In the ever-evolving financial realm, dividend stocks to buy continue to hold a revered space in a savvy investor’s portfolio. These dividend-yielding stalwarts offer a steady income source, along with a pathway to augment your portfolio’s value over time, by redeploying dividend payouts into the underlying company. In the current scenario, with market valuations softening, the importance of dividend payments becomes even more pronounced.
The allure of investing in dividend stocks lies in the confluence of appreciating share price and regular dividend payouts, resulting in heightened returns over time for the patient investor. As we navigate through this landscape, the spotlight now turns to three top dividend stocks to buy. Each one represents a blend of solid growth prospects and rewarding dividend payouts.
Dividend Stocks To Buy: EPR Properties (EPR)
Embarking on a dividend-rich journey, EPR Properties (NYSE:EPR) stands out in the bustling real-estate-investment-trust ( ) landscape with its unique portfolio of assets. Leveraging experiential properties like AMC Theatres and Topgolf, EPR Properties taps into diverse consumer interests. Consequently, EPR drives consistent traffic and provides a robust revenue stream. Moreover, a tangible commitment to investors gleams through its mandate of redistributing 90% of net earnings.
Additionally, it boasts a lush annual dividend yield hovering around 8.1% and a most recent monthly dividend chiming in at 28 cents. Moreover, the stock is ticking in the green this year, delivering a 7.5% return year-to-date (YTD). This is quite an achievement amidst the choppiness in the market. Its revenues spiked by 8% in the second quarter, with its funds from-operations figure of $1.28 beating analyst estimates for the tenth consecutive quarter.
JPMorgan Chase (JPM)
Amidst the banking whirlwind, JPMorgan Chase (NYSE:JPM) emerged as a financial stalwart. With its stock trading in the green this year, it has effectively navigated the current banking crisis. This underscores its stature among the giants in the financial services sphere. Posting a superb second quarter, with a net income of $14.5 billion, and diluted earnings that hit $4.75 per share, this banking juggernaut beat market anticipations by a comfortable margin.
On the dividend front, JPMorgan sweetened the deal for investors following a triumphant stride through the U.S. Federal Reserve’s recent stress test. It subsequently uplifted its quarterly dividend by 5%, settling at $1.05 per share. This move, signaling both stability and confidence, amplifies its commitment to dividend growth.
British Petroleum (BP)
Oil giant British Petroleum (NYSE:BP) has elegantly waltzed through a complex financial scenario. The company continues to reward its stockholders despite market headwinds. August witnessed a 10% bump in its quarterly dividend payment, confidently scaling to 44 cents a share and enticing investors with an almost 5% yield. This unexpected yet welcome reward sheds light on BP’s resilient financial strategy amidst fluctuating tides in the oil market.
The subsequent announcement of a plan to buy back a substantial $1.5 billion of its stock in the third quarter, especially following a first-half impacted by slumping oil prices, is heartening. Moving forward, a hopeful trajectory forms for the firm if rising crude prices hint at the resurgence of profits and free cash flows. Anticipating a future delicately brewed with further potential dividend hikes and stock buybacks, BP sails into a future with considerable aplomb.
Enel Chile (ENIC)
Enel Chile (NYSE:ENIC), nestled in the heart of Santiago, stands tall as Chile’s electric luminary. ENIC illuminates the country through a variety of energy sources. It harnesses the power of thermal, hydroelectric, wind, geothermal, and solar energies, complemented by a natural gas distribution arm. Enel Chile paints a diverse, forward-looking, and responsive energy portrait.
Currently trading slightly under the $3 mark, the company showers its shareholders with a generous annual dividend yield of 11.8%. Its latest quarterly dividend rings in at 32 cents. Moreover, it’s trading at just 0.86 times forward sales estimates, which is almost 100% lower than its 5-year average at 267.60.
Peering into Chile’s booming economic horizon, an anticipated surge in energy consumption — pegged at a hearty increase of over 20% this decade — promises robust opportunities. As the nation’s premier electricity provider, Enel Chile is strategically positioned to ride this wave, expanding on its profitability margins.
Starbucks (NASDAQ:SBUX), the Seattle-based coffee maestro, recently bumped its quarterly dividend payout by 7.5% following a robust second quarter earnings reveal. Shareholders are set to receive a dividend of 57 cents a share, up from the preceding 53 cents. Thus, the coffee giant manifests its 13th consecutive year of dividend amplification. Amidst these strides, March brewed a pivotal leadership transition, witnessing Howard Schultz hand over the leadership reins to Laxman Narasimhan.
Schultz’s era at Starbucks was nothing short of extraordinary, successfully navigating through the waves of unionization and orchestrating a rebranding that cascaded its global footprint. Despite the challenges, particularly in its substantial Chinese market during the pandemic, Starbucks has continually displayed steely resilience and remarkable adaptability.
Gazing into 2024, Starbucks’ rejuvenation in China, its second-largest market, paints an impressive picture of recovery. A whopping 46% same-store sales growth in the third quarter post-pandemic emerges, truly, as a testament to the brand’s undeterred spirit and strategic prowess, affirming its position in the bustling retail coffee space.
Navigating through the puzzling financial whirlwind, Pfizer (NYSE:PFE) finds itself down roughly 35% YTD valuation descent, igniting market trepidation concerning its growth trajectory. Consequently, PFE stock now perches at a remarkably deep valuation gap, at just 6.9 times forward earnings. Amidst the echoes of concern, the pharmaceutical titan is meticulously crafting pathways to alleviate growth apprehensions. Thus, PFE is constructing a robust fortress of future stability.
Anchoring the first strategy involves a commitment to research and development, leveraging a profound research pipeline anticipated to inject an additional $20 billion in sales by 2030. Combined with new acquisitions, the goal is to effectively secure $25 billion of fresh revenue from new business ventures at the end of the current decade. Moreover, its second quarter results show robust sales at a towering $12.73 billion. Coupled with a net income of $2.33 billion, this further cements its financial vigor amidst a climate of uncertainty. It remains an excellent dividend stock, offering 12 years of consecutive growth and almost a 5% yield. It’s definitely worth considering adding PFE to your list of dividend stocks to buy now.
The iron ore segment stands as the linchpin for Vale (NYSE:VALE), driving both its sales and cash flow with unmatched vigor. Recent surges in China’s economic underpinnings have hoisted iron ore prices to new heights, with tailwinds destined to propel VALE stock.
Company financials bolster this optimism, with Vale’s second quarter EBITDA hitting a commendable $4.1 billion. Even amidst pricing hiccups, projections tease an annual EBITDA of $16 billion to $18 billion. Moreover, Vale has ventured into the realm of energy transition metals, embracing copper and nickel. Moreover, the dividend dynamo flaunts an enviable yield of over 5.5%, positioned for an impressive breakout. A brighter 2024 looms with the winds of potential rate reductions. Addtionally, an uptick in iron ore prices promises more powerful quarters ahead compared to 2023’s first half. Stabilized by a robust balance sheet and a multifaceted product suite, Vale is attractive at present valuations.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.