Dividend Stocks

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>>> Coca-Cola (NYSE:KO), an iconic brand with a century-long history, is a staple income stock. Known for its robust and diversified product lineup, Coca-Cola has consistently delivered strong financial performance. Business tycoon and investment guru Warren Buffett considers Coca-Cola his "Secret Sauce," referring to its dividend prowess, as Berkshire Hathaway generates millions annually in payouts.

https://finance.yahoo.com/news/3-must-dividend-stocks-according-180056727.html

Coca-Cola currently pays $1.94 in dividends annually, yielding 2.85% on the current price. The company has raised its dividends for 63 years, making it a Dividend King.

Citigroup gave Coca-Cola a Buy rating with a price target of $75 last month, indicating a potential upside of over 10%. Argus Research also gave the company a Buy rating with a price target of $72, indicating a potential upside of nearly 6%.

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Pepsico - >>> People won't stop buying groceries

https://finance.yahoo.com/news/3-soaring-stocks-hold-next-131700831.html

Food and beverages are a no-brainer for long-term investors. Companies like PepsiCo (NASDAQ: PEP) may not set the world ablaze with growth, but slow-and-steady expansion has fueled durable investment returns for decades. PepsiCo sells its namesake soda but, in reality, is a conglomerate of food and beverage brands, including Mountain Dew, Gatorade, Quaker, Frito Lay, Doritos, Cheetos, and many more. You'll find PepsiCo's products throughout grocery stores worldwide, which makes it hard for the company to have a down year.

Given that context, it's no shocker that PepsiCo is a magnificent dividend stock. PepsiCo is a Dividend King, with over five decades of consecutive dividend growth. The stock offers an excellent combination of income and upside due to its current 3% yield and five-year annualized dividend growth rate between 6% and 7%. PepsiCo pays about 66% of its earnings out as dividends, leaving enough cushion for PepsiCo to invest in growth or endure an unexpected slump.

While PepsiCo is recession-resistant, management has noted that consumers have resisted price increases. As a result, the stock has dipped to a price-to-earnings (P/E) ratio under 22 versus its five-year average of 26. The stock seems fairly valued today (not too expensive, but not cheap). Investors looking for a long-term stalwart that can deliver slow and steady growth should consider PepsiCo a stock they can trust.

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>>> Johnson & Johnson - Another quality business with a long track record of regularly hiking its dividends is healthcare staple Johnson & Johnson (NYSE: JNJ).

https://finance.yahoo.com/news/2-magnificent-p-500-dividend-082500784.html

J&J's stock price is down 19% from its early 2022 high. Part of that dip can be attributed to concerns regarding legal liabilities related to lawsuits involving its talc products. J&J is making efforts to resolve this (hopefully) short-term headwind. The dip can also partly be attributed to concerns about J&J's growth outlook for the next few years, when it will lose patent exclusivity on some of its pharmaceutical products, opening the door for other companies to make generic versions, which will put a drag on sales. But Wall Street is undervaluing the company's track record for developing new pharmaceuticals that can pick up the slack and drive further growth.

Johnson & Johnson has a long history of innovation. It has steadily increased its research and development budget for years, spending over $15 billion on it last year alone. The company is constantly investing in its pipeline of new treatments and technologies that will keep the company growing, as it has for over a century. In fact, products that were introduced within the last five years made up a quarter of J&J's total revenue last year.

It's a quality business in large part due to management's history of achieving high returns on capital. In addition to its product pipeline, management is always looking for opportunities to make strategic acquisitions that expand its capabilities in high-growth areas of healthcare, including its medical technology segment. It just completed its acquisition of Shockwave Medical, extending its presence in the high-growth market for cardiovascular intervention devices.

Johnson & Johnson's profitable business has funded a growing dividend for over 60 years. It recently raised the quarterly payment by $0.05 per share, bringing its forward dividend yield at the current share price to 3.32%.

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Procter + Gamble - >>> Coca-Cola Is a Rock-Solid Dow Dividend Stock, but So Is This Dividend King That Paid $9 Billion in Dividends Over the Last Year


by Daniel Foelber

Motley Fool

Jul 5, 2024


https://finance.yahoo.com/news/coca-cola-rock-solid-dow-075100352.html


Coca-Cola (NYSE: KO) checks all the boxes of a rock-solid dividend stock. It is an industry-leading, well-known business with diversification across beverage categories and geographic markets. It is a member of the Dow Jones Industrial Average, whose 30 components act as representatives of the broader market. It is also a Dividend King with 62 consecutive years of divined increases. And it has a compelling yield at 3.1%.

Procter & Gamble (NYSE: PG), commonly known as P&G, operates in completely different industries than Coke -- including fabric, home care, baby, feminine, healthcare, and beauty. But as an investment, P&G is very similar to Coke in that it distributes a boatload of money to investors through dividend payments.

Here's why P&G is a safe dividend stock that's worth a closer look.

P&G's multifaceted capital return program

P&G and Coke are two massive companies with sizable dividends. Their payouts are so large that P&G has paid over $9 billion to shareholders in the last 12 months while Coke has paid just shy of $8 billion -- earning both companies a spot on the list of the 10 largest companies by dividend expense.

The key difference between P&G and other companies that focus solely on a dividend is that it also buys back a ton of its own stock. P&G has reduced its share count by 12.9% over the last decade compared to just 1.8% for Coke. Reducing the share count increases earnings per share -- making the company a better value. P&G's consistent dividend, paired with its buyback program, more than makes up for its slightly lower yield of 2.5%.

Overcoming glaring challenges

The biggest issue with P&G in recent years is sales volume. The company has done a masterful job of improving operations and leveraging price increases. But brand consolidations and lower volume have resulted in very little sales growth -- just 12% over the last decade.

Still, P&G is undeniably a far better business today. As you can see in the chart, P&G's operating income has grown at a far higher rate than sales, indicating that it is expanding margins. When operating income grows faster than sales, it means a company is becoming more efficient and squeezing more profit out of each dollar it brings in from revenue. P&G's higher margins are a testament to its focus on quality over quantity. It has doubled down on its best brands rather than overexpand and become wasteful.

I'll admit, I had doubts about P&G, especially as inflation was ramping up a couple of years ago. But the company's results speak for themselves -- indicating P&G has impeccable pricing power. P&G's biggest advantage is attracting and retaining customers at different price points. For example, it owns Tide, Downy, Gain, and Bounce -- which have varying product offerings and price points. If customers pull back on spending, they may switch from Tide to Gain, but that doesn't mean P&G will lose the customer altogether.

By comparison, if a consumer chooses to shop at Walmart instead of Target, Target loses out completely. P&G's brands work together and protect the company from industry challenges even during economic downturns. This diversification and consistency makes P&G such a reliable dividend stock, no matter what the economy is doing.

The P&G premium

Aside from its stagnating sales growth, the biggest red flag for buying P&G stock now is its valuation.

P&G's price-to-earnings ratio is 26.6 -- which is high for a stodgy consumer staples company. But as mentioned, P&G is no ordinary dividend stock. It is a Dow component with 68 consecutive years of dividend increases.

The problem is that investors must pay a premium price for P&G's quality. But at least its historical valuation indicates this has been the case for a while now, as P&G's 10-year median P/E is 25.3. There are plenty of less expensive options than P&G, including Coke. Still, the fact that P&G has long sported a premium valuation should help investors understand that the stock isn't necessarily overpriced.

The perfect safe dividend stock

P&G's sales volume stagnated in its recent quarter (third-quarter fiscal year 2024). The company's guidance suggests 2% to 4% revenue growth for the full fiscal year, over $9 billion in dividends, and $5 billion to $6 billion in buybacks.

Investors should expect P&G to return to mid-single-digit sales growth in fiscal 2025 while retaining its high margins. Still, the company continues to deliver for shareholders in its capital return program.

P&G is the perfect dividend stock for risk-averse investors who aren't trying to outperform the S&P 500, but want to preserve capital and collect a steady stream of passive income from a company that can put up solid results even during a recession.

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>>> Down 55%, Is Pfizer a Good Dividend Stock to Buy on the Dip?


Motley Fool

By Cory Renauer

Jul 8, 2024


https://www.fool.com/investing/2024/07/08/down-55-is-pfizer-a-good-dividend-stock-to-buy-on/


KEY POINTS

Despite a tanking stock price, Pfizer has raised its dividend for 15 consecutive years.

Pfizer's profits are off their peak but more than sufficient to continue raising the dividend.

The stock offers a yield more than 4 times the average yield from dividend payers in the S&P 500 index

Shares of the world's largest drugmaker offer a dividend yield above 6% at recent prices.


The past few years have been tough ones for investors holding shares of Pfizer (PFE 0.91%). The Big Pharma stock is down by more than half from the peak it set in late 2021.

Pfizer's stock price was hammered, but that didn't prevent the company from meeting and raising its dividend commitment. Last December, the pharmaceutical company raised its payout for the 15th consecutive year.

Shares of Pfizer offer an eye-popping 6.1% dividend yield at recent prices. Is the stock a buy for income-seeking investors? To find out, we'll need to weigh its strengths against reasons to avoid the stock.

Reasons to buy Pfizer now

Sales of Pfizer's COVID-19 vaccine, Comirnaty, and its antiviral-treatment Paxlovid soared to a combined $56 billion in 2022. The stock is down because sales of these drugs collapsed faster than expected. The stock could be a smart buy now because the company wisely reinvested a large swath of the proceeds.

