The Power of Dividends: Past, Present, and Future

And although it’s not a particularly famous company, LEG is in elite company as a long-time dividend machine. Indeed, with more than a half century of dividend increases to its name, Leggett & Platt is one of the S&P 500’s very few Dividend Kings. The most recent increase came in December 2021 when NUE lifted the quarterly disbursement more than 23% to 50 cents per share. Nucor returned nearly $3.53 billion to shareholders in the form of share repurchases and dividend payments during the first 11 months of 2021.

highest dividend-paying stocks in world

With a DRIP, the regular dividend payment an investor receives goes into purchasing more shares of the company stock. We reviewed 20 of the best high dividend stocks for safe income, providing analysis on each company. These high-yield stocks have an average dividend yield above 4%, maintain healthy Dividend Safety Scores, and have long track records of paying dividends without interruption. As one of the best dividend stocks for 2022, Realty Income should prove resilient in the face of an impending recession. With a relatively high dividend yield distributed on a monthly basis, Realty Income can be depended on for monthly income at a time when most equities are struggling to tread water. It is worth noting, however, that Realty Income may also help investors play a little offense.

We also highlight wide-moat-rated Gilead Sciences and narrow-moat-rated Verizon Communications. 4 The Russell 1000 Index measures the performance of the large-cap segment of the US equity universe. It’s a subset of the Russell 3000 Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. 2 Price/earnings “P/E” ratio is the ratio of a stock’s price to its earnings per share. Dividends played a large role in terms of their contribution to total returns during the 1940s, 1960s, and 1970s, decades in which total returns were lower than 10%.

High Yields, Safely

Banks with the largest low-cost deposit bases (i.e. cheap sources of funding to use for lending), most efficient operations, and conservative risk management practices tend to be best off. Main Street’s success starts with its diversified investment portfolio, which consists of more than 150 companies. Its largest investment represents about 3% of the portfolio’s income, and no industry exceeds 7% of the portfolio’s value.

highest dividend-paying stocks in world

Dow is involved in the production of different chemicals that are used in a variety of industries. Its segments include packaging and specialty plastics, industrial intermediates and infrastructure, as well as performance materials and coatings. Our goal is to give you the best advice to help you make smart personal finance decisions.

Nasdaq Futures11,891.75-12.50(-0.11%)

Verizon’s restructuring has made it difficult to parse returns on capital, but we have pegged its wireless returns on invested capital at about 16%, or about 18% excluding goodwill prior to 2021. With heavy investment to acquire additional spectrum in the C-band auction, we estimate wireless returns on capital declined 3-4 percentage points last year, still leaving Verizon ahead of its cost of capital. Mutual funds are distributed by Hartford Funds Distributors, LLC , Member FINRA|SIPC. ETFs are distributed by ALPS Distributors, Inc. .

In 2021 the firm reported record Funds From Operations of nearly $4.5 billion, a 31% increase over the prior year. The company boasts a 93% occupancy rate and anticipates comparable FFO levels for 2022, which should allow it to maintain its healthy dividend. Devon Energy is another oil and natural gas exploration and production company focused primarily on onshore U.S. operations. Like Pioneer, Devon employs a fixed-plus-variable dividend mechanism that saw $1.55 returned to shareholders in the most recent quarter. The company has also retired 4% of shares outstanding via share buybacks and emphasizes their low-debt balance sheet and maintenance operations over costly expansion. The company estimates 2022 will see a base dividend distribution of $0.68 to shareholders with a total variable distribution of approximately $5.

It’s a percentage that represents the income that a company pays stock investors compared to the price of the stock. Dividend yield is just one metric that may help investors to decide whether or not a company’s stock can make a good addition to their portfolios. Dividend yield is the ratio, expressed as a percentage, that compares fusion markets review the annual dividend amount to the stock price. Historically financial firms show why durable earnings coupled with dividend yields can be a powerful combination. T. Rowe Price continues to be a rock-solid source of dividends you can count on. Based in Baltimore, T. Rowe Price provides a variety of asset management services.

