If you want to earn money without working for it, investing can prove to be your secret sauce. Picking the right stocks is crucial, but to make money, you need to choose dividend stocks.
It is a slow and steady way to build wealth. These are companies that have a strong record of dividend payments and can withstand the market’s ups and downs. Fundamentally strong businesses can thrive in any economic situation while rewarding shareholders for their investment. Let’s explore building a stable, passive income portfolio with these three dividend stocks for 2024.
Enterprise Products Partners (EPD)
Enterprise Products Partners (NYSE:EPD) is provides energy services to producers and consumers of petrochemicals, natural gas, natural gas liquids, and crude oil. With a diversified portfolio. it has multiple segments.
The company makes money by charging a fee to the companies that make use of its assets. This ensures consistent, steady revenue and can sustain a high dividend. Enterprise Products Partners has a dividend yield of 7.50% and has been paying consecutive dividends for the past 25 years. Its current quarterly dividend is $0.52 per share.
The company’s assets put it in a very strong position in the industry, and it can transport over 12.2 million barrels of crude oil daily. It is building two new natural gas processing plants in the Permian basin. Additionally, it has invested over $2 billion for expansion in 2023.
Trading at $27, EPD looks undervalued. With a dividend yield as high as 7%, dividend investors must add this stock to their portfolio. It has grown the dividend payouts at the rate of 3.6% in the past three years. In short, it offers enough liquidity to continuing rewarding shareholders.
Fundamentally, Enterprise Products Partners holds a strong position. Its revenue came in at $12 billion for the third quarter, and the operating income was $1.70 billion. The EPS stood at $0.60 and it expects to see a 6.6% year-over-year (YOY) increase at $0.69 for the fourth quarter. EPD stock is up 7% in the past year and has been moving in the range of $24 to $27. However, don’t expect the stock to soar anytime this year. But the dividend income will help pay for a few of your expenses.
One of the biggest names in the beverage industry, Coca-Cola (NYSE:KO) is a global brand holding a strong market share. Also, it is Warren Buffet’s favorite company. While KO stock is trading at $59 today, it enjoys an impressive dividend yield of 3.08%.
The company has been able to thrive despite inflation and low consumer spending. Additionally, it hiked prices and saw a surge in volume which shows that it enjoys industry pricing power. It reported an 8% rise in annual revenue, coming in at $11.95 billion. Further, the company expects to see a rise in organic sales by 10% to 11% in 2024.
As the economy improves, we could see Coca-Cola report strong revenue numbers and gain higher market share. The biggest competitor of PepsiCo (NASDAQ:PEP) has a higher dividend yield and is much cheaper than PEP stock. Being over 100 years old, Coca-Cola has seen the ups and downs of the market and survived them all. It is a dividend aristocrat with 62 years of payout hikes.
Many choose Coca-Cola over Pepsi for its high dividend yield, steady market growth, and impressive free cash flow. KO stock will bring stability to your portfolio and ensure steady returns despite market volatility. Notably, its products are sold across 200 countries. Clearly, it is a business that will never lose the sheen.
Also, it has healthier beverage options which are now meeting the changing demands of consumers. People are not going to stop drinking soft drinks, so Coca-Cola will continue to grow. Its dividend track record, brand loyalty, and profitability make it one of the top dividend stocks for 2024. This is one stock to buy and hold for the long term.
Procter & Gamble (PG)
Another globally recognized name, Procter & Gamble (NYSE:PG) enjoys longevity. Recently, the company reported impressive results which boosted its stock. It reported an EPS of $1.84 and a revenue of $21.44 billion.
For 2024, the company expects to see earnings growth of 8% to 9% and sales growth between 2% to 4%. Known for some of the biggest brands, Procter & Gamble has established itself in the industry, surviving many hills and valleys in the past 100 years.
PG had a tough year due to high inflation and low consumer spending. But it is now seeing an improvement in the numbers. A positive outlook means a boost to the stock, now up 5% in the past month and 10% in the past year. Trading at $156 today, the stock is nearing a 52-week high of $158 and could even hit a new high in the coming weeks.
It has paid dividends for the past 133 consecutive years and has also increased the payout for 67 consecutive years. This stock will bring stability to your portfolio with its dividend yield of 2.41%. Paying a quarterly dividend of $0.94, it has enough liquidity to continue rewarding shareholders. An improvement in the economy and price hikes could further help the company boost margins this year.
On the date of publication, Vandita Jadeja did not hold (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.