Investors love dividend stocks. They not only 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 dividend income and stock appreciation.
We screened our 24/7 Wall St. research database looking for companies in the S&P 500 that were rated Buy at major Wall Street firms and also paid the highest dividends in the venerable index. In addition, we focused on five companies that are very timely stocks to own for the balance of the third quarter and the rest of 2023. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
The stocks are listed by dividend size.
Altria
This maker of tobacco products offers value investors a great entry point now as it has been 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, which some feel is worth more than $10 billion and may be a segment of the company that could be sold. Given the issues the brewer has had this year, it may indeed be a candidate to be sold.
The company has increased its dividend for 52 consecutive years and just announced another increase effective October 10, when the dividend increased by four cents per share to $0.98.
Shareholders now receive an 8.98% dividend. Jefferies has a $55 target price for Altria stock. The consensus target is $49.34, and shares closed on Monday at $43.97.
AT&T
This legacy telecommunications company has been going through a long restructuring, has lowered its dividend and has sold off or merged underperforming assets. AT&T Inc. (NYSE: T) provides telecommunications, media and technology services worldwide.
Its Communications segment offers wireless voice and data communications services and sells handsets, wireless data cards, wireless computing devices with carrying cases and hands-free devices through its own company-owned stores, agents and third-party retail stores.
AT&T also provides data, voice, security, cloud solutions, outsourcing and managed and professional services, as well as customer premises equipment for multinational corporations, small and midsized businesses, and governmental and wholesale customers. In addition, it offers broadband fiber and legacy telephony voice communication services to residential customers.
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