Last year, Pfizer acquired Seagen, a cancer drug developer with four commercial-stage therapies, for about $43 billion. Also in 2023, the Food and Drug Administration approved a record nine new medicines from Pfizer's late-stage development pipeline.

One of the newly approved treatments Pfizer's launching now, Velsipity, came from the $6.7 billion acquisition of Arena Pharmaceuticals in 2022. It could generate more than $2 billion in sales by 2030 as a treatment for ulcerative colitis.

Also in 2022, Pfizer acquired Biohaven and its migraine headache drugs for $11.6 billion. The big purchase gave the company Nurtec, which is already on its way to becoming a blockbuster that could produce more than $1 billion in annual revenue.

Last year, the FDA approved Zavzpret, a drug similar to Nurtec that works as a fast-acting nasal spray and could be more popular than the original.

If we ignore Paxlovid, Comirnaty, and the negative effects of a stronger dollar, Pfizer reported total first-quarter sales that rose 11% year over year. With a lot of new drugs to sell, Pfizer expects adjusted earnings to reach a range between $2.15 and $2.35 per share this year, which is more than it needs to meet a dividend commitment currently set at $1.68 per share annually.

Reasons to remain cautious

Pfizer's biggest growth driver in the first quarter was a rare-disease treatment called Vyndaqel. This is a once-daily capsule that keeps transthyretin, a protein that transports vitamin A and thyroid hormone, from unraveling and forming life-threatening plaques in heart tissue and other organs.

There are somewhere between 5,000 and 7,000 new cases identified annually in the U.S. of cardiomyopathy caused by transthyretin amyloidosis. That was enough to drive first-quarter sales of Vyndaquel 66% higher year over year to an annualized $4.5 billion. Recent results from a still-experimental therapy, though, suggest Vyndaqel's sales growth could decelerate.

This June, Alnylam (ALNY -0.20%) reported successful phase 3 clinical trial results with vutrisiran, an injection given once every three months. Treatment with vutrisiran reduced patients' risk of heart attack or death from any cause by 28% for patients who were taking Pfizer's Vyndaqel. (?)

Pfizer's top-selling cancer drug, Ibrance, is responsible for about 7% of total sales, and it's losing ground to competitors. First-quarter Ibrance sales declined by 8% year over year.

A buy now?

Big pharma companies are made up of many pieces that are constantly moving in opposite directions. Comirnaty, Paxlovid, and Ibrance are on the way down, but it looks like Pfizer has enough new products to offset the losses and continue growing earnings and its dividend payout.

Adding some shares of Pfizer to a diversified portfolio and holding them for at least a decade looks like a smart move for most investors to make right now.

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Chevron - >>> A relatively safe way to invest in the energy sector


https://finance.yahoo.com/news/high-hopes-3-dirt-cheap-121500958.html


Chevron is another stock that has gone practically nowhere over the last year or so. There are a few factors at play. The first is uncertainty regarding Chevron's acquisition of Hess, whose crown jewel is its stake in the Stabroek drilling block off the shores of Guyana. The other partners in the Guyana joint venture -- ExxonMobil and CNOOC, a Chinese national oil company -- are looking to stymie the deal and keep Chevron out of Guyana.

The good news is that Chevron doesn't need the deal to go through to be a great investment. It can continue ramping up spending in its existing plays, namely the Permian Basin. It can also continue buying back its stock, which remains a good value with a 14.4 P/E ratio.

It's also important to know how the market can reward or overlook certain qualities at different times. Right now, sentiment is optimistic, and peers like ExxonMobil are rewarded for higher spending and bold acquisitions.

Many other companies have followed suit. Even ConocoPhillips, which is known for being a conservative capital allocator, announced it is acquiring Marathon Oil in a blockbuster $22.5 billion deal. With Chevron's major deal in limbo, there's just one more box left unchecked.

Chevron's financial health and prudence could also be getting overlooked right now. When oil prices are falling, investors often gravitate toward safe, stodgy, dividend-paying names like Chevron. And for good reason. Its financial health helped it acquire multiple companies at compelling valuations during the COVID-induced downturn when other producers were struggling to stay afloat.

For the last three years or so, oil prices have been remarkably stable and strong, which might convince some investors to gravitate toward riskier, more-leveraged plays. It could work out, but long-term investors know the best way to compound gains is to buy quality companies and hold them as long as the investment thesis remains intact.

In sum, Chevron has the qualities of an excellent long-term holding. Its greatest strength is its financial health, which is particularly important given the volatile nature of commodities like oil and gas. With its 4.2% dividend yield, the company stands out as a compelling choice for generating passive income regardless of oil prices.

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>>> Top dividend stock No. 2: Eli Lilly


https://finance.yahoo.com/news/want-decades-passive-income-2-113700915.html


For more than 140 years, Eli Lilly (NYSE: LLY) has used cutting-edge science to help people live better. The healthcare leader's history is chock-full of medical breakthroughs, but its latest discovery could be the most impactful and profitable one yet.

Almost 70% of American adults are obese or overweight, which can lead to life-threatening illnesses like diabetes, heart disease, and strokes. Fortunately, Eli Lilly has developed a game-changing drug that makes it easier for people to lose weight.

Zepbound, the pharmaceutical pioneer's weight-management treatment for adults, activates hormone receptors that reduce appetite. Participants in a 72-week clinical trial who received the highest dose of the drug lost 48 pounds on average.

When combined with diet and exercise, Zepbound also helped these people improve their cholesterol and blood pressure profiles. And tirzepatide, the active ingredient in Zepbound, can make it easier for adults with type 2 diabetes to control their blood sugar levels. Better still, recent studies suggest that tirzepatide could have positive effects for people with liver disease and sleep apnea.

Due to tirzepatide's many potential health benefits, CEO Dave Ricks believes it will be the most important medicine of his 28-year career. Wall Street seems to agree. Investment bank Goldman Sachs expects Eli Lilly to be a leader in an anti-obesity drug market that will soar to $130 billion by the end of the decade. The company's profits, in turn, are projected to increase by more than 60% annually over the next five years.

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>>> Top dividend stock No. 1: Lockheed Martin


https://finance.yahoo.com/news/want-decades-passive-income-2-113700915.html


Lockheed Martin (NYSE: LMT) helps the U.S. government and its allies protect their citizens from a growing number of threats. The company is a vital ally in an increasingly volatile world.

As a leading defense contractor, Lockheed supplies crucial technology to the U.S. military. Here are just a few examples:

The F-35 stealth aircraft serves a crucial role in the security strategies of the Air Force, Navy, and Marines, as well as that of 18 allied nations.

The Aegis radar system is helping U.S. forces protect merchant shipping vessels from drone and missile attacks in the Red Sea.

Patriot-launched PAC-3 interceptors are enabling Ukraine to fend off Russia's aerial bombardments.

Lockheed has amassed $159 billion worth of orders for its broad array of defensive platforms. Combined with the long service lives of its key products — the F-35, for one, is expected to remain in service until at least 2080 (?) — this massive backlog gives investors a high degree of visibility into the company's future cash flow.

Management is committed to passing much of this cash on to shareholders via stock buybacks and a steadily rising dividend. Over the past decade, Lockheed has bought back a quarter of its shares, which has boosted per-share profits for its remaining stockholders. The defense leader has also raised its cash payout for 21 straight years. Today, Lockheed's dividend yield is a solid 2.7%.

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Derf, >> PSX <<

Those refiners have been on a tear. I've have PSX, MPC, VLO on my radar, but all three have spiked and are near term overbought. Marathon (MPC) is up 10 fold since 2020 (!), with PSX and VLO up 4 fold and 6 fold respectively. Fwiw, I decided to not chase them at this point. As I understand it, the refining business has different dynamics than other oil/gas areas, and is less dependent upon the price of oil. Looks like PSX is also moving into renewable energy -


>>> Phillips 66 Announces Major Milestone in Production of Renewable Diesel


Business Wire

Apr 1, 2024


https://finance.yahoo.com/news/phillips-66-announces-major-milestone-203900162.html


HOUSTON, April 01, 2024--(BUSINESS WIRE)--Phillips 66 (NYSE: PSX) today announced a major milestone in its conversion of the San Francisco refinery into the Rodeo Renewable Energy Complex, expanding commercial scale production of renewable diesel.

The Rodeo Renewed project has progressed, with the facility now processing only renewable feedstocks and producing approximately 30,000 barrels per day of renewable diesel. The Rodeo Renewable Energy Complex is on track to increase production rates to more than 800 million gallons per year (50,000 BPD) of renewable fuels by the end of the second quarter, positioning Phillips 66 as a leader in renewable fuels.

"We are proud to announce this significant achievement at our Rodeo facility," said Rich Harbison, Phillips 66 executive vice president of Refining. "The project advances Phillips 66’s long-held strategy to expand our renewable fuels production, lower our carbon footprint, and provide reliable, affordable energy while creating long-term value for our shareholders."

Harbison added, "We’ve had strong execution to-date and are fully focused on finalizing the project in the second quarter."

The Rodeo Renewed project design also provides the capability of producing renewable jet, a key component of sustainable aviation fuel (SAF), expected to start production in the second quarter of 2024.

Phillips 66 made a final investment decision to move forward with the Rodeo Renewed project in 2022, transforming the San Francisco refinery into one of the world’s largest renewable fuels facilities. As a world-class supplier of renewable fuels, the converted facility leverages a premium geographic location, unique processing infrastructure and flexible logistics to significantly reduce lifecycle carbon emissions.

About Phillips 66

Phillips 66 (NYSE: PSX) is a leading diversified and integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, and Marketing and Specialties businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future.

