26 Best Stocks For Dividends
In this article, we discuss 26 best stocks for dividends. You can skip our detailed analysis of dividend stocks and their previous performance, and go directly to read 10 Best Stocks For Dividends.
As we near the close of 2023, investors are actively diversifying their portfolios by exploring various investment strategies. One noticeable trend this year has been the divergence in performance among different asset classes. While dividend stocks might not have kept pace with some of the more rapid-growth investments in recent months, their historical track record of stability and consistent returns remain a compelling factor for many investors. Over the years, dividends have played a big role in boosting overall investment gains, especially when people reinvest the money they receive from them. Since 1970, around 70% or more of the total profits from global stocks have come from compounded dividends.
Despite a lackluster performance in the current year, analysts hold an optimistic view regarding the prospects of dividend stocks. Ryan Lewenza, a senior vice president and portfolio manager at Turner Investments of Raymond James, discussed with BNN Bloomberg his preferred dividend sectors amidst the challenges posed by recent fluctuations in interest rates. He said that dividend stocks usually perform well during periods of low-interest rates. So, if those interest rates are to come down, then these beaten-up dividend stocks should start to rally. He further said that the telecom and the bank sectors currently have some of the best dividend stocks, offering juicy yields. In addition to this, dividend stocks are attractively valued in this environment. Here are some comments from the analyst:
“The Dow Jones Dividend Select Index has returned 8.8% annually in the last 20 odd years. That is 2% higher than TSX. So, you always need dividend stocks, especially in 2024.”
Mr. Lewenza’s focus on long-term returns from dividend stocks aligns with findings from various reports reinforcing the value these stocks bring to investors over extended periods. A report from Middlefield examined the S&P 500’s total return from December 31, 1992, to December 31, 2022, breaking it down into two key components. Of the impressive aggregate total return of +1,481%, 47% was attributed to dividends and their reinvestment. The remaining 53% was derived from price appreciation. This breakdown underscores the significant contribution dividends make to overall returns, comprising almost half of the total returns over this period.
Some of the best dividend stocks that are gaining traction among investors include The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP). These companies not only offer consistent dividends but also demonstrate a commitment to long-term growth and financial stability. Their ability to generate steady cash flows, adapt to market changes, and maintain a solid dividend track record positions them favorably among investors seeking reliable income streams amidst market fluctuations. In this article, we will further discuss some of the best stocks for dividends.
Photo by Annie Spratt on Unsplash
Our Methodology:
To compile this list, we thoroughly reviewed reputable sources such as Forbes, Morningstar, Barron’s, and Business Insider. From their latest articles, we gathered the stocks they collectively favored. Additionally, we assessed the sentiment of hedge funds for each stock using Insider Monkey’s Q3 2023 database. The stocks are arranged in ascending order based on the number of hedge funds that hold stakes in these companies. While our article focuses on the best stocks for dividends, Insider Monkey also monitors the movements of corporate insiders and hedge funds. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points since 2014 (see the details here). That’s why we encourage our readers to delve into the specifics and nuances of our research.
26. Federal Realty Investment Trust (NYSE:FRT)
Number of Hedge Fund Holders: 15
Federal Realty Investment Trust (NYSE:FRT) is an American real estate investment trust company that specializes in the ownership, management, and development of high-quality retail and mixed-use properties. The company declared a quarterly dividend of $1.09 per share on November 2, which was in line with its previous dividend. It maintains an impressive 56-year streak of consistent dividend growth, which makes FRT one of the best stocks for dividends. The stock has a dividend yield of 4.22%, as of December 21.
At the end of the third quarter of 2023, 15 hedge funds owned stakes in Federal Realty Investment Trust (NYSE:FRT), as per Insider Monkey’s…
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