7 Dependable Dividend Stocks for a Restful Retirement

dividend stocks - 7 Dependable Dividend Stocks for a Restful Retirement

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Up until now, stocks have relentlessly been “climbing a wall of worry.” But down days continue to follow down, with little upside relief. That’s when it’s good to have some quality dividend stocks in your portfolio.

Companies that offer decent dividends are investor friendly. They see offering a dividend as a way to reward shareholders on a regular basis rather than plow it all back into new acquisitions or other aspects of relentless growth.

That also means they’re pretty stable business models. They’re judged on their reliability — for growth and income — rather than their insatiable thirst for growth.

But remember, dividend stocks are long-term investments. The power of compounding, as Warren Buffett likes to say, is a powerful tool for long-term investors. So, choose some quality companies with reliable dividends and help steady your nerves in this kind of market.

And remember, the bigger the dividend, the more inherent volatility there may be. Currently, the average S&P 500 dividend yield is 2%. All these stocks are well above that.

  • Extra Space Storage (NYSE:EXR)
  • First BanCorp (NYSE:FBP)
  • National Storage Affiliates (NYSE:NSA)
  • Oaktree Specialty Lending (NASDAQ:OCSL)
  • Flowers Foods (NYSE:FLO)
  • Ares Management (NYSE:ARES)
  • Devon Energy (NYSE:DVN)

7 Dividend Stocks: Extra Space Storage (EXR)

Extra Space Storage (EXR) facility exterior and trademark logo.
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EXR operates as a real estate investment trust (REIT). By structuring as a REIT, the company gets certain tax advantages. For investors it means they’re technically “trust holders” not shareholders, so they are more directly part of the business.

It also means that REITs have to pay out 90% of their taxable income. EXR and most others do this via their dividends. That’s why REITs usually have higher and more durable dividends than other companies that offer dividends.

EXR stock is one the leading self-storage companies out there. And while a good portion of the business is for people that are moving or downsizing, nowadays storage spaces are also for small e-commerce businesses and warehousing for closer logistics to particular markets.

And this trend isn’t going to wane anytime soon. Plus, storage operations are a pretty high margin business, since operating costs are predictable, and overhead is low. And there’s pricing power.

EXR stock has gained 60% in the past 12 months, but its almost 2.65% is rock solid.

This stock has an “A” rating in my Dividend Grader.

First BanCorp (FBP)

Image of a grey cityscape with a large corporate building that features the word bank on it
Source: Shutterstock

This is a good time to be a bank. That may seem counterintuitive in a market with rising inflation and rising interest rates. But the fact is, low interest rates mean banks have less room between the rates they can borrow money and the rates they can lend.

When rates rise, banks have more flexibility and can increase their margins. FBP can do this even better, because it’s a leading bank in Puerto Rico and the Caribbean, which isn’t chock full of banks.

As travel rebounds, this will be good for tourism and investments in properties. Plus, Puerto Rico has some distinct tax advantages for U.S. companies and individuals who live there. Remote work makes it an ideal tropical destination for work and play.

FBP stock is up 35% in the past 12 months and 4% year to date, which is pretty impressive. Its current trailing price to earnings (P/E) is only 11. And its nearly 2.8% dividend is very reliable.

This stock has an “A” rating in my Dividend Grader.

7 Dividend Stocks: National Storage Affiliates (NSA)

A photo of a storage facility hallway.
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Similar to EXR, NSA is a REIT in the self-storage space. What makes NSA unique is the fact that it also operates a Participating Regional Operators (PROs) it engages in third-party acquisitions and joint venture partnerships in strategic locations. That means it can bring in a piece of the action on independent storage operators that can get the services of a national company.

This is a unique structure and makes it attractive since operating de facto franchises lowers some of the market risks of expanding into new markets.

NSA stock has a 3% dividend, and it has delivered a 54% return in the past 12 months.

This stock has an “A” rating in my Dividend Grader.