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PSX just announced about a 9% dividend increase.

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Interesting

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Derf, I updated the I-Box section of this board to show the dividend stocks in descending order, with the highest divs at the top. I usually wouldn't go after much over 5%, but the pipeline stocks (ENB, TRP) and miners (RIO, URA) seem like decent long term buy / holds, and 6-7% or higher is very tempting. But as usual, I only have small positions..



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DUK is a maybe...the others not so much

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NEE - >>> 1 Incredibly Cheap Dividend Growth Stock to Buy Now


by Reuben Gregg Brewer

Motley Fool

Mar 30, 2024,


https://finance.yahoo.com/news/1-incredibly-cheap-dividend-growth-100000971.html


NextEra Energy (NYSE: NEE) isn't your typical utility stock because its business contains two very different divisions. One provides a strong foundation, and the other provides rapid growth.

The combination has made NextEra Energy a dividend growth standout in the typically slow-growth utility sector. Here's what you need to know about NextEra and why this dividend growth stock is so attractive right now.

NextEra Energy is historically cheap

NextEra Energy's dividend yield is around 3.3% today. That's a touch below the industry average of 3.5%, using the Vanguard Utilities ETF as a proxy.

But NextEra is usually afforded a premium to its peers (more on this below). That 3.3% dividend yield just happens to be near the company's highest levels over the past decade, suggesting that the stock is on sale.

Adding to the allure, NextEra Energy has increased its dividend annually for 29 consecutive years. So there's a very real commitment to returning value to shareholders via reliable dividend growth.

But that brings up the key metric in this story: NextEra Energy's dividend has grown at an annualized rate of 10% over the past decade. That is why the stock is afforded a premium price since half that rate would be considered very good in the utility sector.

Put simply, NextEra Energy is a dividend growth machine and looks cheap today. But why? Perhaps something has changed.

NextEra is still projecting big dividend growth ahead

The truth is that something material has changed in the utility sector. Interest rates have risen dramatically over the past couple of years, and that will make it more expensive for utilities to operate their businesses.

Don't get too caught up in that -- NextEra Energy is projecting 10% dividend growth through at least 2026. There are some important facts to know here.

First, NextEra Energy is two businesses in one. The core operation -- about 70% of the company -- is its regulated utility operation. This division largely consists of Florida Power & Light, one of the largest utilities in the United States, which has long benefited from net migration to the Sunshine State. More customers mean more revenue, and the customer trends are not likely to change anytime soon.

As for higher costs, regulators are likely to consider rising interest rates when they contemplate NextEra Energy's requests for rate increases and capital-spending approvals. Maybe there'll be a short-term effect, but in the long term, higher rates shouldn't materially alter the dynamics.

The remaining 30% of NextEra Energy's business is its fast-growing renewable-power operation. The contracts it signs here are market-based, so they, too, will adjust along with interest rates.

But the real story is growth, with NextEra Energy hoping to roughly double its energy capacity in this division by 2026. In other words, more growth is the expected outcome, and that should further support the strong dividend growth that management is projecting.

The big picture is that, despite rising interest rates, NextEra Energy doesn't see much changing in its long-term prospects. That's opening up an opportunity for dividend growth investors to buy this dividend growth gem while it appears to be on the sale rack.

A unique buying opportunity

NextEra Energy isn't going to be for every investor. If you're seeking high-yield stocks, for example, you should probably keep looking.

But if you're a dividend growth investor or even a growth and income investor, NextEra Energy looks like a very attractive option today. It's not your typical utility, for sure -- but that's exactly why you should find the company and its 10% dividend growth rate so alluring.

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>>> Innovative Industrial Properties (NYSE: IIPR) is something of a unicorn in the world of marijuana stocks because it doesn't actually grow and sell pot. Instead, the company operates as a real estate investment trust (REIT).


https://finance.yahoo.com/news/bull-market-2-spectacular-growth-125000070.html


Innovative Industrial Properties acquires cultivation facilities, distribution centers, and other related real estate from state-licensed cannabis operators. It then rents these facilities back to the operators via long-term arrangements.

This model provides recurring rental income for Innovative Industrial Properties and offers more efficiency for the operators by letting them focus on the business of growing and selling marijuana.

It's important to note that the REIT only rents to operators in the medical cannabis business, which is more regulated and enjoys much broader legalization nationwide than the recreational use market. At the time of this writing, about 90% of Innovative Industrial Properties' portfolio was rented out to multi-state operators (MSOs), and around 60% of its tenants are publicly traded companies.

In 2023, the company reported revenue of $310 million and net income of $164 million. Those two figures rose 12% and 5%, respectively, from 2022. Adjusted funds from operations -- an important measure of REIT performance -- for the year totaled $257 million, up 10% from the prior year.

As of the end of the year, the REIT had 108 properties in 19 states. Currently, 95.8% of its operating portfolio is rented via triple net leases, where the tenant pays most of the costs associated with maintaining the property in addition to rent.

Another stellar figure is the rental collection rate, which stood at 100% as of February. The company also has a superior yield and track record of raising its dividend over time. Its current yield of 7% is considerably higher than the average stock trading on the S&P 500 (1.3%), and its dividend has risen 300% over the trailing-five-year period.

The cannabis market can be a risky place to put cash, at least until there is some measure of uniform legislation on a federal level. That said, the medical cannabis niche represents a vast and growing addressable market.

Innovative Industrial Properties operates an unusual model within this industry that lends itself to steady, recurring returns for the business and its shareholders. Investors might want to consider getting a slice of the action.

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>>> 3 Types of REITs That Have Outperformed the S&P 500


by Matt DiLallo

Motley Fool

March 30, 2024


https://finance.yahoo.com/news/3-types-reits-outperformed-p-091300103.html


Congress created real estate investment trusts (REITs) in 1960 to level the playing field. REITs empower anyone to invest in wealth-creating, income-producing real estate.

They've certainly done that over the years. Over the long term, our research found that REITs have outperformed stocks. Since 1994, three REIT subgroups stood out for their ability to beat the S&P 500. Here's a closer look at these market-beating REIT types.

Storing up wealth

According to data from Nareit, self-storage REITs have delivered a 17.3% average annual total return since 1994. That has obliterated the S&P 500's 10.1% average annual total return during that period.

Self-storage REITs have routinely delivered strong returns compared to other REITs:

As that slide highlights, the group has delivered the No. 1 cumulative-sector return since 1999. The space has delivered strong returns over the past decade:

Extra Space Storage (NYSE: EXR) has led the way. As of the final day of 2023, it was the second-best performing REIT over the past decade, with a 443% total return.

A few factors have driven the sector's strong returns. Self-storage properties are very profitable, requiring an occupancy level of 40% to 45% to break even (compared to 60% for most multifamily properties). Meanwhile, demand is steadily rising and relatively economically resilient. On top of that, self-storage leases are short term, which enables operators to increase rents to market rates reasonably quickly. These catalysts have enabled the top-three remaining publicly traded self-storage REITs to grow their core funds from operations (FFO) per share by more than 200% apiece since 2011, with Extra Space growing by nearly 690%. That has enabled all three to deliver robust dividend growth. The rapidly rising dividend income and earnings have enabled these REITs to handily beat the S&P 500.

Dual catalysts

Industrial REITs have delivered the second-best performance in the sector since 1994, with an average annual total return of 14.4%. They have also delivered strong performance over the past decade, with Rexford Industrial and Prologis (NYSE: PLD) delivering two of the five highest returns among REITs at 440.8% and 379%, respectively, as of the end of last year.

Two factors have helped drive the performance of industrial REITs: The accelerating adoption of e-commerce and changing supply chain practices. They've enabled industrial REITs focused on logistics properties to deliver strong core FFO and dividend growth. Over the last five years, logistics REITs have grown their core FFO per share by 9% annually (with 12% from industry-leader Prologis) while delivering 10% compound annual dividend growth (and 12% from Prologis).

The sector expects to continue growing rapidly. Rents on existing warehouse properties are skyrocketing due to high demand and low vacancy levels. That's enabling REITs to develop additional properties. These catalysts drive Prologis' view that it can grow its core FFO per share by 9% to 11% annually through 2026. That should also enable the company to continue increasing its dividend at a strong rate. Those two drivers could enable the leading industrial REIT to maintain its market-beating performance.

Capitalizing on the housing shortage

Residential REITs have delivered the third-highest performance among REIT subgroups since 1994 at 12.7% annually. A few factors have helped drive the sector's strong performance. They include relatively economically resilient demand for rental homes (people need a place to live), enabling landlords to steadily increase rents. Housing market imbalances, especially since the Financial Crisis, have also helped drive demand for rental housing.

As an investment, manufactured home communities have stood out. Equity LifeStyle (NYSE: ELS) was the fourth-best performing REIT over the past decade, delivering a nearly 400% total return as of the end of last year. A big driver is the economic resiliency of manufactured-home communities. These landlords can continue raising rents during a recession because the costs of moving a manufactured home to another community are often too prohibitive.

That driver has enabled Equity LifeStyle to grow its same-store net-operating income at a 4.3% annual rate since 1998, faster than the REIT sector average and apartments (both at 3.3%). Add in an ever-expanding portfolio (which also includes RV parks and marinas), and the company has grown its normalized FFO per share at an 8.6% compound annual rate since 2006. That has allowed it to deliver 21% compound annual dividend growth during that period.

