With dividends acting as a steady side income source, investors have an excellent opportunity to expand and diversify their investment portfolio, while reinvesting for future benefits. This article points out some of the great stocks that you could consider investing in and reap the dividend benefits for the rest of your life. Of course, there are financial risks associated with any kind of investment, so it is advised to do your own thorough research and due diligence before making any investment decisions.
1. The Coca-Cola Company (KO)
The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks; water, enhanced water, and sports drinks; juice, dairy, and plant-based beverages; tea and coffee; and energy drinks. This company was founded back in 1892. They have a Market Cap of $241 billion, with a 52 week low of $48.11 and 52 week high of $57.56. The company has P/E ratio of 27.51 and an EPS of $2.03. Their ROE is quite high and sits at 39.72%. Looking back at the 1 year chart, we can see a consistent growth in their share price over the year, with significant spikes in 2021.
The Coca-Cola Company are a dividend aristocrat, which means they have been growing and paying the quarterly dividend every single year for over 25 years, which is very impressive. They have a 59-year growth streak in terms of how many years they have been growing the dividend consecutively, and they are currently paying an attractive yield of 3.03%. So we can safely say that Coca-Cola is not only iconic, it’s a Dividend King.
Coca-cola is good for long term investors looking for strong dividends and steady appreciation. You are not going to see any strong growth out of this company, but it is going to be a very steady and consistent investment.
2. 3M Company (MMM)
3M Company is a Minnesota mining and manufacturing company founded back in 1902 that operates through four business segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. 3M have a Market Capitalization of $103.41 Billion with a 52 week low of $163.38 and 52 week high of $208.95. This is another dividend aristocrat, which has been growing their dividend every single year for 60 years now. Right now, they have a dividend sitting at 3.30%. 3M is considered to be a conglomerate, which consists of a number of small companies or brands under one name. They make things like industrial adhesives and tapes, electronic materials solutions; automotive and aerospace, medical and surgical supplies, and so on. This indicates that the company is very well diversified in the consumer products division and B2B. Some of the industries that they serve are cyclical in nature. So, there are some ups and downs with their share price but they do have an attractive dividend yield above 3% every year.
3. AT&T Inc. (T)
AT&T is the largest telecommunications company in the United States and they have a Market Capitalization of just over $172 Billion. The company is surprisingly only 38 years old, having being born in 1983. The company operates in the several business segments within telecommunication sector, those being mobility, wireless devices, entertainment for TV, video, internet and voice for residential customers. And finally, business wireline as they call it providing IP based services to their business customers.
One of the reasons why a lot of people are attracted to AT&T as an investment is because of their mouth-watering dividend payments. Currently, AT&T’s dividend yield is sitting at about 8.62% which is far above most dividend paying companies and along with that, they have had a solid track record of growth in those dividend payments ever since 2004 and continued to grow even during the great recession of 2008. This would provide a lot of stability in one’s portfolio because they are the largest telecom provider in the United States and they have a very highly recurring revenue.
However, AT&T have reported to hit a trough of $25.01 earlier in the session, the lowest since 2010. Its shares slumped to the lowest level in more than a decade as investors continue to re-price the group’s shift in focus from media assets to telecoms while adjusting to lower payout ratios ahead of its third quarter earnings. AT&T has planned the $43 billion merger of its media division with Discovery (DISCA) while reducing its dividend payout ratio in the recent times.
4. The Procter and Gamble (PG)
The Procter & Gamble Company is a company founded back in 1837 that provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. It operates in five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. They have a current Market Cap sitting at $359.75 Billion. PG are also a dividend aristocrat and they have been increasing the quarterly dividend every single year for 50 years. Currently their dividend yield is sitting at 2.33%. Their total revenue jumped from $70,950,0000 in 2020 to $76,118,000 in 2021.
The Procter & Gamble Company is a solid choice for long term investors looking for strong dividends and also looking to add consumer product good staples to their portfolio. The other thing that’s noteworthy about this company is that they have a massive portfolio of brands that include a lot of products like conditioners, shampoos, styling aids, and treatments, and antiperspirants and deodorants, personal cleansing, herbal essences, and so on, that many of us use every single day.
5. Altria Group, Inc. (MO)
Altria Group is a company that sells and manufactures cigarettes, oral tobacco products, and wine in the United States. Right now, Altria is trading at $44.08, with a 52 week low of $39.60 and a 52 week high of $52.59. They have a Market Cap of $80 billion and they have a P/E ratio of 29.50, which is very high. Their EPS is $1.49 and they have a very high dividend yield of 8.17%. Smokable products are the largest segment of Altria and revenue growth has been substantial as well as their increase in net income in 2020. Their revenue of 2021 has also been quite high so far. The company’s stock has a very generous dividend yield of 8.17% but with high dividend comes a bit more risk. Altria is a relatively safe stock given its dividend yield. In fact, the company is undervalued of how high their dividend payment is. From 2012-2019, its operating cash flow went from $4 billion to almost $8 billion and this resulted in its dividend doubling to $3.25. In 2020, they raised their dividend once again. This shows that even in the pandemic, people are still buying tobacco. Tobacco business is not a glamorous company but a great one to invest in.
