7 Dividend Stocks to Buy for Income and Stability in 2024
Want to generate extra income without working extra hours? Dividend stocks allow many investors to fulfill that goal. These stocks often give out dividends every quarter that you can reinvest or use to cover various expenses. Most corporations distributing dividends to their investors hike their dividend payouts each year.
However, some dividend stocks are better than others. Choosing the wrong stocks can result in net losses despite high cash flow. It’s also possible to end up with stocks that do not provide enough income to cover your expenses.
Investors looking to build up their dividend portfolios may want to consider these seven stocks.
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Procter & Gamble (PG)
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Procter & Gamble (NYSE:PG) is a reliable business that offers many essential products for households. The company has several well-known brands under its umbrella, including Gillette, Braun, Head & Shoulders, Old Spice, Dawn Ultra, and others.
The company has the product line to be more resistant to economic slowdowns. Procter & Gamble has high-profit margins that exceed 20% in the first quarter of fiscal 2024. During that quarter, net sales increased by 6% year-over-year while net income went up by 15% year-over-year.
Procter & Gamble has been a reliable dividend payer for 133 consecutive years since its incorporation in 1890. The firm has increased its dividend for 67 consecutive years. The stock currently offers a 2.55% dividend yield at a 24 P/E ratio.
Shares have inched up by 5% over the past year and are up by 58% over the past five years. Procter & Gamble isn’t the type of stock to outperform the market, but the firm does a great job at delivering income and stability.
Stag Industrial (STAG)
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Stag Industrial (NYSE:STAG) is a real estate investment trust that prioritizes storage facilities and warehouses. The firm offers a monthly dividend and a yield that is close to 4%.
The stock has appreciated by 8% over the past year and has rewarded shareholders with a 40% gain over the past five years. Shares are roughly 20% removed from their all-time high.
Stag Industrial owns 568 buildings in 41 states. The firm has many big-name tenants that will stick around for years. That results in stable cash flow for investors.
The REIT has accumulated capital and is in a position to capitalize on attractive opportunities. Leadership’s efforts have paid off for the company.
Core funds from operations reached $0.59 per diluted share for the third quarter of 2023. That’s a 3.5% year-over-year increase. Cash net operating income increased by 6.7% year-over-year.
Stag Industrial currently has a 97.6% occupancy rate. The firm is putting its square feet to good use and is rewarding investors.
NextEra Energy (NEE)
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NextEra Energy (NYSE:NEE) is a top clean energy company that is based in Florida. The firm owns Florida Power & Light Company which is the largest electric utility company in the United States.
The firm has a large presence in Florida and also has nuclear power units in New Hampshire and Wisconsin.
NextEra Energy stock slumped in 2023 along with most of the renewable energy sector. Shares have dropped by 31% over the past year but have gained 32% over the past five years. The sharp correction has brought the stock’s P/E ratio to 15. The corporation also offers a 3.30% dividend yield due to the pullback.
Adjusted earnings per share growth came in at 10.8% year-over-year during the first three quarters of 2023. Revenue increased by 6.8% year-over-year.
The firm has a history of increasing dividend payments. The company hiked its quarterly dividend payout from $0.425 to $0.4675 which represents a 10% year-over-year increase.
Qualcomm (QCOM)
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Qualcomm (NASDAQ:QCOM) stock experienced a strong recovery near the end of October that has taken shares up by over 40% ever since. It helped the stock net a 16% gain over the past year. The stock has almost tripled over the past five years.
The semiconductor stock has been a long-term winner and offers a 2.10% dividend yield for new investors. The stock trades at a 23 P/E ratio.
Many semiconductors are rallying on the back of a successful quarter from Taiwan Semiconductor Manufacturing (NYSE:TSM). The firm indicated growth will return in the first quarter, which offers a hint of what investors can expect for Qualcomm.
The firm can also benefit from artificial intelligence tailwinds due to its Snapdragon X Elite. Continued innovation in this space can help Qualcomm stock march higher. However, it offers a decent dividend with a high growth rate. The firm raised its dividend by 6.7% in 2023.
National Storage Affiliates Trust (NSA)
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National Storage Affiliates Trust (NYSE:NSA) is a self-storage firm that operates many real estate properties. The firm helps consumers store their extra clutter and makes consistent cash flow with less maintenance than rental properties.
Shares are down by 2% over the past year but came back to life at the end of October. The flat performance has resulted in an enticing 6% dividend yield. While the past year wasn’t the best one for National Storage Affiliate Trust, shares have gained 38% over the past five years.
Revenue and earnings growth were both on the upswing in the third quarter of 2023. The company reported 7.2% year-over-year net income growth and revenue grew by 1.1% year-over-year.
National Storage Affiliates Trust isn’t a growth stock. However, it has many tenants who make monthly payments to store their valuables. The company is still expanding and acquired two wholly-owned self-storage properties in the third quarter. The properties cost $25.4 million.
JPMorgan (JPM)
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JPMorgan (NYSE:JPM) seems to be the top-performing large bank stock. The firm can deliver gains for investors when most other banks see losses. Shares are up by 24% over the past year and have gained 65% over the past five years.
JPMorgan offers investors a 2.50% dividend yield and currently trades at a 10 P/E ratio. The financial institution closed out the fourth quarter of fiscal 2023 with a 12% year-over-year increase in net revenue. JPMorgan grew its top line while having a 26% net profit margin.
While revenue growth and high-profit margins can fuel growth, JPMorgan is also taking matters into its own hands. The corporation bought back $2 billion worth of shares in the fourth quarter of fiscal 2023. JPMorgan also distributed $3.1 billion in dividends which came to $1.05 per share. That’s a 5% year-over-year increase for the firm’s dividend.
Some bank stocks offer higher yields, but few of them perform at the same level as JPM stock.
Delta Air Lines (DAL)
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Delta Air Lines (NYSE:DAL) recently reinstated its quarterly dividend which is at $0.10 per share. The company’s quarterly dividend was $0.4025 per share before the pandemic halted travel.
Delta is likely to raise the dividend considerably in the future. The airliner reported record revenue in 2023 and a large profit as well. As more people travel again, the company can increase its dividend more aggressively and get closer to its pre-pandemic level.
Shares are still down by 22% over the past five years. The company is likely to reclaim its pre-pandemic levels and raise its dividend over time. Substantial raises may have to wait because of a trimmed earnings forecast, but investors should expect a higher dividend in the middle of 2024.
While investors wait, they can benefit from accumulating shares in a stock with a 5 P/E ratio. Meaningful long-term growth is out of the plans. However, investors seeking income and stability can benefit from Delta stock.
On this date of publication, Marc Guberti held a long position in QCOM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.
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