The stock market is on a bull run for the record books. But that sword cuts both ways. Is now really the best time to buy growth, when a correction — or worse — may be just around the corner?
If you have some money to invest and you’re not totally convinced that now is the time be stocking up on popular growth stocks, then take a look at these seven elite dividend-paying stocks.
They are in industries that should do very well in coming quarters, so you’ll be part of the economic growth that continues. But they also throw off some very impressive dividends.
You get the best of both worlds with these dividend stocks. You get a hedge from a potential correction of growth-only stocks and you still get a growth kicker as well as a solid dividend. Bottom line, these are great total return plays that are priced well.
Dividend Stocks to Buy: Stage Stores (SSI)
The origin of Stage Stores (NYSE:SSI) dates back to 1920, so its founding companies have seen their fair share of economic ups and downs. But this small department store chain really didn’t start its growth period until the late ‘80s when the initial companies, Beall’s and Palais Royal merged to form Specialty Retailers, which then acquired several other retail chains in the 1990’s and rebranded itself as Stage.
After that, it continued to acquire smaller brand department stores like Peebles, Goody’s and Gordman’s. Instead of building one big Stage Store brand, it kept the regional brand names and continued to operate them with better economies of scale.
That gave them better brand recognition and the loyal client base that they have enjoyed. Plus, each could operate to succeed in its respective markets instead of corporate deciding on one global brand identity.
And it’s working. While major retailers are trying to survive, SSI stock is up 25% year-to-date and it is still delivering a whopping 9.2% dividend yield.
Dividend Stocks to Buy: Genesis Energy (GEL)
Genesis Energy LP (NYSE:GEL) is a U.S. midstream energy company that is focused on onshore pipeline services for offshore oil production. It primarily serves the Gulf of Mexico, drillers from Texas, Louisiana, Alabama and Mississippi.
While most of the interest up to now has been about U.S. shale reserves and midstream companies (basically pipeline companies) shipping oil from the shales to refineries, the offshore production companies have been put in the shadows.
And there’s no reason for it. Offshore production may not be growing like onshore production, but that doesn’t mean the rigs that are producing are shutting down. Far from it.
As long as the economy continues to expand, this is a great sector that’s usually overlooked. GEL stock is up 9% YTD and it delivers a 8.7% dividend.
Dividend Stocks to Buy: Mesabi Trust (MSB)
Mesabi Trust (NYSE:MSB) has been around since 1961. It’s an iron ore miner in Minnesota.
Now, in the past five years, iron ore prices have dropped 50%. But as the global economy grows, ore prices are rising.
Granted the trade wars the U.S. is engaged in aren’t helping stabilize prices since no one is sure if or when tariffs may be levied or countries will have to look for alternative sources.
But the fact is, if global economies grow, there will be a growing demand for industrial metals and that’s good for MSB.
The stock only has a market cap of $370 million, so it can get caught up in momentum trading. It’s up 82% in the past 12 months and just 12% YTD, which likely has to do with looming trade wars. Its 3.1% dividend may not be huge, but it’s solid.
Dividend Stocks to Buy: AT&T (T)
AT&T (NYSE: T) is a dominant telecommunications company with global reach and enormous diversity. Its $236 billion market cap indicates the power it holds in institutional portfolios and the respect it has among its rivals.
The challenge for T moving forward is, how well it can hold together the diversity of businesses that it has cobbled together to compete in the new digital world.
What’s more, it has to find a way to make its content and satellite network stay relevant and competitive. This is going to be a challenge since it has never operated in this space before and managing this division well is crucial to its long-term success.
But as a major market force in this sector, it has time to figured it all out. T stock is off 14% in the past 12 months, which makes it cheap. And the 6.1% dividend is a good, reliable return on your patience.
Dividend Stocks to Buy: Icahn Enterprises LP (IEP)
Source: B64 via Wikimedia (Modified)
Icahn Enterprises LP (NYSE:IEP) is a limited partnership that basically represents the business holdings of activist investor Carl Icahn and his various investment funds.
Set up as an LP, investors are treated as partners and receive net profits in the form of dividends. Icahn is all about unlocking value from the companies he invests in. And he usually makes sure that when he invests, he gets a say as to how the companies are structured and run.
He’s certainly a controversial figure, but that isn’t necessarily bad. YTD, IEP is up 44% and it’s delivering an impressive 9% dividend.
And his investment portfolio is pretty focused — it’s about the engines of the traditional economy like healthcare, transports, gaming and energy. IEP sticks to what it knows best and its success is evident.
Dividend Stocks to Buy: United-Guardian (UG)
United-Guardian (NYSE:UG) is a small company that has been around since 1942. Its market cap is only $85 million.
UG manufactures pharmaceuticals and specialty ingredients for health and personal care products. Its main markets are North and South America, China and some of Europe.
Its recent R&D efforts have focused on building up its supply of “natural” and “organic” products.
The personal care sector is growing rapidly in Asia and in emerging markets in the Americas as well. As a well-respected player in this space for so long, UG is expanding its book of business, as well as its markets. It’s a low-key niche player with a big future.
UG stock is up 8% in the past 12 months and provides a solid 5.3% dividend.
Dividend Stocks to Buy: Dominion Energy Midstream Partners LP (DM)
Source: Andy Arthur via Flickr
This limited partnership focuses on the Dominion’s natural gas operations. Dominion built out a liquified petroleum gas (LPG) export facility in Cove Point, Md. This is only one of a few export facilities in the U.S.
It spun this entire operation off to DM, which now focuses on moving the gas from its fields to prep it and deliver it for export. Given the huge opportunities in exporting natural gas to Europe and Asia, this will be a great long-term opportunity.
Right now, the cost of building the facility will take a while to pay back, but the potential is huge. DM has made a comeback in the past quarter and it is trading at attractive levels. And the 8.4% dividend will help buy investors’ patience. Just bear in mind, it’s an energy stock and as such, it may be volatile.
Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.