Check out the guide to the best dividend stocks that can help you achieve financial freedom. The first star in this investing galaxy, with a 5% dividend yield, is glowing brightly. The firm is not just a passive investment; it is a dynamic force positioned for exponential expansion, with a strategic focus on growing market share and strengthening its branch network.
Examining the dividend universe in more detail, the second one has a respectable 2.4% prospective dividend yield. Supported by its strong capitalization and unwavering position in the Mexican market, the firm presents itself as a solid financial stability pillar, offering steady returns to astute investors pursuing long-term success.
However, the adventure is far from over. The third one is a promising investment due to its alluring 3.8% dividend yield. With record-breaking premium growth, the firm is headed for unheard-of financial success, which is symptomatic of skyrocketing demand for its insurance products. Read more to learn the fundamentals of financial freedom through these dividend raptors.
Northrim BanCorp (NRIM)
The dividend yield (forward) that Northrim BanCorp (NASDAQ:NRIM) provides is 5%. The average interest-bearing deposit for Q4 2023 increased by 6% from Q3 and 9% from Q4 2022. Northrim BanCorp’s development trajectory is primarily attributed to its persistent attempts to increase its branch network and market share. The rise in average interest-bearing deposits demonstrates the efficacy of the business’s tactics in luring and keeping consumer deposits.
Moreover, Northrim’s emphasis on liquidity management guarantees its stability in the face of economic fluctuations. This, in turn, promotes depositor trust and opens up new avenues for growth. Furthermore, as of 2023, the total loans in the portfolio were $1.79 billion, up 4% from the previous quarter and 19% from 2022.
Additionally, Northrim BanCorp’s community banking business has demonstrated substantial success. This can be seen in the consistent expansion of portfolio loans and total deposits. Hence, the main drivers of this expansion are the development of a new clientele, the increase in market share, and the retention of mortgages.
Finally, the firm is strengthening its income base. Thus, as long as it keeps attracting deposits and making loans, it creates a solid basis for future growth.
International Bancshares (IBOC)
The dividend yield for International Bancshares (NASDAQ:IBOC) is 2.4% going forward. The total amount of money that International Bancshares reported being available to pay dividends from its subsidiary banks in 2023 was almost $1.3 billion. This is an important measure of the holding company’s ability to obtain dividend payments from its bank subsidiaries.
Moreover, International Bancshares may use all $1.3 billion and remain “well capitalized” under the capital regulations in effect on December 31, 2023. This shows that International Bancshares’s regulatory capital needs and dividend payment potential are in line. International Bancshares exhibits a solid financial position that supports stability and expansion, as evidenced by its capacity to pay dividends and surpass regulatory minimums.
International Bancshares is well-established and stable in the Mexican market, especially in the northern region. The deposits made by clients and entities in Mexico mark a considerable fraction of the deposit base held by its subsidiary banks. Hence, these deposits held around 29%, 28%, and 25% of the total deposits held by the subsidiary banks for 2023, 2022, and 2021.
Horace Mann (HMN)
A core performance indicator for insurance companies such as Horace Mann (NYSE:HMN) is premium growth, which indicates their products’ popularity. The company offers a 3.8% forward dividend yield. In 2023, Horace Mann recorded record net premiums written and $1.5 billion in contract deposits, demonstrating the high demand for the insurance products the business offers. The considerable rise in deposits and premiums indicates the business’s capacity to attract clients in a highly competitive market.
Furthermore, the Property & Casualty category had an increase in premiums. This is an 11% increase in 2023 over the previous year. This expansion demonstrates how well the business has driven premium growth in a challenging market environment through its underwriting initiatives and pricing methods.
Finally, the efficacy of the company’s underwriting efforts and price changes was demonstrated by the notable increase in vehicle premiums caused by the cumulative impact of rate actions. Therefore, the rise in vehicle insurance rates highlights Horace Mann’s aptitude for risk management and competitive insurance pricing.