Tobacco companies are actually not allowed to advertise their products so a company like Altria has a big advantage over new comers. It is quite obvious that less and less people smoke these days but Altria is still able to raise prices without altering its demand. Therefore, it would be wise to keep an eye out for Altria as it’s a high dividend paying stock.
6. TC Energy Corporation (TRP)
TC Energy is a part of transportation and warehouse sector and they are involved in the pipeline transportation for the natural gas industry. The company builds and operates 93,400 km network of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses. Right now, TRP is trading at $48.68 with a 52 week low of $40.11 and a 52 high of $55.34. Looking at their 1 year price chart, we can see that after a steep drop during the pandemic, it has started to get its pace back up since March 2021 with some highs and lows towards the end of November 2021. It shows that the prices have hovered between $40 to $50. Currently, they have a Market Cap of $47.7 billion, a P/E ratio of 32.65, EPS of $1.49 and a generous dividend of 5.77%.
One reason why TC Energy is such an attractive stock because they have increased both profits and cash flow throughout its history, despite having shocks to the system. For example, the demand for oil during the pandemic was down a lot but the company was able to maintain profits that was actually equal to 2019. TRP’s dividend yield has increased for the past 20 years. This is why we can expect this company to be a relatively safe dividend stock to invest in.
7. Verizon Communications Inc. (VZ)
Verizon Communications Inc. is the biggest telecommunications company that offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Verizon is trading at a $51.66 with a 52 week low of $50.65 and a 52 week high of $61.95. The company has a Market Cap of $213 billion, a P/E ratio of 9.71 and a dividend yield of 4.96%. They have a quite strong Profit Margin of 16.42% and a very good ROE of 31.17%. Pleasingly, Verizon Communications has a superior ROE than the average (14%) in the Telecom industry. During 2020, Verizon investments included $18.2 billion for capital expenditures. The company stated that their focus for the year included further expansion of our 5G Ultra Wideband Network in new and existing markets including the densification of their network.
2021 is the 15th consecutive year Verizon’s Board has approved a quarterly dividend increase. Chairman and CEO Hans Vestberg said, “We continue to deliver value to our shareholders as we execute our multi-purpose network strategy and grow the top and bottom lines.” Verizon has approximately 4.1 billion shares of common stock outstanding. The company made approximately $5.2 billion in cash dividend payments in the first half of 2021.
Overall, Verizon has excellent potential in the future. It is a safe stock that investors love for the added bonus of its relatively good dividend.
8. Horizon Technology Finance Corp. (HRZN)
Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments in the United States. As the name implies, Horizon is a financing and investing company that primarily targets the tech sector. Right now, HRZN is trading at $17.05 with a 52 week low of $12.23 and a 52 week high of $19.08. The company has a market cap of $348.28 million and is known for its high dividend yield over the years. At present, Horizon is focused on firms including rare disease treatment provider Castle Creek Biosciences Inc. and respiratory device manufacturer CSA Medical Inc. to name a few. These kinds of development-stage drug companies or specialized medical device companies come with risk, but they can be very lucrative if and when they succeed in their niches. Horizon Technology Finance Corp. is a reliable stock, thanks to a diversified portfolio that helps smooth out some of the volatility you can see in individual investments. In fact, HRZN is up 30% so far in 2021 to outperform the S&P 500 on top of offering a generous monthly payout to shareholders.
9. International Business Machines Corporation (IBM)
Founded in 1911 in the United States, International Business Machines Corporation is a company that provides integrated solutions and services worldwide. IBM is currently trading at $116.73 with a 52 week high of $112.20 and a 52 week high of $146.12. They are currently sitting at a Market Cap of $104.6 billion and giving out a generous dividend of 5.62%.
International Business Machines Corp. continues to transform itself into more of a cloud company. It has increasingly stood out as a hybrid cloud leader since acquiring Red Hat in 2019. Despite its revenue growth struggles, IBM continues to excel in generating cash. Over the last 12 months, it reported a free cash flow of about $9.7 billion, enough to easily cover the $5.8 billion in dividend costs over that period. Additionally, IBM holds dividend aristocrat status, having increased its payout for 26 consecutive years. This trend could prove profitable for the investors who wish to buy its stocks.
10. Annaly Capital Management, Inc. (NLY)
Annaly Capital Management, Inc., a company founded in 1996 based in New York, is a diversified capital manager, invests in and finances residential and commercial assets. Right now, NLY is trading at $8.46 with a 52 week low of $7.97 and a 52 high of $9.64. They have a Market Cap of 12.2 billion and a profit margin of whopping 63.59% which is quite phenomenal. Looking at their 1 year price chart, we can notice that their price rose and spiked in May 2021, but started declining for the latter half of 2021. However, Annaly Capital Management is offering a mouthwatering yield of 10.40%.
