Three Outstanding Dividend-Yielding Stocks Exhibiting Over 5% Growth, Ideal for Long-Term Purchase and Holding for a Minimum of a Decade
Wall Street offers numerous ways to make money, but some methods are more reliable than others. If you're seeking a steady passive income stream or aim to outperform benchmark averages, consider investing in dividend-paying stocks. Companies that commit to returning a portion of their earnings to shareholders operate differently than non-dividend-paying firms. Over the past 50 years, dividend-paying stocks in the S&P 500 index have yielded an average annual return of 9.17%, while non-dividend-paying stocks delivered a paltry 4.27% during the same period.
Three dividend-yielding stocks worth considering as of now are Realty Income, Pfizer, and Altria Group. These stocks offer an average yield of 6.8%. Realty Income, a net lease REIT, has increased its portfolio of commercial real estate since its 1994 IPO and raised its dividend payout every quarter of its publicly traded existence. Despite the subpar 2.5% annual growth in dividend payouts due to inflation and interest rate hikes, Realty Income continues to exhibit growth potential with upcoming lower interest rates in the U.S. and expansion opportunities in Europe.
Pfizer, the pharmaceutical giant, has faced challenges due to the decline in COVID-19 product sales and the upcoming patent cliff for Eliquis. However, Pfizer's 6.7% dividend yield and impressive revenue growth (12% excluding COVID-19 product sales) make it an attractive option for long-term investors. Potential patent-cliff losses could be offset by the success of recently launched cancer treatments and future products.
Altria Group, the tobacco giant, has managed to increase its dividend payout for 59 consecutive years, despite a decline in cigarette sales. The company's focus on raising prices for smokable products and growing sales of non-smokable products (like e-cigarettes) will drive steady adjusted earnings growth in the future. The biggest challenge for Altria remains its dependence on a single product category.
These dividend stocks present attractive investment options for income-focused investors, with their high yields, growth potential, and appeal to long-term investors. Weigh the strengths and weaknesses of each stock, as well as your personal investment goals, before making a decision.
- If you're interested in investing in finance with a focus on passive income, dividend-paying stocks like Realty Income, Pfizer, and Altria Group could be beneficial, offering yields of up to 6.8%.
- Companies that distribute dividends, such as Altria Group, have a track record of consistency, having increased their dividend payouts for 59 consecutive years, even in the face of declining cigarette sales.
- For those seeking to outperform benchmark averages and have a longer-term perspective, investigating dividend-yielding stocks like Pfizer, with its impressive revenue growth and high dividend yield, could be an advantageous investment strategy.
- Investing in Marlboro's parent company, Altria Group, in 2025 could potentially yield a steady stream of income, given the company's focus on raising prices for smokable products and expanding into non-smokable products, aiming to offset challenges in its primary product category.
