One of the best ways to keep your portfolio safe and generate consistent income is investing in dividend stocks. And when they’re paid out by reputable companies that have raised dividends for years, they have lasting strength and stability.
For example, let’s look at American States Water (NYSE:AWR).
American States is a water and electrical utility company that’s been around since 1929. For the last 69 years, it has consistently increased its dividend. Not only are you owning a reliable company with financial stability, you are also owning a stock that continues to pay.
That’s the kind of security to keep your retirement safe. So, let’s explore other reliable and safe dividend stocks to buy and hold now.
Realty Income (O)
With a yield of 5.51% and interest rates likely to drop in 2024, Realty Income (NYSE:O) is a steal at current prices. Since bottoming out around $46, it ran back to $55.80. Now, if it can break above resistance at $56.09, it could potentially run back to $60 a share, near term.
Even better, Realty Income is a reliable, dividend-paying powerhouse that should thrive with interest rates likely to dip. Already around for 50 years, it’s managed to survive every major historical economic disaster and recovery. And it’ll probably be around for another 50 with even higher yields down the road.
With 13,100 properties, it’s still seeing strong demand, with an occupancy rate of 99%. In fact, Realty Income has some of the most reliable tenants on the market. Those include Dollar General (NYSE:DG), Walgreen’s (NASDAQ:WBA), Dollar Tree (NASDAQ:DLTR), FedEx (NYSE:FDX), BJ’s (NYSE:BJ), CVS (NYSE:CVS), Walmart (NYSE:WMT), and Lowe’s (NYSE:LOW).
AT&T (T)
With a yield of about 6.5%, AT&T (NYSE:T) is another top dividend stock to consider for the long term. While the first half of 2023 was a disaster for the telecom, it recently jumped from about $13.50 to $17.18. From here, I’d eventually like to see it refill its bearish gap around $19 a share.
Helping, analysts at Citi just raised their price target to $18, with a buy rating. That was after “AT&T reported strong Q3 results, with better than anticipated volumes from postpaid phones and fiber net adds and EBITDA growth of 4.6%,” as noted by TheFly.com.
Even better, AT&T director Stephen J. Luczo just bought $971,875 worth of AT&T shares at an average price of $15.55. Plus, AT&T has been running on news it’ll spend $14 billion on network equipment in a deal with Ericsson (ERIC).
“With this collaboration, we will open up radio access networks, drive innovation, spur competition and connect more Americans with 5G and fiber,” said Chris Sambar, executive vice president of AT&T Network, as quoted by Barron’s.
SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
Finally, dividend-paying ETFs, like the SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD) are a catch.
With an expense ratio of 0.07% and a yield of 4.81%, the ETF provides dividend income and the opportunity for capital appreciation, according to State Street Global Advisors. Some of its top holdings include NRG Energy(NYSE:NRG), Phillips 66 (NYSE:PSX), Packaging Corp. of America (NYSE:PKG), and IBM (NYSE:IBM) to name a few.
After a volatile year, the ETF recently bottomed out around $33 and ran to $37.62 in recent weeks. Now, if it can break above resistance around $38.44, it could test $40 again soon.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
