Top Income Stocks to Buy for January 6th
AInvestMonday, Jan 6, 2025 4:10 am ET
2min read
O --
TGT --


As we kick off the new year, investors are looking for ways to generate steady income from their portfolios. Dividend stocks are an excellent option, offering a combination of current income and long-term growth potential. Here are five top income stocks to consider for January 6th, based on their strong fundamentals, dividend growth prospects, and attractive yields.



1. Realty Income (O):
Realty Income is a real estate investment trust (REIT) that specializes in retail properties. With a dividend yield of 5.9% and a history of consistent dividend growth, Realty Income is an attractive choice for income investors. The company's occupancy rate of 98.7% and diversified tenant base provide a stable foundation for its dividend payments. Realty Income has increased its dividend for 109 consecutive quarters, demonstrating its commitment to returning value to shareholders.
2. Target (TGT):
Target is a retail giant with a strong dividend track record. The company offers a forward dividend yield of 3.24% and has paid a dividend since 1967. Target's low payout ratio of 47% indicates that the company has room to grow its dividend in the future. The company's focus on exclusive products and growing sales through its Target Circle 360 program should drive long-term growth and support its dividend payments.
3. Philip Morris International (PM):
Philip Morris International is a tobacco company with a high dividend yield of 0.76%. The company has a history of dividend growth, having increased its dividend for 11 consecutive years. Philip Morris International's successful pivot to next-generation products like iQOS and Zyn has driven strong growth in its revenue and earnings, supporting its dividend payments. The company's commitment to returning value to shareholders through dividends and share buybacks makes it an attractive choice for income investors.
4. Sirius XM Holdings (SIRI):
Sirius XM is a satellite radio company with a dividend yield of 4.9%. The company's legal monopoly on satellite radio and strong subscription pricing power support its dividend payments. Sirius XM has increased its dividend for 12 consecutive years, demonstrating its commitment to returning value to shareholders. The company's expanding 5G wireless subscriber base and growing demand for its content should drive long-term growth and support its dividend payments.
5. Pfizer (PFE):
Pfizer is a pharmaceutical company with a dividend yield of 6.5%. The company has a history of dividend growth, having increased its dividend for 11 consecutive years. Pfizer's strong pipeline of drugs and acquisition of cancer-drug developer Seagen support its dividend payments. The company's commitment to returning value to shareholders through dividends and share buybacks makes it an attractive choice for income investors.

In conclusion, these five income stocks offer a combination of strong fundamentals, dividend growth prospects, and attractive yields. By investing in these companies, income investors can generate steady income while participating in their long-term growth. As always, it is essential to conduct thorough research and consider your individual investment goals and risk tolerance before making any investment decisions.
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.