REITs can make great investments

REITs have outperformed the S&P 500 over the long term. A big driver has been the robust returns from self-storage, industrial, and residential REITs. The factors that have enabled those REIT subgroups to deliver strong returns remain in place. That's why investors should consider adding one or more of those REIT classes to their portfolio.

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NEE, DUK - >>> 3 Dividend-Paying Energy Stocks to Buy at a Discount


by Reuben Gregg Brewer

Motley Fool

March 29, 2024


https://finance.yahoo.com/news/3-dividend-paying-energy-stocks-082600370.html


The utility sector is generally one of the more boring segments of the broader energy industry, but that doesn't mean it is always uneventful. In fact, rising interest rates have resulted in Wall Street shunning utility stocks. While there are some good reasons for that, it has opened up an opportunity for long-term income investors to buy reliable dividend stocks like NextEra Energy (NYSE: NEE), Duke Energy (NYSE: DUK), and Black Hills Corporation (NYSE: BKH). Here's a look at each of these energy specialists.

A quick primer on an industry downturn

There's no way to hide the fact that utility stocks are in the dumps today. As the chart below clearly shows, the utility sector, using Vanguard Utilities ETF (NYSEMKT: VPU) as a proxy, has been heading lower while the S&P 500 index has been moving higher. What's been going on? The big issue is that interest rates have been on the rise. That poses two problems for utility stocks.

First, other income options, like certificates of deposit (CDs), are more competitive with some stocks, like utilities, that are known for producing income. If you can get a 5% or so yield from a super-safe CD, why take on the risk of owning a similarly yielding stock? The opportunity for dividend growth is one (very good) reason, but sometimes investors are too short-term focused. As a result, money has shifted out of the utility sector.

Second, and probably more important to consider, is that utilities tend to be capital-intensive companies. That means debt is often a key part of the capital structure. Rising interest rates simply make it more expensive to do business. This will probably hurt near-term financial results throughout the sector. It makes some sense that investors are worried about that. However, these are largely regulated businesses. That means that the government has to approve capital spending plans and rate structures, balancing the need for profit against cost and reliability for customers. Higher rates will, eventually, be taken into consideration in that equation. So, over the long term, slow-and-steady growth is still the likely outcome.

In the end, then, the current industry malaise is probably a long-term opportunity for dividend investors.

Three solid options for dividend investors

NextEra Energy is going to be most attractive to dividend growth investors. Although it owns one of the largest regulated utility operations in the United States (Florida Power & Light), about 30% of its business is dedicated to a rapidly expanding renewable power business. That combination has resulted in annual dividend growth of around 10% on average over the past decade. Management currently believes it can increase the dividend at around that same rate through at least 2026.

That's a pretty astounding pace of dividend growth in the utility sector, which explains why NextEra Energy has long been afforded a premium valuation. But thanks to the current industry downturn, the yield is near a 10-year high at about 3.3%. While that's below the 3.5% industry average, it is still a great opportunity for dividend growth investors; the dividend has been raised annually for 29 consecutive years.

Duke Energy is a bit more conventional. While it is also one of the largest utility companies in the United States, it doesn't have a fast-growing clean energy business like NextEra Energy does. In fact, Duke recently agreed to sell the non-regulated clean energy business it did own. Effectively, it is doubling down on regulated assets, which will increasingly require clean energy investments to be made. But making those investments within the regulated framework will provide more consistent returns. The company has increased its dividend annually for 19 consecutive years and the dividend yield is toward the high end its range over the past decade at 4.3%. Note that the yield is notably above the industry average.

The last utility up is tiny Black Hills Corporation, which has a yield of just about 5%. Like the other two utilities here, that's toward the high end of the range over the past decade. Before moving on to the big reason to like Black Hills, it is worth highlighting just how small it is. This utility's market cap is $3.5 billion, which compares to $72 billion for Duke and a whopping $126 billion for NextEra. That's why it is all the more impressive to see that, of the three, Black Hills is the only one that happens to be a Dividend King, with 55 years' worth of annual dividend increases behind it. It is something of a hidden gem in the utility sector. Like Duke, it is a simple regulated utility, but if you appreciate dividend consistency, it wins hands-down.

There are good options in this out-of-favor industry

Wall Street is particularly downbeat on the utility sector today and that is creating long-term opportunity for dividend investors. You just have to be willing to go against the grain and buy when others are selling. However, if you take the time, you'll find that there are a lot of options in the sector, including dividend-growth stocks like NextEra, boring and reliable giants like Duke, and even Dividend Kings like Black Hills. If you like dividends, don't let this utility sell-off pass you buy without at least doing a deep dive into the space.

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Altria Group - >>> Forget Buying a Rental Property: Investing $50,000 in These Ultra-High Dividend Yield Stocks Could Make You $4,500 in Passive Income


by Brett Schafer

Motley Fool

March 24, 2024


https://finance.yahoo.com/news/forget-buying-rental-property-investing-101500391.html


The internet is awash with claims that the secret to financial independence is buying real estate and renting it out as "passive" income. The problem with real estate investing is that it is not as passive as the internet claims. Maintaining a rental property requires work, as landlords must manage tenants, fix damage, and continuously search for occupants.

There are better ways to generate passive income with your savings. Enter dividend stocks. These are stocks that regularly give shareholders cash payments in the form of dividends. And the best part is, it is actually passive income, requiring zero work on your part. All you have to do is click the buy button, hold on to your shares, and, like magic, you have a new income stream.

Forget buying a rental property. With $50,000, you can buy these two stocks and get approximately $4,500 each year in passive income.

1. Altria Group: Price increases and selling minority stakes

Our first stock is Altria Group (NYSE: MO). This is a tobacco stock that sells Marlboro cigarettes (and others) in the United States, which is the largest driver of profits for shareholders. On top of cigarettes, the company owns cigar brands, nicotine pouches, and a vaping business, although they are much smaller than cigarettes today.

Cigarette volumes have been declining in the United States for the last few decades. This is good for society, but bad for a company like Altria. So what are they to do? Raise prices, of course. Altria has been able to raise the price of cigarette packs for many years to counteract volume declines. This has led to consistent growth in operating income and cash flow, which is what fuels its large dividend payout.

Altria Group owns a large stake in Anheuser Busch, the global beer company. It has started to sell off part of this stake in order to fuel share buybacks, which decrease Altria's outstanding shares. Why is this important for dividend investors? If Altria has fewer shares outstanding, it can raise its dividend payout per share while still paying the same nominal dividend each year. If the dividend per share gets raised, your passive income gets raised as well.

As of this writing, Altria stock has a dividend yield of 8.58%. That means if you use $25,000 -- half of the theoretical $50,000 pile -- to buy shares of the stock, the company will pay you $2,145 each year in dividend income. This is a dividend that has grown by 100% in the last 10 years. You can benefit without putting in any work yourself.


2. British American Tobacco: betting on a new generation

The second stock in this pairing is British American Tobacco (NYSE: BTI). Like Altria, it is one of the world's largest tobacco companies, and it has counteracted volume declines for years by consistently raising prices. It owns brands including Camel, Newport, and Lucky Strike and sells products in many countries around the world.

However, unlike Altria, British American Tobacco's non-cigarette business units are a sizable portion of its operations. These "new categories" (as the company calls them) generated $4.2 billion in revenue last year and are growing rather quickly. These are nicotine products, such as nicotine pouches or e-vapor. These brands have collectively turned a profit and should help the company further counteract volume declines with cigarettes.

British American Tobacco's dividend yield is 9.37%, slightly higher than Altria's. A $25,000 investment into shares of the stock will give you an annual dividend income of $2,342.50. With the continued growth of the new categories segment, I would expect the company's dividend per share to grow this decade as well.

Add it all together, and a $50,000 investment into these two nicotine conglomerates can generate approximately $4,500 in passive income in the form of dividends each year for investors. That's at current share prices, of course. These investments require almost zero work to maintain as a shareholder, which contrasts drastically with the work that needs to be done to maintain rental properties.

Real estate can be a great investment for some people. But for those looking to build truly passive income, you might want to look at buying dividend stocks with your hard-earned savings instead.

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>>> Realty Income's Third-Largest Customer Is Closing 1,000 Locations. Should Investors Be Worried?


by Adam Spatacco

Motley Fool

March 19, 2024


https://finance.yahoo.com/news/realty-incomes-third-largest-customer-104500172.html


One of the most lucrative sources of dividend income is real estate investment trusts (REIT). Realty Income (NYSE: O) is a retail REIT that leases space to brick-and-mortar stores.

The company has a generous history of raising its dividend -- certainly a nice characteristic for anyone looking for passive income. However, one of Realty Income's largest customers appears to be in some trouble.

Dollar Tree is Realty Income's third-largest tenant, and the cost-conscious retailer announced last week that it plans to close 1,000 locations. Not only could this spell trouble for Realty Income, but should investors be worried about the sustainability of its dividend?

Let's dig into the full details and assess what's going on.

What's happening at Dollar Tree?

Dollar Tree is a discount retailer known for selling basic items from home goods, school supplies, candy, and more. In addition to its namesake locations, the company also operates a fleet of stores under the Family Dollar moniker.

During its fourth-quarter earnings, management announced that 1,000 stores will be closing. On the surface, this looks like pretty bad news for Realty Income. But as the old adage goes, there are three sides to every story. Before hitting the panic button, let's dig into how this scenario really impacts Realty Income.

How does this impact Realty Income?

As of Dec. 31, Family Dollar and Dollar Tree represented 3.3% of Realty Income's total annualized-contractual rent.

