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.
NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.
Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.
Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.
Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.
Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.
In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.
The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.
And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
