3 Dividend Stocks to Double Up on Right Now

In today's volatile market, investors seek reliable, income-generating investments. Dividend stocks offer a compelling solution, providing steady returns and the potential for capital appreciation. With the recent 50-basis-point rate cut by the Federal Reserve, dividend stocks have become even more attractive. Let's explore three dividend stocks to consider right now: Realty Income, Innovative Industrial Properties, and AT&T.


1. Realty Income (O)
Realty Income is a real estate investment trust (REIT) specializing in single-tenant properties rented on a net lease basis. With a 5.1% dividend yield, Realty Income offers an attractive income opportunity. Its stable, long-term leases with prominent tenants like Walmart ensure a steady stream of income. Despite higher interest costs punishing the stock recently, the rate cut offers significant relief, potentially catalyzing a recovery in the stock price. Realty Income's ability to grow profits and increase its monthly dividend throughout higher interest rate environments further supports its long-term sustainability.


2. Innovative Industrial Properties (IIP)
Innovative Industrial Properties is an unusual REIT that serves medical cannabis growers. With a 5.6% dividend yield, IIP offers a compelling income opportunity. Its insulation from industry volatility, coupled with the potential for industry growth, supports consistent dividends. The proposed rescheduling of cannabis in the U.S. could further enhance IIP's prospects, making it an attractive investment in the growing medical marijuana sector.


3. AT&T (T)
AT&T, a telecommunications giant, offers a 5.2% dividend yield. Despite past missteps in acquisitions, AT&T's strong market share, demand for higher-tier plans, and cost savings from the 5G upgrade cycle support its ability to maintain and grow its dividend. Its $19 billion in free cash flow over the last year helped it cover $8 billion in dividend costs, further strengthening its balance sheet. AT&T's improving business and debt reduction should benefit both growth and income investors.


In conclusion, dividend stocks like Realty Income, Innovative Industrial Properties, and AT&T offer attractive income opportunities in the current interest rate environment. Their unique business models and industry positions support consistent and growing dividends, making them compelling investments for income-focused portfolios. As the market continues to evolve, investors should consider these dividend stocks to capitalize on undervaluations created by market perceptions and secure steady returns.