Per Realty Income's investor presentation, the company leases 1,229 locations to Family Dollar and Dollar Tree. While this might seem like a lot, it actually represents less than 10% of the dollar store's total store count. That's right -- Dollar Tree and Family Dollar have more than 16,000 locations combined.

This dynamic should ease some investor panic as it's clear that Realty Income is just a small fraction of Dollar Tree's overall retail footprint.

Should investors be worried?

In addition to the details explored above, there is one more important nuance as it relates to the store closures. Dollar Tree will be conducting these closures over a multiyear period and will wait for the lease terms to expire for all the identified locations.

This means that even if some of Realty Income's locations are at risk of closure, Dollar Tree will at least continue to pay rent until the lease is up. Not only does this provide Realty Income with some level of predictable income, but it also provides the company time to seek new tenants.

Moreover, Realty Income's recent acquisition of Spirit Realty now looks even savvier in retrospect. The deal broadens Realty Income's reach by opening it up to additional end-markets. The new revenue streams from the acquired properties can help mitigate any losses Realty Income potentially experiences as a result of the Dollar Tree closures.

The last important detail to point out is that Realty Income announced yet another monthly-dividend increase. On the same day the Dollar Tree news broke, Realty Income declared its 645th consecutive monthly-dividend raise since the company's inception.

I would not worry if I was a Realty Income investor. Candidly, store closures are an inherent risk of any retail-related investment. With a long-term occupancy rate of 98.2%, Realty Income has proven that it can keep its properties filled.

I see the Dollar Tree news as more of an attention-grabbing headline than an inherent risk to Realty Income's future. With such a long history of dividend raises, I think now is as good a time as ever to scoop up shares in Realty Income for passive income investors.

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MSFT, CNI, CAT - >>> Billionaire Bill Gates Has Over Half of His $42 Billion Portfolio Invested in These 3 Dividend Stocks


by Keith Speights

Motley Fool

March 10, 2024


https://finance.yahoo.com/news/billionaire-bill-gates-over-half-185000568.html


Do billionaires like dividend stocks? Absolutely. Just take a look at the holdings of famous billionaire investors such as Warren Buffett and Ken Griffin. They're loaded with dividend stocks.

Bill Gates stands out as another great example. Although he doesn't manage a public company or hedge fund like Buffett and Griffin do, he's donated a boatload of money to the Bill & Melinda Gates Foundation Trust. And over half of this charitable foundation's $42 billion portfolio is invested in these three dividend stocks.


1. Microsoft

It should come as no surprise that Microsoft (NASDAQ: MSFT) remains Gates' favorite stock. After all, he co-founded the technology company along with Paul Allen and led it for years. Microsoft ranks as the top holding for the Gates Foundation Trust by far, making up 33.98% of its total portfolio at the end of 2023.

Many tech companies don't pay dividends, but Microsoft is an exception. The company initiated a dividend program in 2003. Over the last 10 years, Microsoft has increased its dividend payout by nearly 168%. Its dividend yield, though, is still only 0.74%.

One key reason why the yield is so low is that Microsoft's share price has soared. The stock has been a 10-bagger over the last 10 years and is up almost 60% over the last 12 months.


2. Canadian National Railway

The Gates Foundation isn't just betting on tech stocks such as Microsoft. Canadian National Railway (NYSE: CNI) ranks as its third-largest holding, making up nearly 16.3% of the total portfolio.

Canadian National Railway isn't limited to just Canada. It has 20,000 or so miles of rail that transport products in the middle part of the U.S. as well. The company also offers transportation and logistics services in addition to rail operations.

The transportation company has increased its dividend for 28 consecutive years, most recently boosting its dividend payout by 7% in the first quarter of 2024. Its dividend yield currently stands at 1.94%.


3. Caterpillar

Caterpillar (NYSE: CAT) is the fifth-largest position for the Gates Foundation. It makes up 5.14% of the total portfolio. That brings the combined weight of these three dividend stocks to 55.41%.

The Gates Foundation has owned Caterpillar since the fourth quarter of 2005. However, the last time it added shares of the equipment manufacturer was back in the fourth quarter of 2013. The most recent transaction involving Caterpillar came in 2022 Q1, with the sale of roughly 24% of the foundation's stake in the company.

Caterpillar has generated nice dividend income for the Gates Foundation through the years. The company has paid a dividend every quarter since 1933 and has increased its payout for 29 consecutive years. Its dividend now yields 1.55%.

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[gfp927z]

'Derf, Yes, they clearly aren't as good as some of the other stocks on the list, but are only 2 of 50 dividend stocks in total. So it's diversified and lots of small positions. Owning 200 stocks also makes it too cumbersome to sell, so it helps enforce a long term buy / hold mindset. Anyway, it's one strategy, but what works for one investor may not for another.

Having large concentrated positions would have its advantages, but I'm not that confident in my stock picking ability. Buffett says to stay in one's 'circle of competency', and for me that means mostly the S+P 500, with the individual stocks there to help keep it interesting :o)



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[fung_derf]

I don't like either of your last two.

[gfp927z]

>>> NextEra Energy -- Fossil fuels aren't going away anytime soon, but renewable energy has steadily contributed more to America's electric grid. NextEra Energy (NYSE: NEE) is one of the world's largest green energy producers and the largest electric utility business in the United States. Growth in renewable energy has fostered big investment returns. Since going public, NextEra has beaten the S&P 500.

https://finance.yahoo.com/news/4-supercharged-dividend-stocks-buy-131600987.html

The company is also an excellent dividend growth stock. The payout has increased for 30 years, and investors get a solid 3.7% starting yield.

The best part? Its dividend growth. Management has raised the dividend by an average of 11% annually over the past five years and is guiding for 10% increases through at least this year. That makes NextEra a dividend growth stock you want to snap up whenever the price dips.

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>>> Enbridge -- Oil and gas must move from where they are extracted to refineries and exports. This doesn't happen by itself. Midstream companies like Enbridge (NYSE: ENB) own vast networks of pipelines and storage to make this possible.

https://finance.yahoo.com/news/4-supercharged-dividend-stocks-buy-131600987.html

Enbridge is one of North America's largest energy companies. Its network of pipelines spans thousands of miles from Canada to the Gulf of Mexico. It also operates renewable energy projects and a natural gas utility business.

Enbridge acts like a toll booth, making money on fees when oil and gas flow through its lines. That makes the business less volatile, and the utility business also helps create dependable revenue streams.

Enbridge has raised its dividend for 28 consecutive years, a testament to its business model. Additionally, investors get a high starting yield of 7.4%. The payout ratio is manageable at 81%, so investors can feel reasonably confident in it despite its abnormally high yield.

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[fung_derf]

Hadn't really thought about SMG as a pot stock.
The problem I have with pot stocks (I'm noticing I have problems with industries), is that the heads of the companies were most likely criminals before it was made legal.

[fung_derf]

The problem I have with pharmas are, they seem to rarely make money. With that said, I do own several medical related companies
LLY
GSK
ZTS
PFE
MRK
HLN
MDT
OGN
ABT
GILD
then I got talked into SNGX by Jim Cramer.

[gfp927z]

Derf, >> ABBV vrs AMGN <<

One solution is to just own both :o) Most of these pharma stocks have nice dividends, and they've been doing great, so I have 9 of them -

ABBV
AMGN
COR
JNJ
LLY
MRK
NVO
NVS
ZTS



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[gfp927z]

Derf, >> SMG <<

I've been tempted by that stock for several years, but it became so linked to the cannabis sector that it follows those stocks closely. As a turnaround I figure it's still very risky, unless it can de-link itself from the cannabis connection, or if that sector somehow comes back to life. Last I checked they were waiting for Congress to change the banking laws so these companies can get regular financing. Both Parties are apparently for it, but it sounded like not much chance of passage until after the election.

Fwiw, I have a Cannabis Sector board, but it's been neglected -


https://investorshub.advfn.com/Cannabis-and-Hemp-Sector-Ideas-27865



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[fung_derf]

I was just reading a Motley Fool article comparing ABBV to AMGN right now. MF says that at the moment AMGN is the better buy.......well......ummmm...
thats a definite maybe.
ABBV has just gone through a big run up. AMGN has falled off to its support line. Both pay around 3.5% dividend. AMGN definitely has the lower PE at the moment.

[fung_derf]

I just bought some $SMG. Just broke through resistance. Currently $65.68.
Dropping back below $60 would be a bad thing.

[Premium Stocks]

at least 10 yrs continuous

[Premium Stocks]

what's is the highest continuous DIV above 8%??

[gfp927z]

>>> The Best Performing Self-Storage REITs Over The Past Year


Benzinga

by Ethan Roberts

Jan 25, 2024


https://finance.yahoo.com/news/best-performing-self-storage-reits-215814670.html


Of all the real estate investment trust (REIT) subsectors, self-storage is one of the most difficult to classify. According to the National Association of Real Estate Investment Trusts (Nareit), "Self-storage REITs own and manage storage facilities and collect rent from customers. Self-storage REITs rent space to both individuals and businesses."

Self-storage REITs often get classified as specialized REITs, but the specialized category also includes REITs that own timber, farmland, data centers and other types of properties, so it can be confusing. The basic self-storage REITs include:

CubeSmart (NYSE:CUBE), Public Storage (NYSE:PSA), Extra Space Storage Inc. (NYSE:EXR), National Storage Affiliates Trust (NYSE:NSA), U-Haul Holding Co. (NYSE:UHAL), Iron Mountain Inc. (NYSE:IRM) and AmeriCold RealtyTrust Inc. (NYSE:COLD).

