Investors love dividend stocks. Not only do they provide dependable income, but they also give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends and distributions realized over time. In other words, the total return on an investment or a portfolio includes both income and stock appreciation.
The first quarter was the first down quarter in the markets since 2020. Truth is, the “buy-the-dip” retail crowd cannot save the market every time there is a sell-off. While both the Nasdaq and the Russell 2000 traded into bear market territory and came back in a big way, we could be headed back down, and headed down hard. With inflation hammering away at working Americans, gas prices above $6 a gallon in California and interest rates rising, stocks that pay big dividends may be just the answer for the rest of 2022, and perhaps beyond, as the near-term looks very shaky.
The following five top stocks are rated Buy and come with 5% and higher dividends. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Altria
This maker of tobacco products offers value investors a great entry point now and was hit as cigarette sales have slowed. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA enjoys a 51% share of the U.S. cigarette market, led by its top cigarette brand Marlboro.
Altria also owns over 10% of Anheuser-Busch InBev, the world’s largest brewer. In March 2008, it spun off its international cigarette business to shareholders. In December 2018, the company acquired 35% of Juul Labs, and it has purchased a 45% stake in cannabis company Cronus for $1.8 billion.
Note that the company has increased its dividend for 52 consecutive years. Shareholders now receive a 6.83% dividend. Jefferies has a $58 target on Altria stock. The consensus price target of $48.87 is less than the most recent close at $52.64 a share.
Foot Locker
Shares of this athletic shoe retailer have rallied from lows and look ready to move higher. Foot Locker Inc. (NYSE: FL) engages in the retail of athletic footwear, apparel, accessories, equipment and team licensed merchandise under the Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports and other brand names.
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