The company’s investment strategy is driven by a prudent selection of assets and effective allocation of capital to achieve better returns. Annaly Capital offers an intriguing dividend yield of 10% that seems to be safe for the foreseeable future.
11. RioCan Real Estate Investment Trust (RIOCF)
RioCan is one of Canada’s largest real estate investment trusts. REIT’s typically have high dividend yields and are built for passive income for investors. They are a great way to expose yourself to real estate without having to actually go out and buy homes and rent them out yourself. This is a great stock to add into your dividend portfolio because the dividend yield and future prospects of this business is astonishing. RIOCF is currently trading at $17.69 with a 52 week low of $12.53 and a 52 week high of $19.17. They’re sitting at a Market Cap of $5.69 billion with a profit margin of 39.43%. What really makes this stock attractive is its juicy dividend yield of 4.23%. Even during the great recession of 2008, they have successfully maintained their dividend and didn’t lower it at all. The great recession was created due to a mortgage crisis. So, the fact that a real estate investment trust maintained its dividend during that time is so comforting.
All in all, this is a great dividend yielding business for shareholders. They also pay their dividend on a long term basis. So, this is a long income stock.
12. New Residential Investment (NRZ)
New Residential Investment is a mortgage REIT. It provides capital and services to the mortgage and financial services industries. The company invests in assets with stable, long-term cash flows. Its investment portfolio includes mortgage servicing-related assets, non-agency securities, residential loans, and other related investments. Right now, NRZ is trading at $11.01, with a 52 week low of $8.98 and a 52 week high of $11.81. The company is sitting at a Market Cap of 5.13 billion.
In Oct 2021, New Residential reported top line revenue of $960 million. This was up more than $500 million from the previous quarter. The company’s EPS was reported as 44 cents, up by 41%. The EPS was the highest in the past 6 quarters. The company reported over $41 billion in total assets, including more than $1.56 billion in available liquidity. But what makes this stock so attractive is because of its huge yields of divided every year. At the moment, NRZ’s dividend yield is sitting at a solid 9.08%. Looking at the company’s incredible dividend yield history, it’s tough not to consider adding it in your portfolio.
13. Exxon Mobil Corporation (XOM)
Exxon Mobil Corporation (NYSE:XOM) is a natural gas company based in the US and operating multinational in the oil and gas industries. It is a renowned company that was formed in 1999 through the merger of Exxon and Mobil. Right now, Exxon Mobil Corp is trading at $61.25, with a 52 week low of $37.97 and a 52 week high of $66.38, and have a Market Cap of $268.74 billion.
The company’s third quarter earnings report shows an EPS of $1.58. Exxon Mobil Corporation (NYSE:XOM) also has a revenue of $73.79 billion, up 59.71% year over year which was higher than the analysts’ prediction by $2.09 billion. Looking at their 1 year price chart, the company has gained about 8.96% in the past six months and 52.96% year to date as well. It is just the right company to invest in to reap the dividend yields every quarter, given the history that ExxonMobil is strongly focused on returning capital to shareholders since over 39 consecutive years.
14. NuStar Energy L.P. (NS)
NuStar Energy L.P. engages in the terminalling, storage, and marketing of petroleum products in the United States and internationally. NS is currently trading at $14.85 with a 52 week low of $13.21 and a 52 week high of $20.73. They have a Market cap of $1.62 billion. But what makes this company so attractive is its whopping 10.31% dividend yield.
NuStar Energy recently published solid third quarter of 2021 results fueled by strong throughputs on its refined products and crude oil pipelines. The President and CEO Brad Barron announced that in the third quarter, they completed the $250 million sale of their Eastern U.S. terminal facilities This made it possible for them to execute their plan to optimize their business and strengthen their balance sheet and focus 100% of their resources on their core assets. As a result, they are now targeting a year-end debt metric below 4.0 times. They also continue to expect to self-fund all of their spending from our internally generated cash flows in 2021, 2022 and beyond. This declaration from the president has surely solidified the company’s future dividend yields.
15. Telefónica, S.A. (TEF)
Telefónica, S.A. is a Spanish telecommunications company founded in 1924 and provides their services in Europe and Latin America. The company’s mobile and related services and products comprise mobile voice, value added, mobile data, Internet, and so on. The company serves 337 million customers. TEF is currently trading at $4.4 with a 52 week low of $3.89 and a 52 week high of $5.17. The company has a market capitalization of $24.80 billion. There are reports that the company is exploring the sale of the fiber network business in Spain for around €15 billion. The sale of the asset will likely be directed towards debt reduction of the firm.
The reason TEF made it into the list is because of its tremendous dividend payments. They currently have a dividend yield of 9.12% and a dividend payout ratio of whopping 21.62%. Analysts have given it a good rating of 1.5, which is between strong buy and buy. And if that wasn’t enough, the average price target is $6.01, which is 36.6% higher than the current share price.