But these REITs do not perform equally. Take a look at which storage companies have performed best over the past 52 weeks:


Iron Mountain Inc. is a Portsmouth, New Hampshire-based specialty REIT with a focus on information management and storage, data center infrastructure and asset lifecycle management. Iron Mountain was founded in 1951, became a REIT in 2014 and has more than 225,000 customers worldwide. In recent years, it has shifted most of its focus from paper to data storage.

In June 2023, Iron Mountain raised its quarterly dividend from $0.62 to $0.65. The forward annual dividend of $2.60 presently yields 3.84%.

In November, Iron Mountain acquired Regency Technologies, a provider of IT asset disposition (ITAD) services in the U.S. for $200 million.

Over the past 52 weeks, Iron Mountain has had a total return of 33.32%, far surpassing all the other storage REITs.


CubeSmart is a Malvern, Pennsylvania-based, internally managed self-storage REIT with 1,374 storage facilities across the U.S. It had its initial public offering (IPO) in 2004 under the name, U-Store-It. In 2011, it was rebranded as CubeSmart. Between 2012 and 2022, CubeSmart grew its funds from operations (FFO) per share by 242%. Its same-store occupancy rate was recently 92.1%.

On Dec. 7, CubeSmart announced an increase in its quarterly dividend from $0.49 to $0.51 per share. The dividend has increased by 55% over the past five years. The $2.04 annual dividend presently yields 4.46%.

On Jan. 2, Jefferies analyst Jonathan Petersen upgraded CubeSmart from Hold to Buy and raised the price target from $38 to $53.

Over the past 52 weeks, CubeSmart has had a total return of 10.11%, making it the second-best-performing self-storage REIT.


Public Storage is a Glendale, California-based, self-managed self-storage REIT that is one of the largest brands of self-storage services in the United States. Its portfolio includes 3,028 self-storage facilities with 217 million rentable square feet across 40 states. It has the largest market cap rate of all self-storage facilities with $51.63 billion.

In addition to providing storage units, it also sells packing and moving supplies and provides insurance services. Public Storage was founded in 1972 and became a publicly traded REIT in 1995 when it merged with Storage Equities. It was added to the S&P 500 in 2005. As of the end of the third quarter, its occupancy rate was 92.1%, but occupancy declined 1.2% from the third quarter of 2022.

Public Storage pays a $3 quarterly dividend. Its $12 annual dividend presently yields 4.09%.

Both Goldman Sachs and Truist Securities recently maintained Buy ratings on Public Storage. On Jan. 11, Goldman Sachs analyst Andrew Rosivach raised the price target from $307 to $340, and on Dec. 28, Truist Securities analyst Ki Bin Kim raised the price target from $285 to $315.

Over the past 52 weeks, Public Storage has had a total return of 5.09%, the third largest return among self-storage REITs.


Extra Space Storage Inc. is a Salt Lake City-based self-storage REIT with over 3,500 self-storage properties, comprising 2.5 million units totaling 280 million square feet across 43 states and Washington, D.C. It has a market cap of $32.72 billion.

In July 2023, Extra Space Storage and Life Storage Inc. completed a merger in an all-stock transaction that added 1,200 properties to Extra Space's total portfolio, making it the largest self-storage company in the United States.

On Jan. 11, Goldman Sachs analyst Caitlin Burrows maintained a Buy rating on Extra Space Storage and raised the price target from $149 to $168.

Extra Space Storage pays a quarterly dividend of $1.62. The annual dividend of $6.48 presently yields 4.36%.

Despite being the largest self-storage REIT, over the past 52 weeks Extra Space Storage only returned 2.57%, the fourth-best total among the self-storage REITs.

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[fung_derf]

You are on the wrong board there bubba.
Why do they let spammers like you in here?
And what the heck is a "trial member"?

[MrFinnie]

NEWS OUT - KINETIC KNIT Quality Otc is using #AI and the #Metaverse to propel businesses into remarkably higher production levels.

Full PR - LATESTNEWSKNIT

[fung_derf]

Thanks. And you can look through my stock ideas on my board

https://investorshub.advfn.com/Derfs-Grotto-1450

And post that begins with ...Ð...is a stock market viewpoint. The rest are mostly me rambling on thoughts (if you want to add to them). Used to be quite a busy board, but then politics became an issue....until I banned them from discussion, so everyone left.

[gfp927z]

Yes, I know what you mean about I-Hubbers, they seem to mainly be penny stock addicts. But there are also some sharp people on I-Hub.

Btw, here is the full list of favorite buy / hold stocks (link below). Some of these are obvious, but others less so. A key criteria is that the stock has to have a nice long term chart (trajectory and steadiness), which is the best overall screening tool I've come up with. The reddish highlighted stocks I own, and the blue highlighted ones I'm waiting for a pullback. I got a little carried away with these lists, but I guess OCD will do that to you, lol..


Listed alphabetically -

https://investorshub.advfn.com/Best-Long-Term-Stock-Ideas-25585


By market cap -

https://investorshub.advfn.com/Buy-Hold-Stocks-42434


By sector (with additional stock ideas included) -

https://investorshub.advfn.com/Elite-Stocks-38031



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[fung_derf]

I will peruse your list at my earliest convenience. Mostly I just wanted to make sure you weren't a bot.
It's been a long time since I've found someone looking for the same types of stocks as me around here.

[gfp927z]

>> Who the heck are you? <<


Retired, but following stocks and sectors is a hobby, and these boards are mainly to store articles and stock lists. Thanks for any ideas :o)

Here are the current dividend oriented stocks I own (below). With dividends, I mostly just choose good long tern buy / hold stocks, and figure a dividend over 2% is an added bonus -


AbbVie (ABBV) - Research unit from Abbott Labs (282 Bil) ------------------------------------- 3.8% (Healthcare)

Analog Devices (ADI) - Data converter products (88 Bil) ---------------------------------------- 2.0% (Technology)

Automatic Data Processing (ADP) - Business outsourcing solutions (100 Bil) ---------- 2.4% (IT Services)

Coca Cola (KO) - Beverages (244 Bil) (Berkshire) ------------------------------------------------ 3.1% (Consumer)

EastGroup Properties (EGP) - Industrial property REIT, in Sunbelt (8 Bil) ----------------- 2.8% (REIT)

Equinix (EQIX) - Data center REIT (66 Bil) ---------------------------------------------------------- 2.1% (REIT)

McDonalds (MCD) - Fast food restaurants (195 Bil) (Berkshire) ------------------------------ 2.3% (Consumer)

Mondelez Intl (MDLZ) - Food products (was part of Kraft) (Berkshire) (94 Bil) ----------- 2.3% (Consumer)

Pepsico (PEP) - Food and beverage (241 Bil) ------------------------------------------------------- 2.9% (Consumer)

Procter + Gamble (PG) - personal care products (357 Bil) (Berkshire) ---------------------- 2.5% (Consumer)

--------------------------------------------------

Amgen (AMGN) - Biopharma (141 Bil) ---------------------------------------------------------------- 3.0% (Healthcare)

Home Depot (HD) - Home improvement and construction products (304 Bil) --------------- 2.5% (Retail)

Illinois Tool Works (ITW) - Diverse industrial products + equipment (78 Bil) --------------- 2.2% (Industrial)

Merck (MRK) - Pharmaceuticals (287 Bil) ------------------------------------------------------------- 2.6% (Healthcare)



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[fung_derf]

Who the heck are you?

[fung_derf]

I'm always looking for real dividend companies. Not sure how I've missed this board.

[MrFinnie]

FAVO Capital Inc. has successfully acquired three notable firms, including Believe Call Center

located in the Dominican Republic. Lendtech CRM Solutions, together with an associated

Independent Sales Firm.

Believe Call Center: Enhancing Customer Engagement and Support Capabilities

The Dominican Republic-based Believe Call Center was acquired by Favo Capital in a calculated attempt to improve customer support and engagement. By entering the Caribbean market, Favo Capital is demonstrating its dedication to offering outstanding customer service to a wide range of clients and enhancing its back-office skills in order to facilitate future growth.

Read more: https://bit.ly/FAVO_NEWS

[gfp927z]

>>> PepsiCo Is Known for Sodas Such as Pepsi and Mountain Dew. But Almost 50% of Its Profits Comes From Something Else Entirely.


by Jon Quast

The Motley Fool

December 31, 2023


https://finance.yahoo.com/news/pepsico-known-sodas-pepsi-mountain-165723426.html


The granddaddy of the colas is The Coca-Cola Company, with the Coca-Cola brand launching in 1886. The Pepsi-Cola Company, now PepsiCo (NASDAQ: PEP), wasn't far behind with its own Pepsi-Cola drink in 1898. And the two have locked horns for cola supremacy ever since.

Neither Coke nor Pepsi was able to take down its cola competitor. So it wasn't long before these two companies upped the ante by developing comprehensive soda-brand portfolios. Nowadays, PepsiCo sells well-known sodas such as Mountain Dew, Pepsi Wild Cherry, Mug Root Beer, Crush, and Starry in addition to its eponymous Pepsi.

PepsiCo built its portfolio by making several key acquisitions. Its 1964 acquisition of Mountain Dew was especially crucial to its present-day success. In the U.S. carbonated soft-drink market, Mountain Dew had 6.6% market share in 2022, according to Statista. I'd say that buyout worked out quite well.

Pepsi's Mountain Dew acquisition was huge. But a merger the following year was even more significant for the company and its shareholders.

