounts seeking growth, income, and less risk.
Healthpeak Properties
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Healthpeak Properties Inc. (NYSE: DOC) presents a compelling investment opportunity. With an aging population and the increasing demand for new facilities, this fully integrated real estate investment trust (REIT) and S&P 500 company offers a substantial 6.36% dividend. Moreover, it holds the potential for significant growth. Healthpeak’s strategic focus on owning, operating, and developing high-quality real estate for healthcare discovery and delivery ensures a stable and lucrative investment.
The company earned the 2024 ENERGY STAR Partner of the Year Award for Sustained Excellence from the U.S. Environmental Protection Agency and the U.S. Department of Energy. This marks Healthpeak’s fourth time being named Partner of the Year and its first time being recognized for Sustained Excellence.
In March, the company completed its previously announced all-stock merger with Physicians Realty Trust, which was a merger of equals deal. The combined company will operate under “Healthpeak Properties, Inc.” Healthpeak now owns a combined portfolio of top-quality health care real estate assets in the high barrier-to-entry markets of the United States.
Kinder Morgan
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This is one of the top energy stocks and remains a favorite across Wall Street. It pays a dependable 6.29% dividend. Kinder Morgan Inc. (NYSE: KMI) is an energy infrastructure company in North America. The company operates through Natural Gas, Products, Terminals, and CO2 segments.
The Natural Gas Pipelines segment:
- Owns and operates the interstate and intrastate natural gas pipeline and underground storage systems
- Natural gas gathering systems and natural gas processing and treating facilities
- Natural gas liquids fractionation facilities and transportation systems
- 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 transmit facilities.
The Terminals segment owns and operates liquids and bulk terminals that store and handle various commodities, including:
- Gasoline
- Diesel fuel
- Chemicals
- Ethanol
- Metals
- Petroleum coke
- Owns tankers
Lastly, 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.
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