5 Dividend Stocks to Double Up on Right Now -- Plus Some Dividend ETFs
Thursday, Oct 31, 2024 6:50 am ET
1min read Investing in dividend stocks can be a lucrative strategy, especially for those seeking a steady income stream and long-term growth. This article highlights five dividend stocks and some dividend ETFs that are worth considering for your portfolio.
1. ExxonMobil (XOM)
ExxonMobil is a well-established energy company with a strong track record of dividend growth. With a current yield of 3.2%, it offers a solid income stream. The company has increased its dividend annually for over 38 years, demonstrating its commitment to returning value to shareholders. Additionally, ExxonMobil's strong balance sheet and stable earnings make it a reliable choice for income-focused investors.
2. Kenvue (KVUE)
Kenvue, the consumer products division spun off from Johnson & Johnson, boasts a dividend yield of 3.7%. The company's strong brand portfolio, including Listerine, Tylenol, and Neutrogena, provides a solid foundation for dividend growth. Although sales have been stagnant in recent quarters, Kenvue's focus on innovation and its position within everyday consumer health products bode well for future growth.
3. Ford (F)
Ford is a leading automaker with a dividend yield of 5.4%, one of the highest in the industry. The company has increased its dividend for over 40 years, demonstrating its commitment to returning value to shareholders. Ford's strong balance sheet and the popularity of its F-150 pickup truck make it a reliable choice for income-focused investors.
4. Dover Corp. (DOV)
Dover Corp. is a diversified manufacturer with a history of consistent dividend growth. The company has increased its dividend for 68 consecutive years, with an average annual increase of 9.4%. Dover Corp.'s strong free cash flow generation and stable earnings make it an attractive choice for income-focused investors.
5. Parker-Hannifin (PH)
Parker-Hannifin, a motion and control technologies company, has increased its dividend for 68 consecutive years, with an average annual increase of 10.4%. The company's strong free cash flow generation and stable earnings make it a reliable choice for income-focused investors.
As for dividend ETFs, consider the following options:
Vanguard Dividend Appreciation ETF (VIG)
VIG focuses on dividend growth, selecting companies that have consistently increased dividend payments for at least a decade. It has a lower yield of 1.8% but a lower expense ratio of 0.06%.
Vanguard High Dividend Yield ETF (VYM)
VYM targets high-yield dividend-paying companies, with a yield of 3.0% and the same expense ratio as VIG.
Schwab US Dividend Equity ETF (SCHD)
SCHD holds companies based on the quality and sustainability of their dividends, offering a yield of 3.6% and a similar expense ratio.
In conclusion, dividend stocks and ETFs can be a valuable addition to any portfolio, offering a steady income stream and long-term growth potential. The five dividend stocks and ETFs highlighted in this article provide a mix of high yields, dividend growth, and stability, making them worth considering for income-focused investors.
1. ExxonMobil (XOM)
ExxonMobil is a well-established energy company with a strong track record of dividend growth. With a current yield of 3.2%, it offers a solid income stream. The company has increased its dividend annually for over 38 years, demonstrating its commitment to returning value to shareholders. Additionally, ExxonMobil's strong balance sheet and stable earnings make it a reliable choice for income-focused investors.
2. Kenvue (KVUE)
Kenvue, the consumer products division spun off from Johnson & Johnson, boasts a dividend yield of 3.7%. The company's strong brand portfolio, including Listerine, Tylenol, and Neutrogena, provides a solid foundation for dividend growth. Although sales have been stagnant in recent quarters, Kenvue's focus on innovation and its position within everyday consumer health products bode well for future growth.
3. Ford (F)
Ford is a leading automaker with a dividend yield of 5.4%, one of the highest in the industry. The company has increased its dividend for over 40 years, demonstrating its commitment to returning value to shareholders. Ford's strong balance sheet and the popularity of its F-150 pickup truck make it a reliable choice for income-focused investors.
4. Dover Corp. (DOV)
Dover Corp. is a diversified manufacturer with a history of consistent dividend growth. The company has increased its dividend for 68 consecutive years, with an average annual increase of 9.4%. Dover Corp.'s strong free cash flow generation and stable earnings make it an attractive choice for income-focused investors.
5. Parker-Hannifin (PH)
Parker-Hannifin, a motion and control technologies company, has increased its dividend for 68 consecutive years, with an average annual increase of 10.4%. The company's strong free cash flow generation and stable earnings make it a reliable choice for income-focused investors.
As for dividend ETFs, consider the following options:
Vanguard Dividend Appreciation ETF (VIG)
VIG focuses on dividend growth, selecting companies that have consistently increased dividend payments for at least a decade. It has a lower yield of 1.8% but a lower expense ratio of 0.06%.
Vanguard High Dividend Yield ETF (VYM)
VYM targets high-yield dividend-paying companies, with a yield of 3.0% and the same expense ratio as VIG.
Schwab US Dividend Equity ETF (SCHD)
SCHD holds companies based on the quality and sustainability of their dividends, offering a yield of 3.6% and a similar expense ratio.
In conclusion, dividend stocks and ETFs can be a valuable addition to any portfolio, offering a steady income stream and long-term growth potential. The five dividend stocks and ETFs highlighted in this article provide a mix of high yields, dividend growth, and stability, making them worth considering for income-focused investors.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
