Dividend-paying companies such as AvalonBay Communities and Xcel Energy can diversify your portfolio cash flow by paying constant and large dividends. These stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. Here are other similar dividend stocks that could be valuable additions to your current holdings.
AvalonBay Communities, Inc. (NYSE:AVB)
As of December 31, 2017, the Company owned or held a direct or indirect ownership interest in 288 apartment communities containing 84,158 apartment homes in 12 states and the District of Columbia, of which 21 communities were under development and nine communities were under redevelopment. Started in 1978, and now led by CEO Timothy Naughton, the company provides employment to 3,112 people and with the stock’s market cap sitting at USD $21.25B, it comes under the large-cap category.
AVB has a decent dividend yield of 3.77% and is paying out 89.33% of profits as dividends , with an expected payout of 145.32% in three years. AVB’s dividends have seen an increase over the past 10 years, with payments increasing from US$3.57 to US$5.88 in that time. They have been consistent too, not missing a payment during this 10 year period. The company has been a strong performer in recent years, averaging an earnings growth of 27.28% consistently over the past five years. Continue research on AvalonBay Communities here.
Xcel Energy Inc. (NASDAQ:XEL)
Xcel Energy Inc., through its subsidiaries, engages primarily in the generation, purchase, transmission, distribution, and sale of electricity in the United States. Started in 1909, and headed by CEO Benjamin Fowke, the company size now stands at 11,105 people and has a market cap of USD $21.86B, putting it in the large-cap stocks category.
XEL has a sizeable dividend yield of 3.28% and has a payout ratio of 63.78% . XEL’s last dividend payment was US$1.44, up from it’s payment 10 years ago of US$0.92. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. More on Xcel Energy here.
Kellogg Company (NYSE:K)
Kellogg Company, together with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods. Established in 1906, and now run by Steven Cahillane, the company employs 33,000 people and with the market cap of USD $23.40B, it falls under the large-cap category.
K has a good dividend yield of 3.12% and has a payout ratio of 58.14% . In the last 10 years, shareholders would have been happy to see the company increase its dividend from US$1.24 to US$2.16. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. More on Kellogg here.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.