24/7 Insights
- Quality dividend stocks can generate solid total returns and yield passive income.
- Stocks that pay dependable dividends should be in demand when interest rates drop.
- Access 2 legendary, high-yield dividend stocks Wall Street loves.
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.
A comprehensive study conducted by the Hartford Funds, in collaboration with Ned Davis Research, revealed that dividend stocks have consistently outperformed non-payers. Over the past half-century (1973-2023), dividend stocks delivered an annualized return of 9.18%, more than double the annualized return for non-payers (3.95%). This historical performance underscores the potential of dividend stocks for generating passive income and total returns.
We screened our 24/7 Wall St. Blue Chip Wall Street research universe, looking for companies with a Buy rating at multiple firms and paying big, dependable dividends. Six top stocks hit our screens, and all make sense for investors looking for safety and a solid stream of passive income.
Altria
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This tobacco company offers value investors a great entry point now and a rich 8.46% 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, as well as:
- 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 used to own over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer. The company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of their holdings but still leaves a hefty 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan funded in part by the sale.
BP
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This company is one of the premier European integrated oil giants, paying shareholders a hefty 4.91 % dividend. BP PLC (NYSE: BP) engages in the energy business worldwide. It operates through Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft segments.
BP produces and trades natural gas, offers biofuels, operates onshore and offshore wind and solar power generating facilities, and provides de-carbonization solutions and services, such as hydrogen and carbon capture, usage, and storage.
The company is also involved in the convenience and mobility business, which manages the sale of fuels to:
- Wholesale and retail customers
- Convenience products
- Aviation fuels
- Castrol lubricants
- Refining,
- Supply and trading of oil products
- Operation of electric vehicle charging facilities
In addition, it produces and refines oil and gas and invests in upstream, downstream, and alternative energy companies, advanced mobility, bio and low-carbon products, carbon management, digital transformation, and power and storage areas.
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 5.75% dividend. Bristol-Myers Squibb Co. (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
Dominion Energy
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Many of the Wall Street firms we cover are still very positive on utilities despite the sharp move higher this year, and Dominion Energy Inc. (NYSE: D) pays a strong 5.01% dividend.
The company operates through four segments:
- Dominion Energy Virginia
- Gas Distribution
- Dominion Energy South Carolina
- 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
Kenvue
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Spun off from Johnson & Johnson Inc. (NYSE: JNJ) last year, this potential total return home run pays a solid 4.18% dividend. Kenvue Inc. (NYSE: KVUE) is a global consumer health company.
The company operates through three segments:
- Self Care
- Skin Health and Beauty
- Essential Health
The self-care segment offers cough, cold, and allergy pain care, digestive health, smoking cessation, and other products under these brands:
- Tylenol
- Nicorette
- Zyrtec
The Skin Health and Beauty segment provides face and body care, hair care, sun care, and other products under these brands:
- Neutrogena
- Aveeno
- OGX
The Essential Health segment offers oral and baby, women’s health, and wound care products under these brands:
- Listerine
- Johnson’s
- Band-Aid
- Stayfree
5 Best Dividend Stocks to Buy in June
Rio Tinto
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This mining giant could be a massive winner as demand for all commodities continues to storm higher and pays a solid 6.37% dividend. Rio Tinto PLC (NYSE: RIO) explores, mining, and processing mineral resources worldwide. The company offers:
- Aluminum
- Copper
- Diamonds
- Gold
- Borates
- Titanium dioxide
- Salt
- Iron ore
- Lithium
It also owns and operates open pit and underground mines, mills, refineries, smelters, power stations, and research and service facilities.
In 2022 the company completed the sale of a royalty it holds on an area, including the Cortez mine operational area and the Fourmile development project in Nevada, to RG Royalties, a direct wholly owned subsidiary of Royal Gold, for $525 million in cash. Rio Tinto obtained the royalty as partial consideration for selling its 40% interest in the Cortez Complex to Barrick in 2008.
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