US Dividend Stocks Spotlight: WaFd and 2 Others
Wednesday, Dec 18, 2024 10:19 am ET
4min read In the current uncertain market environment, investors are seeking stable and reliable income sources. Dividend stocks have emerged as a popular choice, offering a combination of income and growth potential. This article highlights three dividend-paying stocks: WaFd Bank, Exxon Mobil, and Johnson & Johnson, and examines their dividend sustainability, competitive advantages, and risk profiles.
WaFd Bank, a regional bank based in Washington, has seen its dividend yield fluctuate over the past five years. In 2019, its yield was around 2.5%, but it peaked at 4.5% in 2020 due to market volatility. Since then, it has stabilized at around 3.5%. Johnson & Johnson, a pharmaceutical giant, has maintained a consistent dividend yield of approximately 2.5% over the same period. Meanwhile, PepsiCo, a beverage and snack food company, has seen its yield rise from 2.5% in 2019 to 3.5% in 2024, reflecting its strong financial performance.
WaFd, Inc. (WAFD), a Washington-based bank holding company, is one of the top dividend stocks to consider. With a trailing dividend yield of 3.5%, WaFd offers a competitive payout compared to other regional banks like Umpqua Holdings (UMPQ) at 2.8% and Pacific Premier Bancorp (PPBI) at 2.7%. WaFd's dividend yield is also higher than the average for the S&P 500 Financials sector, which is around 2.5%. The company's strong balance sheet and consistent earnings growth contribute to its ability to maintain and increase its dividend. Additionally, WaFd's focus on expanding its loan portfolio and increasing its net interest margin should support its dividend growth in the future.
Another dividend stock to consider is PepsiCo (PEP), which has a trailing dividend yield of 3.4%. PepsiCo's dividend yield is higher than that of its main competitor, Coca-Cola (KO), which has a yield of 2.9%. PepsiCo's dividend yield is also higher than the average for the S&P 500 Consumer Staples sector, which is around 2.5%. PepsiCo's strong brand portfolio, global reach, and consistent earnings growth contribute to its ability to maintain and increase its dividend. The company's focus on innovation and cost management should also support its dividend growth in the future.
A third dividend stock to consider is Johnson & Johnson (JNJ), which has a trailing dividend yield of 2.7%. JNJ's dividend yield is higher than that of its main competitor, Procter & Gamble (PG), which has a yield of 2.5%. JNJ's dividend yield is also higher than the average for the S&P 500 Health Care sector, which is around 1.5%. JNJ's strong brand portfolio, global reach, and consistent earnings growth contribute to its ability to maintain and increase its dividend. The company's focus on innovation and cost management should also support its dividend growth in the future.
In conclusion, WaFd, PepsiCo, and Johnson & Johnson are all attractive dividend stocks with competitive yields compared to their respective sectors. Their strong balance sheets, consistent earnings growth, and focus on innovation and cost management should support their dividend growth in the future. Investors looking for income and growth should consider these dividend stocks as part of a diversified portfolio.
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.