It has nothing to do with carbonated soft drinks. But almost half of Pepsi's profits today are derived from a source that would have shocked the beverage company's founders.

When a beverage company dreamed bigger

In 1965, Pepsi-Cola merged with Frito-Lay -- a snack company with a portfolio that today includes Lay's, Fritos, Doritos, Cheetos, Funyuns, Spitz, Cracker Jack, and more. This was a strong departure for a business formerly focused entirely on carbonated soft drinks. But it was a good move.

Through the first three quarters of 2023, PepsiCo's Frito-Lay North America business segment has generated revenue of $17.4 billion. That's nearly as big as its Beverages North America segment's revenue of $19.7 billion.

In North America, Pepsi's snack revenue nearly matches the revenue from beverages. But these snack foods actually have better profit margins. Frito-Lay's operating income of $4.9 billion is better than operating income of just $2.2 billion for beverages.

Not only is Frito-Lay's operating income higher than beverages, it's also accounted for 48% of PepsiCo's total operating income year to date. In short, if Pepsi hadn't pivoted to snacks nearly 60 years ago, it would be half the company that it is today.

Why it matters for investors

There are so many potential takeaways with an observation like this for PepsiCo. For starters, as one of the largest beverage companies in the world both then and now, Pepsi's growth would have been more limited if it had stayed completely within its core competency. Expanding outside of it into an adjacent market with robust cross-promotion opportunities made a lot of sense.

It's similar to what Hershey is doing now, extending beyond candy and into snack items such as pretzels and popcorn.

More broadly, companies that can expand beyond core competencies often make good investments; this trait is known as optionality. Many companies attempt to branch out and few do it well. But PepsiCo is one of the grand success stories.

PepsiCo's blend of beverage revenue and snack sales has an additional benefit for shareholders: It's a potentially more reliable business because it has greater diversity.

All other things being equal, I would choose PepsiCo stock over a pure-play beverage company because of this stabilizing quality. If headwinds blow in the carbonated soft-drink industry for whatever reason, PepsiCo has another part of the business that can help carry it through the challenges.

That's particularly good news for dividend investors. PepsiCo has raised its dividend for 51 consecutive years, making it a Dividend King. Many investors choose to invest in these companies for their predictable dividend payments. Having a diverse business makes it more likely that PepsiCo won't get knocked off the list by a sudden shock to its business.

And it's all possible because the management team for The Pepsi-Cola Company -- a beverage business -- had the foresight to branch into an entirely different arena when it merged with snacking company Frito-Lay.

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>>> Better Buy: Coca-Cola vs. PepsiCo


Motley Fool

By Stefon Walters

Sep 28, 2023


https://www.fool.com/investing/2023/09/28/better-buy-coca-cola-vs-pepsico/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Coca-Cola's higher margins are a testament to its efficiency and pricing power.

PepsiCo's broad portfolio helps hedge against declining demand in the beverage market.

Both have increased their dividend annually for decades -- making them Dividend Kings.


Investors can't go wrong with either choice, but one stands out as the better long-term option.

When it comes to non-alcoholic beverage companies, there's Coca-Cola (KO) and PepsiCo (PEP) -- and then there's everyone else. In the U.S., the two account for around 71% of the carbonated soft drink market. The dominance of that duopoly makes them attractive investment opportunities.

For investors looking to invest in one of these companies, there's no "wrong" option to go with here. However, each company has its own unique strengths and focus areas. Let's see which offers a more compelling case for investors looking to choose one to add to their portfolio.

Coca-Cola's financials seem to be stronger

Coca-Cola is the market leader in non-alcoholic beverages, but one thing that may surprise people is just how much more revenue PepsiCo brings in. In Q2 2023, Coca-Cola made around $12 billion in revenue, more than $10 billion less than PepsiCo made.

Despite the gap in revenue, both companies are similar in net incomes, which is a testament to Coca-Cola's profit margins.

Higher profit margins are important because they give companies more financial flexibility. Higher margins generally come with more cash flow, which companies use for things like research and development, acquisitions, and paying dividends.

Coca-Cola can operate at higher margins largely because of its focus on beverages, operational efficiency, and the pricing power it has thanks to its strong brands. PepsiCo's margins aren't shabby by any means, but its broader business means it has more complexities to deal with, which can lower efficiency.

There's a difference in portfolio diversification

PepsiCo's revenue gap over Coca-Cola can be attributed to its larger portfolio that includes beverages, snacks, and nutrition products. Coca-Cola's portfolio only consists of beverages. Both have iconic brands, including, but not limited to, the following:

Coca-Cola: Coca-Cola, Sprite, Powerade, Dasani, and Minute Maid.

PepsiCo: Pepsi, Gatorade, Lay's, Doritos, and Aquafina.

PepsiCo's vast portfolio can help provide a cushion during times when beverage sales may lag or consumer preferences shift. Coca-Cola dominates the beverage segment, but PepsiCo's diverse portfolio allows it to take advantage of consumer trends across multiple categories.

A good example would be PepsiCo's introduction of products tailored to health-conscious consumers, among them Naked Juice for vegetable and fruit-based smoothies, whole grain breakfast options, and sugar-free, zero-calorie alternatives to traditional sodas.

Both companies have admirable dividends

Regarding dividends, Coca-Cola leads PepsiCo slightly. At their current share prices, Coca-Cola has a 3.2% yield compared to PepsiCo's 2.8%.

Coca-Cola has increased its dividend annually for 61 straight years while PepsiCo has a 50-year streak, so both are Dividend Kings. However, PepsiCo has been increasing its dividend by larger percentages in recent years. PepsiCo has boosted its payouts by 36% in the past five years compared to Coca-Cola's 18%.

Dividend yields fluctuate with stock price, so you don't want yield to be a determining factor in your investment thesis, but it's important nonetheless. Maybe more important, though, is the sustainability of the dividend.

Neither Coca-Cola nor PepsiCo is in danger of needing to cut their dividends, but it's worth noting how much lower Coca-Cola's 56% dividend payout ratio is than PepsiCo's 81%. Coca-Cola's lower payout ratio gives it more flexibility to reinvest in the business or potentially accelerate its dividend increases.

Which should investors go with?

For long-term investors, the better choice now seems to be Coca-Cola. The stock is more expensive, with a price-to-sales ratio of 5.6 compared to PepsiCo's 2.7, but it has the foundation to be a stable and high-yielding stock for the long haul.

Between its top-tier brand equity, impressive margins, and lucrative dividend, Coca-Cola seems to be the more appealing choice for investors looking for reliability and a shareholder-friendly company. It also passes the Warren Buffett test as it is one of his top holdings.

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$VZ $AMC $MO $GELYF

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>>> Amcor plc (AMCR)


https://finance.yahoo.com/news/11-best-packaging-stocks-buy-202837768.html


Number of Hedge Fund Holders: 22

Amcor plc (NYSE:AMCR) is a multinational packaging company that provides a wide range of packaging solutions and services. The company manufactures flexibles, rigid plastics, specialty cartons, and other packaging products. The company remained committed to its shareholder return in its fiscal Q3 2023, as it returned $745 million to shareholders through dividends and share repurchases. Its revenue for the quarter came in at $3.6 billion, declining by 1.1% from the same period last year.

One of the best packaging stocks, Amcor plc (NYSE:AMCR) has been growing its dividends consistently for the past 39 years. It currently pays a quarterly dividend of $0.1225 per share for a dividend yield of 4.86%, as of July 4.

At the end of March 31, 22 hedge funds in Insider Monkey's database owned stakes in Amcor plc (NYSE:AMCR), worth collectively over $244.5 million. With roughly 15 million shares, Polaris Capital Management is the company's leading stakeholder in Q1.

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>>> Passive Income: 3 Dividend Kings Worth a Look


by Derek Lewis

July 7, 2023


https://finance.yahoo.com/news/passive-income-3-dividend-kings-213400562.html


Investors love dividends, as they provide a passive income stream and help cushion the impact of drawdowns in other positions.

And when seeking income, many investors turn to the Dividend Aristocrats, a group of S&P 500 companies that have upped their dividend payouts for a minimum of 25 consecutive years.

However, a step above is the elite Dividend Kings group, companies that have increased their dividend payouts for a minimum of 50 consecutive years.

Three members of the club – Johnson & Johnson JNJ, PepsiCo PEP, and Sysco SYY – all deserve consideration from those seeing reliable dividend payouts. Let’s take a closer look at each.

Johnson & Johnson

Headquartered in New Jersey, Johnson & Johnson is an American multinational corporation that develops medical devices, pharmaceuticals, and consumer packaged goods. Shares currently yield a solid 2.9% annually paired with a payout ratio sitting sustainably at 44% of earnings.

As we can see below, the company has shown a commitment to increasingly rewarding shareholders.

In addition, shares could entice value-focused investors, with the current 15.2X forward earnings multiple sitting beneath the 16.8X five-year median and the Zacks Medical sector average.

PepsiCo

PepsiCo is an American multinational beverage, food, and snack corporation headquartered in New York. Shares yield 2.7% annually, with the company’s payout growing by an impressive 5.5% over the last five years.

PEP is a consistent earnings outperformer, exceeding earnings and revenue estimates in five consecutive quarters. Just in its latest release, the consumer staples titan delivered a 10% EPS beat and reported revenue 4% above expectations.

As we can see below, the company’s revenue growth is somewhat-seasonal but overall reflects stability.

Sysco Corp.

Sysco markets and distributes a range of food and related products primarily to the food service or food-away-from-home industry. Shares currently yield 2.6% annually, with the payout growing by a solid 7.5% over the last five years.

