SPECIAL REPORT The Top 7 Stocks for 2024

3 Dividend Stocks to Buy for Consistent Income

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  • These dividend stocks for reliable income streams will help your earnings flourish over time.
  • Verizon Communications (VZ): VZ has a history of increasing dividends for 16 consecutive years.
  • Coca-Cola (KO): Coca-Cola’s impressive dividend history has almost 60 years of continuous payments.
  • Johnson & Johnson (JNJ): JNJ operates in the healthcare sector and is boasting healthy financials.
dividend stocks for income - 3 Dividend Stocks to Buy for Consistent Income

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In the dynamic world of investing, dividend stocks have always been a consistent way for investors to generate income. These stalwarts not only offer a steady income stream but also demonstrate the power of compounding returns. Imagine a scenario where your portfolio receives a consistent boost, safeguarding your investments against the unpredictable waves of market fluctuations.

Moreover, the dividends from these stocks carry a positive connotation, often reflecting the underlying company’s financial health and its commitment to shareholder wealth. It’s worth noting that this strategy aligns caution with potential gains. The regular inflow of dividends lays a robust foundation for a durable financial outlook.

Finally, let’s delve into the investment landscape, seeking out those dividend-paying gems that promise enduring income rather than short-lived spikes. Every dividend payment is a stride towards achieving your long-term financial goals, merging the promise of stability with the thrill of growth.

Verizon Communications (VZ)

5G stocks, VZ stock
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In the world of dividend stocks for income, Verizon Communications (NYSE:VZ) has always been a formidable name. Despite a challenging year with a loss of 10% year-to-date (YTD), the company’s latest earnings report reveals a robust foundation. Verizon’s revenue stands at $33.34 billion, though it’s a slight dip of 2.6% year-over-year. The resilience shines through its operating expenses, up by 4.3%, indicating strategic investments.

The telecom giant reported a net income of $4.76 billion, a marginal decrease of 2.8% from the previous year. It’s worth noting, however, that this figure aligns with a broader industry trend rather than isolated turbulence. With an earnings per share of $1.22, down by 7.6%, investors might pause, but the fuller picture offers a silver lining. The company’s EBITDA at $12.27 billion, slightly down by 0.6%, reflects stable operational profitability.

Verizon’s balance sheet tells a story of prudent asset management. Cash and short-term investments have soared impressively by 100.8%, sitting at $4.31 billion. Total assets grew by 2.6% to $384.83 billion, an indication of Verizon’s enduring asset value. Interestingly, total liabilities have marginally decreased by 0.2%, showcasing a subtle yet significant reduction in debt levels.

Shareholders can find solace in Verizon’s equity performance. With total equity maintained at $99.09 billion and a stable price-to-book ratio, the company retains its solid standing in the market.

With a peppy dividend yield of 7.4% and a P/E ratio that remains competitive at 7.2, Verizon stands tall as a beacon for investors seeking income.

Coca-Cola (KO)

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Coca-Cola (NYSE:KO) stands as a testament to resilience in an ever-volatile market, with a slight YTD return dip of 9%. Despite market headwinds, the company has demonstrated commendable growth, particularly in its latest quarterly earnings. With an impressive revenue increase to $11.95 billion, up by 8%, Coca-Cola showcases its robust market presence. Operating expenses rose to $3.66 billion, a reflection of strategic investments yielding a notable net income jump to $3.09 billion, up by 9%.

The net profit margin, an essential health indicator, remains strong at 26%. EPS also saw a healthy rise to 74 cents, marking a 7% increase. And the company’s EBITDA, a measure of profitability, rose 10% and stands solid at $3.93 billion.

Coca-Cola’s balance sheet reinforces its financial tenacity, with total assets climbing to $97.58 billion, a 6% year-over-year growth. Cash and short-term investments have burgeoned to $15.44 billion, reflecting an impressive 17% increase.

In terms of investor returns, Coca-Cola remains a classic dividend stock for income, offering a dividend yield of 3.2%. Its P/E ratio stands at a reasonable 23, and with a dividend declaration of 46 cents, it continues to reward shareholders consistently.

Johnson & Johnson (JNJ)

A red Johnson & Johnson (JNJ) sign hangs inside in Moscow, Russia.
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Johnson & Johnson’s (NYSE:JNJ) recent earnings illuminate a stark contrast, despite a year-to-date dip of 15.3%, net income skyrocketed by 483.9%. A revenue boost to $21.35 billion and a modest 4.6% rise in operating expenses underscore solid fundamentals. The net profit margin astonishingly hit 121.9%, reflecting remarkable efficiency.

EPS edged up to $2.66, marking a 4.3% increase, while EBITDA improved 12.5% to $8.25 billion. However, cash assets saw a 31% drop. Still, with total assets at $166.06 billion, the company’s financial footing remains strong.

Liabilities receded by 5.7% to $94.83 billion, showcasing prudent financial management. The return on assets and capital stand at 9% and 14.4%, signaling robust profitability. The P/E ratio at 11.2 and a 3.2% dividend yield present Johnson & Johnson as an undervalued dividend stock, ideal for income-seekers.

If you are on the lookout for dividend stocks for income, this one is certainly worth exploring. Its resilience and innovation keep it in the spotlight for investors.

On the publication date, Faizan Farooque did not hold (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.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.


Article printed from InvestorPlace Media, https://investorplace.com/2023/11/3-dividend-stocks-to-buy-for-consistent-income/.

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