Dividend stocks are stocks of companies that make regular distributions to their shareholders, usually in the form of cash payments. Dividend stocks can be useful sources of income, but the best dividend stocks can also be excellent ways to increase your wealth over the long term. Indeed, 67 consecutive years of annual dividend increases is proof positive of the autochartist admiral markets company’s commitment to returning cash to shareholders. Regardless of how the labor market is doing, Cintas is a stalwart when it comes to being one of the best dividend stocks. The company has raised its payout every year since going public in 1983. However, those have been annual distributions up until this year, when the company switched to quarterly payouts.

highest dividend-paying stocks in world

Founded in 1823, it provides electric, gas or steam services to roughly 3.5 million customers in New York City and Westchester County. ConEd also happens to be North America’s second-largest solar power provider, and is investing in electric vehicle charging programs and other green energy endeavors. Income investors certainly don’t need to worry about Sherwin-Williams’ steady and rising dividend stream. The most recent hike came in February 2022 with a 9.1% raise to the quarterly payment to 60 cents per share. Atmos clinched its 36th straight year of dividend growth in November 2022, when it announced an 8.8% increase to 74 cents a share per quarter. WST operates in a critical sector of the healthcare supply chain, manufacturing packaging components and delivery systems for injectable drugs and other medical products.

Investing in Dividend Stocks

As for its origins, Walgreen Co. merged with Alliance Boots – a Switzerland-based health and beauty multinational – in 2014 to form the current company. Walgreens Boots Alliance and its predecessor company have paid a dividend in 359 straight quarters, or more than 89 years. Mutual fund providers have come under pressure because customers are eschewing traditional stock pickers in favor of indexed investments. However, Franklin has fought back in recent years by launching its first suite of passive exchange-traded funds. BRO’s most recent hike was announced in October 2022 – a 12.2% increase in the quarterly distribution to 11.50 cents per share. Learn how much money you need, how to get started, and common pitfalls to avoid.

  • Meanwhile, the biopharmaceutical industry’s robust pipeline should support longer-term growth.
  • And while interest rates are beginning to rise, they’re still low by historical standards, which means dividend-paying stocks continue to offer attractive yields relative to many fixed-income asset classes.
  • The company’s dividend history stretches back to 1920, and the payout has swelled for 60 consecutive years.
  • In 2021, Pioneer paid out a total of only $6.83, which compares to $2.20 in all of 2020 and $1.20 in 2019.
  • And, indeed, the dependable and defensive nature of Clorox’s business has allowed the company to raise its annual dividend for more than four decades.

MCD last raised its dividend in October 2022, when it lifted the quarterly payout by 10% to $1.52 a share. The company’s 10-year compound annual dividend growth rate stands at 7.6%. The company last raised its dividend in November 2022, by 2.1% to 12.25 cents a share per quarter. Ample free cash flow and a reasonable payout ratio should help ensure that the annual dividend increases keep on coming.

Financial Calendars

We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.

Realty Income Corporation is one of the highest dividend stocks on most investors’ watchlists. Otherwise known as “the monthly dividend stock,” Realty Income is a real estate investment trust which has become synonymous security analysis review with consistency and stability. The REIT’s focus on triple net lease assets has resulted in 100 consecutive quarterly dividend increases and 117 payout raises since going public more than 28 years ago.

Dividends can be a great way to give your investment portfolio a boost of income, which is something many people are looking for during periods of high inflation and amid talk of a possible recession. Dividend stocks or dividend funds can help you earn regular passive income from some of the strongest companies in the economy. Investors should continue to monitor each stock to make sure their fundamentals and growth remain on track, particularly among stocks with extremely high dividend yields. The 7 high dividend stocks with Dividend Risk scores of C or better are listed in order by dividend yield, from lowest to highest. A $120,000 investment in stocks with an average dividend yield of 5% creates an average of $500 a month in dividends. So while the companies listed above should make great long-term dividend investments, don’t worry too much about day-to-day price movements.

Leave a Reply

Your email address will not be published. Required fields are marked *