Investors are constantly on the lookout for opportunities that offer a blend of stability, income, and growth potential. Among the myriad investment options available, the best dividend stocks stand out as a favoured choice for those seeking reliable returns and a steady income stream.
With dividends serving as a cornerstone of long-term wealth accumulation, prudent investors often gravitate towards companies with a proven track record of consistently rewarding their shareholders.
Below are the top 5 best dividend stocks poised to deliver value and financial growth to investors.
1. JPMorgan Chase & Co.
JPMorgan Chase & Co. tops the list of the best dividend stocks to invest in. This financial powerhouse offers a captivating combination of a consistently growing dividend, impressive profitability, and a strong presence in the investment banking world.
The company recently raised its quarterly dividend by 10%, which translates to a current dividend of $1.15 per share, and with a payout of $3.3 billion to shareholders in Q1 2024 alone, While the dividend yield of 2.38% might seem lower than some competitors, it’s important to consider the context.
JPMorgan Chase boasts a staggering net income of $48.5 billion in the latest twelve months (TTM). This financial strength allows JPM to comfortably maintain its dividend policy and potentially continue increasing payouts in the future, making it a compelling choice for investors seeking the best dividend stocks with growth potential.
2. Exxon Mobil Corporation
Exxon Mobil Corporation emerges as another top contender in the realm of dividend stocks, offering investors a compelling blend of stability, longevity, and consistent income generation.
As a stalwart in the energy sector, Exxon Mobil has established itself as a reliable provider of dividends, a tradition that dates back to 1882, with an impeccable record of never missing a dividend payment.
On April 26, Exxon Mobil declared a quarterly dividend of $0.95 per share, maintaining its steadfast commitment to rewarding shareholders.
Furthermore, Exxon Mobil boasts an impressive 41-year track record of consecutive dividend increases testifying to its resilience and ability to navigate through various economic cycles.
With a dividend yield of 3.22% as of April 27, Exxon Mobil offers investors an attractive return on investment, complemented by the potential for capital appreciation over time. This combination of dividend yield and growth prospects makes XOM an appealing choice for income-oriented investors seeking both stability and growth in their portfolios.
Institutional investors have shown confidence in Exxon Mobil, with the number of hedge funds owning stakes in the company increasing to 85 in the fourth quarter of 2023, compared to 79 in the previous quarter. The combined value of these holdings exceeds $4.47 billion showcasing the widespread institutional support for XOM as a reliable income-generating asset.
3. Bank of America Corporation
Bank of America boasts a commendable 25-year streak of consecutive dividend payments, solidifying its reputation as a dependable income provider.
While the current quarterly dividend of $0.24 per share translates to a yield of 2.54%, which may be slightly lower than some other options, the sheer size and stability of Bank of America make it a secure choice.
Beyond its own financial strength, Bank of America enjoys the confidence of some of the most respected investors globally.
The number of hedge funds holding BAC shares grew to 96 in Q4 2023, with a collective stake value exceeding a staggering $40 billion. Notably, Warren Buffett’s Berkshire Hathaway holds over 1 billion BAC shares.
4. Chevron Corporation
Chevron’s most compelling feature lies in its unwavering commitment to shareholder value. The company holds a distinguished title as a dividend aristocrat, for its remarkable 37 consecutive years of increasing its dividend payouts.
In the fiscal year 2023 alone, Chevron returned nearly $11 billion to shareholders through dividends, solidifying its position among the most profitable dividend stocks.
Beyond its impressive history, Chevron offers a current dividend yield of around 3.93% meaning a significant and dependable income stream for investors.
The company boasts a robust net income of $20.3 billion in the latest twelve months (TTM).
Beyond its own merits, Chevron enjoys the backing of prominent institutional investors. Over 70 hedge funds hold Chevron in their portfolios, with a total value exceeding $21.6 billion. This significant institutional investment signifies confidence in Chevron’s prospects, including its ability to maintain its position as one of the best dividend stocks.
5. Johnson & Johnson
Johnson & Johnson stands out as one of the best dividend stocks for investors seeking portfolio stability and growth. With a solid track record spanning over six decades, JNJ has consistently delivered value to its shareholders through regular dividend increases.
As of the latest announcement on April 16 2024, the company raised its quarterly dividend by 4% to $1.24 per share, a milestone that marked Johnson & Johnson’s 62nd consecutive year of dividend growth.
The company reported a staggering TTM (trailing twelve months) net income of $19.1 billion, making it one of the most profitable stocks in its sector.
Moreover, JNJ’s dividend yield, which stood at 3.39% as of April 27, offers investors an attractive income stream while also providing potential for capital appreciation over the long term.