Trinity (TRN)
Trinity (NYSE:TRN) produces a forward dividend yield of more than 4%. The company shows good railcar delivery performance and has a healthy backlog. This suggests that there is a constant need for its products. In 2023, the firm recorded deliveries of 17,355 railcars, of which 4,000 were made in Q4 alone. Despite obstacles like border closures that hinder shipping, Trinity showed tenacity in satisfying client needs and completing orders.
With a sizable backlog of $3.2 billion at year’s end, Trinity can plan operations efficiently and pursue new business prospects. Since it has insight into future production and revenue streams, This backlog highlights Trinity’s competitive position and market leadership in the railcar manufacturing sector and reflects strong customer demand.
All in all, Trinity’s capacity to maintain a positive backlog and secure a sizable portion of industry orders further attests to its products’ quality, strong customer connections, and responsiveness to market demand. Thus, Trinity can continue to grow and create high valuations by efficiently using its backlog and fulfilling delivery obligations.
Walgreens Boots Alliance (WBA)
Walgreens Boots Alliance (NASDAQ:WBA) has a 4.9% dividend yield (forward). In Q1 2024, Walgreens Boots Alliance’s revenue increase was driven mainly by pharmacy sales. According to the firm, pharmacies had a notable 10.7% rise in revenue in Q1 2023. Strong performance in comparable pharmacy sales, which increased by 13.1%, further bolstered this rise and illustrated the company’s dominant position in the healthcare industry.
Additionally, Walgreens Boots Alliance has maintained its share of script volume in the U.S. despite several obstacles, including a weaker flu and respiratory season and Medicaid redeterminations that impacted market growth. This is a tribute to the company’s competitive strength and devoted client base.
Overall, the company emphasizes delivering pharmacy services, such as vaccines. This helped to fuel the expansion of pharmacy sales. Similarly, this reflects the company’s capacity to adjust to changing healthcare trends and seize the demand within the pharmacy sector to generate income.
Pfizer (PFE)
Pfizer (NYSE:PFE) offers a forward dividend yield of over 6%. By the end of 2024, its cost realignment effort can generate at least $4 billion in net cost savings annually. This reflects its focus on enhancing operational efficiency and streamlining its cost structure.
Furthermore, these cost reductions may improve Pfizer’s profitability and margin growth. However, the efficacy of cost-cutting measures and how much they streamline processes without sacrificing innovation or product quality will determine their effectiveness.
To optimize growth potential, Pfizer has identified five key strategic priorities. These include leading the world in oncology, delivering pipeline innovation, optimizing the performance of new products, increasing margins through cost realignment, and increasing shareholder value through capital allocation. For instance, Pfizer’s operating revenue increased by 7% due to in-line product growth and the introduction of new products.
Overall, Pfizer’s capability to persevere in generating revenue growth through strategic priorities.
Verizon (VZ)
The forward dividend yield offered by Verizon (NYSE:VZ) is close to 6.5%. Verizon’s total revenue growth in cellular services is also influenced by its performance in various geographic markets. Compared to non-C-Band markets, deploying the C-Band spectrum in certain markets has produced improved performance indicators.
For instance, the gross add growth of consumer postpaid phones was eight percentage points greater in the first 76 C-Band areas than in non-C-Band regions. Furthermore, C-Band markets had 0.04% lower churn rates, demonstrating the beneficial effects of network upgrades on customer acquisition and retention.
With forecasts indicating a 2% to 3.5% rise in overall wireless service revenue, Verizon expects to continue growing its income from wireless services through 2024. Anticipated positive postpaid phone net additions, sustained growth in fixed wireless access customers, and the uptake of premium unlimited plans and services all lend credence to this view.
Finally, the company’s consumer postpaid phone customer turnover rate was steady at 0.88%. Verizon maintained steady churn rates in 2023 while enacting over $1 billion in yearly price measures, demonstrating great customer happiness and loyalty.
As of this writing, Yiannis Zourmpanos held long positions in HMN, WBA, PFE, and VZ. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
