For those who take a have a look at a corporation’s stock, the aspect that typically jumps out is the expansion or decline of its price. It’s essentially essentially the most straightforward indicator, but stock price alone doesn’t give the whole picture of a stock’s value.
A stock’s total return is generally a more appropriate measure because it considers each capital appreciation (or depreciation) and dividends received, offering an entire view of an investment’s performance. Irrespective of a corporation’s stock price growth or decline, dividends reward investors for his or her patience and loyalty.
For those who occur to’re in the hunt for plenty of dividend stocks in order so as to add to your portfolio, you might’t go improper with the following three options.
1. Lowe’s
Lowe’s Firms (NYSE: LOW) is definitely considered one of the world’s largest home improvement retailers, trailing behind its essential competitor, Home Depot. With a market capitalization of over $130 billion, it is usually definitely considered one of the world’s top 100 most dear corporations.
Lowe’s stock has had an outstanding yr despite its lackluster financial performance in its fiscal 2023 (ended Feb. 2, 2024). Sales were down 4.7% yr over yr, but much of which may be attributed to a slowdown in do-it-yourself demand.
Lowe’s appears to be playing the long game, though, having spent $6.3 billion throughout the last yr on stock buybacks (29.9 million shares). So, while the company’s net sales can have been down, its earnings per share increased to $1.77 from $1.58.
Lowe’s quarterly dividend is $1.10 per share, with a trailing-12-month yield of barely below 2%. The dividend yield itself just isn’t eye-popping, nevertheless it’s still above the S&P 500 average. More importantly (especially for long-term investors), Lowe’s has increased its dividend for 51 consecutive years, making it a Dividend King. Before now five years, Lowe’s dividend has greater than doubled.
Despite the recent slowdown, Lowe’s is a staple in its industry and has the entire tools (no pun intended) for longevity. It’s a stock that investors can feel comfortable holding on to for an outstanding while.
2. Coca-Cola
Coca-Cola (NYSE: KO) is a company that needs no introduction. With distribution in over 200 countries globally, Coca-Cola’s brand is considered one of the crucial recognizable worldwide. Getting the distribution Coca-Cola has (and its profitably) just isn’t a small feat that should be taken for granted, either.
The knock on Coca-Cola recently has been a slowdown in its sales growth. Organic sales in 2022 and 2023 grew 16% and 12%, respectively, but quite loads of which may be attributed to Coca-Cola increasing prices. Sales volume only increased by 5% and a few% in those years, but that could be a testament to Coca-Cola’s pricing power.
Coca-Cola is one other Dividend King, having increased its annual dividend for 62 straight years. Its current quarterly dividend is $0.485, and the stock today offers a yield of around 3.3%.
There’s a reason Coca-Cola is a blue chip stock and has been for a while now. It has an in depth distribution network, pricing power that helps during slow sales periods, and is shareholder-friendly with its dividend. More impressively, though, is that it hasn’t gotten complacent despite being the industry leader.
From ready-to-go alcohol and other emerging categories like plant-based drinks, Coca-Cola has repeatedly shown that it will possibly make the crucial investments to keep up its portfolio growing and cater to changing consumer preferences. That all but ensures it’ll be the leader for quite some time.
3. Walmart
Walmart (NYSE: WMT) is America’s leading private employer and has been for a really very long time. That could be a byproduct of the company’s huge reach, with over 5,000 U.S. stores (including Sam’s Clubs) and 1.6 million associates.
Reach aside, Walmart is in a league of its own by way of revenue generation. In its fiscal 2024, Walmart made $648.1 billion in revenue, up 6% yr over yr. For comparison, second-place Amazon made barely below $575 billion in its latest fiscal yr. With regards to generating money, you might (almost) on a regular basis count on Walmart.
Although its brick-and-mortar stores are the driving force behind its impressive financials, Walmart’s emergence in e-commerce and promoting will likely be vital for its continued growth. Global e-commerce sales grew 23% in its latest quarter, and its global promoting business grew around 33% throughout the fiscal yr.
Walmart is yet yet another Dividend King (see the trend here?). In February, it announced a dividend increase, marking the 51st consecutive yr. The 9% increase was also its largest in over a decade, pointing to the company’s good financial health.
Some may consider Walmart’s stock expensive immediately, but that shouldn’t deter long-term investors who’re around for the long haul.
Must you invest $1,000 in Lowe’s Firms immediately?
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Idiot’s board of directors. Stefon Walters has positions in Apple and Lowe’s Firms. The Motley Idiot has positions in and recommends Amazon, Apple, Berkshire Hathaway, Home Depot, and Walmart. The Motley Idiot recommends Lowe’s Firms. The Motley Idiot has a disclosure policy.
3 Dividend Stocks to Double Up on Right Now was originally published by The Motley Idiot