It’s hard to ignore the company’s growth profile, further reflected by its Style Score of “B” for Growth. Estimates suggest nearly 25% earnings growth in its current fiscal year (FY23) on 12% higher revenues. And in FY24, current projections call for an additional 12% earnings growth paired with a 4% sales climb.

Bottom Line

Targeting dividend-paying stocks is an excellent strategy that investors can deploy.

Dividends soften the blow from drawdowns in other positions, provide more than one way to reap a return from an investment, and allow maximum returns through dividend reinvestment.

And all three stocks above – Johnson & Johnson JNJ, PepsiCo PEP, and Sysco SYY – are Dividend Kings, upping their dividend payouts for a minimum of 50 consecutive years.

For those seeking a reliable income stream, all three deserve serious consideration.

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NextEra Energy (NEE) - >>> With its commitment to sustainability, NextEra Energy (NYSE:NEE) has become one of the world’s most significant wind and solar energy providers. The company offers various services, including electricity generation, transmission, distribution, and storage.


https://finance.yahoo.com/news/3-dividend-paying-utility-stocks-172034663.html


NextEra Energy is also involved in research and development initiatives. Through its continued efforts to provide reliable and affordable renewable energy to customers around the globe, NextEra Energy has become an industry leader in delivering clean energy solutions.

NextEra’s huge portfolio and breadth of operations offer a certain level of stability. Plus, its experience in solar and wind projects gives it the edge over competitors looking to capitalize on the benefits of the Inflation Reduction Act.

Recently, NextEra Energy saw its stock nosedive following its earnings repot. The company’s EBITDA did not meet Wall Street projections in the company’s fourth quarter. Additionally, the head of its Florida Power & Light utility announcing his retirement. This was on top of a press release that had to be put out, to refute claims that the company had broken any campaign finance laws in Florida.

Sentiment perked up somewhat after NextEra declared a quarterly dividend of $0.4675/share, which is 10% higher than the previous payout of $0.4250. Shares are still down almost 10% this year, though.

Altogether, NextEra Energy is one of the largest utility companies in North America, offering offers investors an attractive yield of 2.5%. It also is well-positioned to take advantage of growth opportunities in the future. With its low-risk profile, NextEra Energy is an ideal option for investing in dividend-paying utility stocks.

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>>> Southwest Airlines reinstates dividend, sees strong travel demand


Reuters

December 7, 2022


https://news.yahoo.com/southwest-airlines-reinstates-quarterly-dividend-115829890.html



(Reuters) -Southwest Airlines Co on Wednesday became the first major U.S. airline to reinstate its quarterly dividend, more than two years after suspending it in the wake of the coronavirus pandemic.

U.S. airlines have benefited from pent-up demand for leisure trips and a gradual return of lucrative business travel, helping them post strong quarterly earnings despite worries of an economic slowdown.

"Our fourth-quarter 2022 outlook remains strong, and we have a solid plan for 2023," Chief Executive Officer Bob Jordan said in a statement.

In a regulatory filing ahead of its investor day on Wednesday, Southwest said it was expecting "strong leisure revenue trends" to continue into the first quarter of next year, while business travel was expected to improve.

The carrier also trimmed its fourth-quarter fuel cost forecast by about 5 cents per gallon, compared with its previous estimate.

Southwest declared a third-quarter dividend of 18 cents per share, the same level at which it was prior to the pandemic. The dividend will be paid on Jan. 31.

The airline did not detail any stock buyback plans, which have been fiercely opposed by unions, who have asked U.S. airlines to focus on investing in their workers and fixing operational issues.

As part of the federal COVID-19 relief package, airlines had been prohibited from buying back their shares. The ban, however, expired on Sept. 30.

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Winmark - >>> These 3 Dividend Payers Are Outpacing the S&P 500


Motley Fool

By Collin Brantmeyer

Nov 9, 2022


https://www.fool.com/investing/2022/11/09/these-x-dividend-payers-are-outpacing-the-sp-500-c/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Costco has a history of paying special cash dividends and beating the market.

PepsiCo recently became a Dividend King and has a current yield of 2.5%.

Winmark Corporation is set to pay its third special cash dividend in three years.


In a down year for the market, these three dividend stocks are topping the S&P 500.

It's no secret that investors are disappointed with their returns in 2022, with the S&P 500 down about 20% year to date. For investors looking to beat the market, there's evidence that consistent dividend-paying stocks are likelier to produce higher returns with lower volatility than non-dividend-paying stocks.

Therefore, it may be worth adding these three reliable dividend-paying stocks, which have outperformed the market in 2022, to your portfolio.

1. Costco

Most price-conscious consumers are familiar with Costco (COST -0.45%), the membership-only big-box retailer. Its stock is a favorite among long-term investors for its ability to beat the market and pay dividends consistently. Over the past five years, Costco stock is up 194%, compared to the S&P 500's 47%.

Despite a lackluster 2022 with a negative 14% return, Costco stock is still beating the S&P 500 by about 6%.

On the surface, Costco's quarterly dividend of $0.90, which represents a dividend yield of 0.76%, isn't overly impressive. However, the third-largest retailer in the world is known for paying a special cash dividend about every three years. Its last one came in 2020 at $10 per share.

Costco's balance sheet is also one of the strongest in the retail industry. As of Aug. 31, the company had more than $11 billion in cash and short-term investments, compared to just $6.48 billion in long-term debt. As a result, Costco has a rare negative net debt (cash and short-term investments minus long-term debt), which equates to roughly negative $4.5 billion. By comparison, Costco competitors Target and Walmart have a net debt of approximately $14 billion and $35 billion, respectively.

If Costco stock has a downside, it's unquestionably its valuation. Using the common valuation metric price-to-earnings (P/E) ratio, Costco's P/E ratio is roughly 37, whereas its competitors, Target and Walmart, are 18 and 28, respectively. Still, there's a reason Costco deserves a high valuation: Over the past three, five, and 10-year periods, Costco stock has handily beaten Target, Walmart, and the S&P 500.

Overall, Costco has proven to be one of the safest stocks an investor can own. With an unmatched balance sheet, it should continue paying dividends for years to come.


2. PepsiCo

While PepsiCo's (PEP 0.64%) 4% year-to-date returns wouldn't be impressive in a bull market, the stock is outperforming the overall market by about 25% in 2022. The multinational food, snack, and beverage giant became a Dividend King -- an S&P 500 company that has paid and raised its dividend annually for at least 50 consecutive years -- earlier this year. At that time, it raised its quarterly dividend from $1.075 to $1.15 per common share. The stock's current dividend yield is about 2.5%, considerably higher than the S&P 500's 1.6% dividend yield.

Pepsico is a mature business, and its management focuses on returning cash to its shareholders. In 2022, it will pay cash dividends of $6.2 billion and repurchase $1.5 billion worth of shares, for a combined $7.7 billion.

Beyond PepsiCo's dividend and share repurchases, the company posted revenue of $58.3 billion during the first three quarters of 2022, which represented 7.7% growth year over year. Better yet, the company posted net income of $8.4 billion during that same time period, representing a 33% year-over-year increase from $6.3 billion.

These results show that PepsiCo's snacks and sugary beverages will always be in demand whether the economy is booming or struggling. And as a market leader in the food and beverage industry, PepsiCo stock makes an excellent addition to any investor's portfolio.


3. Winmark Corporation

Winmark Corporation (WINA) is a small-cap stock with a market capitalization just shy of $1 billion. Consumers are likely aware of its franchise-based retail companies that specialize in buying and selling used goods: Music Go Round, Once Upon a Child, Plato's Closet, Play It Again Sports, and Style Encore.

Its stock is essentially flat in 2022, which is still a commendable 20% higher than the S&P 500. Winmark currently pays a quarterly dividend of $0.70 per share, which represents a dividend yield of 1.12%. The company has a history of paying and raising its quarterly dividend each year, dating back to 2010, with the exception of one quarter in 2020 when the COVID lockdowns occurred in the U.S and Canada.

Like Costco, Winmark also has a history of paying special cash dividends. In fact, Winmark is paying $3 per share on Dec. 1, 2022 to all shareholders at the close of business on Nov. 9, 2022. Prior to this-year's special dividend, Winmark last paid a special dividend of $3 per share and $7.50 per share in 2020 and 2021, respectively.

Winmark is incentivized to open more franchises because the company's revenue comes from franchise fees and royalty fees. To open one, a franchisee must pay an initial franchise fee of about $25,000 in the United States and pay 4% to 5% of weekly gross sales.

As a result of Winmark's capital-light business model, the company generated $21.1 million in revenue and $10.3 in net income during its latest quarter. Those figures led to an impressive net profit margin -- net income divided by sales -- of 48%. For comparison, Costco had a net profit margin of 2.5% for its most recent quarterly earnings.

One negative for the otherwise glowing company is Winmark's slow franchise growth. Currently, the company has 1,291 franchises and only opened a net of 22 stores over the past 12 months, representing 1.7% growth. If the company can add more franchises at a faster pace, the stock should continue beating the S&P 500 -- just as it has done for years.

Are these dividend stocks buys?

In uncertain market conditions, dividend stocks can provide some comfort when you see payments hit your portfolio each quarter. Beyond that, if executives know that shareholders expect them to raise the stock's dividend each year, the company may take on less risk.

These three stocks, in particular, have established histories of beating the S&P 500 and should continue doing so -- all while paying you quarterly to hold them in your portfolio.

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