Oaktree Specialty Lending (OCSL)

hands at desk near laptop computer, with one hand holding a pile of hundred dollar bills
Source: shutterstock.com/CC7

There’s another type of corporate designation that’s similar to REITs called a business development corporation (BDC). This classification was developed to encourage financing for small and medium-sized business by companies outside of traditional financial institutions. That’s why OCSL is named a specialty lender.

But what it means for investors is that they get to invest in a hedge fund. OCSL lends money to companies or arranges financing or takes shares in a company. It manages that portfolio and investors get paid on the performance of the portfolio. And like REITs, those net profits come as big dividend.

Currently OCSL has a 8.59% dividend and a P/E of around 6. And the stock is up 22% in the past 12 months. Just bear in mind, OCSL only has a market cap of $1.3 billion, so it may be more volatile than other, bigger dividend stocks here.

This stock has an “A” rating in my Dividend Grader.

7 Dividend Stocks: Flowers Foods (FLO)

A top view of a package of Dave's Killer Bread,whole wheat flavor.
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You likely have your favorite local bakery. And you also have your favorite bakery products at the grocery store as well. Well, in the past 103 years, FLO has been and continues to be both.

If you’ve seen — or bought — Tastykake, Dave’s Killer Bread, Nature’s Own, Wonder, Sunbeam, or 10 of its other local and regional bread or bakery brands, you know FLO. Starting as a local bakery it went regional. Then started acquiring brands.

Now it owns some of the biggest and up and coming names in the business. I know, it’s not crypto or computer chips. But it’s good business, and a good stock when times get dicey.

Its year to date, one month, three month and 12 month performance numbers are all positive. The latter shows FLO has gained 28%. And it has a nearly 3% dividend to boot.

This stock has an “A” rating in my Dividend Grader.

Ares Management (ARES)

illustration of tall buildings on an upwards arrow
Source: Shutterstock

Similar to OCSL, ARES is classified as a BDC, so it has a healthy 3% dividend. But the big difference between the two is ARES has a $13 billion market cap, so it has a much more diversified business model and portfolio.

It has a real estate division, and it has a brokerage firm. Both slot in nicely when your customers are looking for office space or you think it’s time to take a company public. But that size also means that you trade off some of that dynamism for stability.

Granted, ARES stock has gained almost 50% in the past 12 months. But it also has a bigger portfolio with more debt financing risks. Owning both offsets the risks of the other, however.

This stock has an “A” rating in my Dividend Grader.

7 Dividend Stocks: Devon Energy (DVN)

The logo for Devon Energy (DVN) is displayed on a sign outside an office.
Source: Jeff Whyte / Shutterstock.com

DVN made the news recently because its fourth quarter, fiscal year 2021 earnings report was stunning. Cash flow tripled in 2021, and Q4 cashflow was up 173% compared to the year ago quarter. And DVN authorized a 45% increase in its dividend.

You may have heard the expression, make hay while the sun shines. Well, in oil business, especially for exploration and production (E&P) companies like DVN, it’s man the pumps when prices rise.

E&Ps are the most leveraged sector in the energy patch when it comes to energy prices. And with rising prices due to the Organization of the Petroleum Exporting Countries plus’ (OPEC+) intransigence on pumping more — as well as Russia’s looming threat to invade Ukraine — it means demand for U.S. shale producers is soaring.

DVN stock has a $36 billion market cap at this point, so it’s a big independent E&P. And that means more profits than smaller players.

Get this, the DVN stock has risen nearly 160% in the past 12 months, but its current PE is just about 13. And it has an almost 4.9% dividend at this point. That kind of growth might not last forever, but it’s going to be a good ride with a solid dividend.

Also, DVN has been around since 1971 — before the 1973 Oil Embargo — so it knows how to navigate the tough times as well as the boom times.

This stock has an “A” rating in my Dividend Grader.

On the date of publication, Louis Navellier has positions in EXR, FBP, and NSA in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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