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Passive Income Investors Are Grabbing These 5 Dividend Kings Before the Rate Cuts
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24/7 Wall St. Insights
At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the ups and downs that always accompany the stock market, the reality for many people is the need to have solid passive income streams that accompany income from employment or other avenues.
The more passive income can help cover costly and rising costs like mortgage, insurance, taxes, and other expenses, the easier it is for investors to put away money for future needs as they build to retirement.
According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade or business in which the individual does not materially participate. It can also include income from limited partnerships, stocks, bonds, and other similar enterprises in which the investor is not actively involved.
With at least a 25-basis-point cut priced into the market and more expected over the next two years, many passive income investors have been snapping up some of the top Dividend Kings in anticipation of lower rates. The Dividend Kings are the 53 companies that have raised their dividends for 50 years, a testament to their dependability and reliability. Those are two “must-have” items for investors who rely on passive income to boost their overall revenue.
Many investors have focused on five top Dividend Kings stocks to get ahead of the coming rate cuts. Dividend stocks are returning in favor as bond yields plunge, and the five we selected are all buy-rated on Wall Street.
Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
This Dividend King is way off the radar for many but is among the safest plays now and pays a hefty 4.32% dividend. Through its subsidiaries, Black Hills Corp. (NYSE: BKH) operates as an electric and natural gas utility company in the United States. It operates in two segments.
The Electric Utilities segment generates, transmits, and distributes electricity to approximately 220,000 electric utility customers in:
The company also owns and operates 1,482 megawatts of generation capacity and 0,024 miles of electric transmission and distribution lines.
The Gas Utilities segment distributes natural gas to approximately 1,107,000 natural gas utility customers in:
In addition, the company owns and operates 4,713 miles of intrastate gas transmission pipelines, 42,222 miles of gas distribution mains and service lines, seven natural gas storage sites, approximately 50,000 horsepower of compression, and 515 miles of gathering lines.
Black Hills also constructs and maintains gas infrastructure facilities for gas transportation customers, provides appliance repair services to residential utility customers, and constructs electrical systems for large industrial customers.
Lastly, it produces electric power through wind, natural gas, coal-fired generating plants, and coal at its coal mine near Gillette, Wyoming.
With a diverse product base and a very popular and solid brand, Johnson & Johnson (NYSE: JNJ) is among the most conservative big pharmaceutical plays and pays a solid 3.01% dividend. The company researches, develops, manufactures, and sells various products in the health care field worldwide.
The company’s Innovative Medicine segment offers products for various therapeutic areas, such as:
Its MedTech segment provides Interventional Solutions, including:
This segment also offers an orthopedics portfolio that includes products and enabling technologies that support hips, knees, trauma, spine, sports, and others:
This top consumer staples stock posted mixed earnings for the quarter but will still supply all the goods for upcoming NFL football season tailgates and parties and pays a solid 3.08% dividend. PepsiCo Inc. (NYSE: PEP) is a worldwide food and beverage company.
Its Frito-Lay North America segment offers:
The company’s Quaker Foods North America segment provides:
PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
With the potential for the economy to take a hit, you can bet that the do-it-yourself legions will fix rather than buy new, and yielding a strong 3.35% this legendary stock is a solid idea now. Stanley Black & Decker Inc. (NYSE: SWK) provides hand tools, power tools, outdoor products, and related accessories in the United States, Canada, Other Americas, Europe, and Asia.
Its Tools & Outdoor segment offers professional-grade corded and cordless electric power tools and equipment, including:
This segment sells its products under these brand names:
The company’s Industrial segment provides:
This segment sells its products through a direct sales force and third-party distributors to the automotive, manufacturing, electronics, construction, aerospace, and other industries.
While this company’s products may not be for everyone, they have strong demand, have been in business for almost 150 years, and offer shareholders a hefty 6.05% dividend. Universal Corp. (NYSE: UVV) processes and supplies leaf tobacco and plant-based ingredients worldwide.
The company operates through two segments:
It procures, finances, processes, packs, stores, and ships leaf tobacco for sale to manufacturers of consumer tobacco products.
The company:
Universal also provides value-added services, including:
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