HomeBusiness3 Dividend Stocks to Double Now

3 Dividend Stocks to Double Now

It’s always a good time to buy dividend stocks, but it’s even more important when the market is volatile. The market does not look volatile at the moment; the S&P500 is up 25% so far this year and has reached record highs.

However, there are indications that the market is becoming inflated. Valuations are high and if they remain that way this could lead to a correction. There is global macroeconomic volatility as high inflation persists in some regions, and President-elect Donald Trump’s financial agenda could lead to change in the US economy.

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What that means, of course, is that you want to have some solid, reliable dividend stocks in your portfolio. They provide security at all times in challenging times and passive income. Real estate income (NYSE:O), Home Depot (NYSE:HD)And Ally financially (NYSE: ALLY) are three great choices.

Realty Income is a real estate investment trust (REIT). REITs are great dividend stocks because they pay out 90% of their income as dividends. They are usually stable and reliable and deliver high yields, but not always. Realty Income is all that, plus it has a proven track record spanning decades, and it’s one of the few REITs that pays a monthly dividend.

REITs own properties that they rent to tenants, usually on a long-term basis. REITs typically concentrate in a specific sector, and Realty Income is a retail REIT. Recently, however, the company has expanded into areas to grow its property numbers and diversify its assets.

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Retail is still by far the top segment, with supermarkets and convenience stores accounting for almost 20% of all rented properties. But it now also counts gaming and industrial customers as tenants. The two top tenants are Dollar general And Walgreens Boots Allianceand the rest of the top customers are mainly essential retailers who can pay the rent even in tough times. In other words, Realty Income’s stable income translates into reliable dividends for shareholders.

Realty Income’s dividend yields 5.4% at today’s price and is reliable for ongoing payments under a variety of conditions.

Home Depot has a long history of competitive performance and its dividend has played a major role in creating shareholder value. Although the company is currently feeling pressure, this is due to external factors: a poor housing market is putting a halt to home sales, which trickles down to lower home improvement sales. But once that turns around, Home Depot will be well positioned to recover.

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