3 Reliable Dividend Stocks And 1 Alternative Investment To Make You Money While You Sleep
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As concerns regarding delayed rate cuts amid looming geopolitical threats pile on, investing in dividend stocks might be the best move for investors seeking passive income. These investments not only provide a steady stream of income but also offer a cushion against market fluctuations.
With surging volatility levels, stability is a coveted asset, making established companies with solid track records particularly enticing. These industry stalwarts boast impressive track records of dividend payments coupled with resilient business models, making them attractive options for those looking to strengthen their portfolios.
Fortis
With roughly $66 billion in total assets, Fortis Inc. (NYSE:FTS) is one of North America’s most prominent regulated gas and electric utility companies. Headquartered in St John’s, Canada, Fortis joined the ranks of “Dividend King” companies in September last year, when it raised its dividend payouts for the 50th consecutive year.
The electric utility giant hiked its quarterly dividends by 4.4% to $0.59 per share, payable from the fourth quarter of 2023. Fortis currently pays $1.70 in dividends annually, yielding 4.36% on its current price. Furthermore, the company forecasts its dividends to grow at a compounded annual growth rate (CAGR) of 4-6% over the next four years. Thus, Fortis stands tall as a reliable income generator, making it a compelling dividend stock for income-focused investors.
“Our Board of Directors declared a fourth-quarter dividend representing a 4.4% increase that will mark 50 years of consecutive increases in dividends paid,” said David Hutchens, President and CEO of Fortis, “Our sustainable regulated growth strategy is focused on delivering cleaner energy that remains affordable and reliable for our customers while supporting annual dividend growth of 4-6% through 2028.”
Fortis’ next dividend payment will be on June 1, 2024, with an ex-dividend date of May 16, 2024.
Altria
Altria Group, Inc. (NYSE:MO), a tobacco industry titan, continues to allure investors with an annual dividend payout of $3.92 per share, translating to a 9.04% dividend yield.
Another Dividend King stock, Altria Group, has raised its dividends consistently 58 times over the last 54 years. The latest dividend hike came in the third quarter of 2023, with Altria raising its quarterly payouts by 4.3% to $0.94 per share.
Despite facing regulatory headwinds, Altria’s resilient business model and enduring cash flows make it a dividend powerhouse. “We made meaningful progress in pursuit of our Vision, and our highly profitable traditional tobacco businesses continued to perform well in a challenging environment,” said Billy Gifford, Altria’s Chief Executive Officer, in the latest earnings release.
Altria also increased its share repurchase program by $2.4 billion, as stated in its first-quarter earnings release, which should further bolster shareholder returns.
Altira’s next dividend will be paid to shareholders on April 30, 2024.
McDonald’s
McDonald’s Corporation (NYSE:MCD), the global fast-food behemoth, not only satisfies appetites but also tantalizes investors with its enticing dividend prospects. The company is widely regarded as a recession-proof stock, as demand for its products tends to remain uniform despite the current economic cycle.
McDonald’s, currently a Dividend Aristocrat, is currently on track to become a Dividend King stock. The company has raised its dividends consistently for 47 years since it began disbursing payouts in 1976. McDonald’s last raised its quarterly dividends by 10% to $1.67 per share in the last quarter of 2023. It pays $6.68 per share in dividends annually, yielding 2.45% on MCD’s share price.
A household name with a loyal customer base, McDonald’s stands as a compelling choice for dividend-seeking investors craving stability in their portfolios.
McDonald’s made its latest dividend payment on March 15, 2024.
Arrived
Real estate has long been a favorite among income investors. Monthly rent provides a steady stream of reliable cash flow, while rising property values provide long-term capital gains. However, the headaches of being a landlord make traditional real estate investments anything but passive. Thanks to Arrived, an investment platform backed by Amazon.com Inc. founder Jeff Bezos, virtually anyone can gain the benefits of real estate ownership without the management burdens. The platform allows retail investors to buy shares of single-family rental properties with as little as $100 while Arrived takes care of the day-to-day operations.
Property shareholders receive monthly dividends, which can be deposited into their bank account or reinvested into more properties. Arrived has paid out over $4.5 million in rental dividends to its investors, including over $1 million in the first quarter of 2024 alone.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
