7 Dividend Stocks to Invest In for a Lifetime of Income


  • Verizon (VZ): VZ exhibits growth in postpaid phone subscribers, showcasing market resilience.
  • Comcast (CMCSA): Comcast achieves ARPU growth despite modest subscriber losses.
  • Gilead (GILD): Its financial discipline aids growth potential through expense management.
  • Continue reading for the complete list of dividend stocks to buy!
Dividend Stocks to Buy - 7 Dividend Stocks to Invest In for a Lifetime of Income

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Finding good dividend stocks to buy amid market turbulence is essential in today’s investing environment to maximize profits and minimize risks. These seven dividend stocks to buy have performance indicators that lead in a variety of industries. They also provide intriguing prospects fueled by resiliency, creativity and calculated risks. The first and second are industry titans, showing a considerable increase in their users. Both businesses have grown their clientele despite pressure from the competition, demonstrating a steady need for their services. 

Moreover, companies like the sixth on this list demonstrate careful cost control with capital allocation plans. Finally, the seventh one uses core competencies in financial performance, pipeline innovation, and cancer revenue growth. Without further ado, here are seven dividend stocks to buy to give your portfolio a boost.

Verizon (VZ)

a Verizon storefront building
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The forward dividend yield of Verizon (NYSE:VZ) is 6.41%. Verizon’s operational edge reflects its performance in customer metrics. Even though there was a net loss of 158 thousand postpaid phones in Q1 2024, the company was still up more than 100 thousand net users year-over-year. A 5% YOY uplift in postpaid phone gross additions is the primary driver of this growth. This signifies the efficacious customer acquisition strategies employed by Verizon. Additionally, the postpaid phone churn rate improved somewhat to 0.83%, demonstrating Verizon’s high percentage of customer retention.

Moreover, Verizon’s fixed wireless access (FWA) has become a significant growth market. The firm recorded 354 thousand FWA net additions in Q1 2024, with 151 thousand of those coming from the business segment. Overall, 389 thousand new broadband users were added, of which 53 thousand were added via Fios Internet. Finally, with over 11 million broadband customers, this increase highlights the growing need for Verizon’s dependable, high-quality internet services.

AT&T (T)

AT&T Retail cell phone and mobility store. T stock
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The forward dividend yield offered by AT&T (NYSE:T) is 6.05%. The solid boost in high-value customers that AT&T has derived in both its internet and cellular segments is one of its core advantages. With 349 thousand additions in Q1 2024, AT&T had a sharp boost in postpaid phone net additions. Further, this number highlights the company’s capacity to draw in new clients but also shows. With that, the number of high-value postpaid phone users has increased by 1.5 million annually to over 71.6 million.

Additionally, these subscribers support increased margins and ARPU, suggesting that volume growth is one of many factors driving this increase. The company has added fiber to 27 million residential and commercial premises, representing a 2.4 million YoY increase. The number of fiber subscribers increased by around 1.1 million, bringing the total to almost 8.6 million. Overall, the fiber segment has grown steadily. It demonstrates AT&T’s capacity to efficiently extend its broadband reach, seize a market share and establish itself as a leader in fiber infrastructure.

Comcast (CMCSA)

Keeping NBC News on the Air Could Hamper Comcast Stock
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Comcast (NASDAQ:CMCSA) has a 3.13% forward dividend yield. Despite slight subscriber losses, Comcast increased ARPU by more than 4% in the first quarter of 2024. This propels mid-single-digit residential broadband revenue growth to more than $6.5 billion. An important feature is the harmony between ARPU growth and subscriber retention, which suggests sensible client segmentation and pricing policies. Moreover, Comcast has 32 million subscribers, and internet consumption has increased by double digits year over year. Households using broadband use more than 700 gigabytes of data each month. 

Further, more than 70% of residential customers get 500 Mbps or faster, with almost one-third receiving gigabit speeds. These patterns demonstrate the growing need for high-speed internet and Comcast’s capacity to supply it. Therefore, this allows to sustain revenue growth. Comcast has made large investments in its network infrastructure; as a result, mid-split installations have doubled YoY and currently account for 40% of the footprint.

Overall, these enhancements are essential to enabling multi-gigabit symmetrical speeds, maintaining network capacity, and positioning the business for long-term market share growth and broadband subscriber growth.

Gilead Sciences (GILD)

A Gilead Sciences (GILD) sign at the company headquarters in Silicon Valley, California.
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The forward dividend yield offered by Gilead Sciences (NASDAQ:GILD) is 4.81%. The company’s development potential is supported by its fundamental strengths, which include its smart capital deployment and financial discipline. For the second consecutive quarter, the business derived a 2% YoY drop in selling, general and administrative spending and research expenses. Indeed, this signifies Gilead’s focus on sharp cost control, improving its capacity to invest in expansion prospects.

Additionally, a vital part of Gilead’s capital allocation strategy is its emphasis on giving shareholders their money back through dividends and share repurchases. The business returned almost $1.4 billion to stockholders in the first quarter. Furthermore, Gilead’s strategic effort to broaden its medicinal range is shown in the CymaBay purchase. Despite the CymaBay purchase, Gilead continues to project significant profitability in 2024. With Veklury excluded, overall product sales are estimated at $25.8 billion to $26.2 billion, indicating a 4% to 6% YoY rise for the firm’s basic business. Overall, the company anticipates total product sales to range between $27.1 billion and $27.5 billion.

British American Tobacco (BTI)

British American Tobacco logo on a building
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The dividend yield for British American Tobacco (NYSE:BTI) is 9.53%. That is the highest dividend on this list of stocks to buy! With double-digit revenue growth, the company is solid in Africa, the Middle East, Eastern Europe, Asia-Pacific and Middle East Africa. This has more than compensated for the adversities prevailing in the US market. Further, the company has started implementing focused initiatives in the US to resurrect its business in consumables. Investments in premium categories, such as the Newport soft pack, have increased volume share by 0.4% and premium share by 60 basis points. 

Moreover, Lucky Strike’s quick rise highlights British American Tobacco’s smart market execution. The product has reached a 4% national volume share in just three years after launch. The company’s introduction of tobacco-free consumables has strengthened its product line. With volume up 33.6% and revenue up 39%. Modern oral products have also experienced tremendous growth, fueled by product innovation and worldwide expansion. Finally, the impressive results in developing nations like Kenya and Pakistan demonstrate the company’s capacity to develop and adapt in various regulatory contexts.

Realty Income (O)

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Realty Income (NYSE:O) has a 5.79% projected dividend yield. As of the end of the first quarter of 2024, the company’s portfolio health remained strong. The high occupancy rate of 98.6% was unchanged from the prior quarter. Additionally, the organization’s tenant base is quite diverse, with over 1,500 clients from 7 European nations and all 50 U.S. states.

Further, tenants on the credit watch list accounted for 5.2% of the annualized rent of the entire portfolio as of the end of the quarter, consistent with previous averages. Additionally, every customer pays at most 1% of the yearly rent for the whole portfolio. This lessens the effect of individual tenant defaults on the stability of the overall finances. Overall, due to its high FCF, the company is less sensitive to capital market volatility. It can fund its expansion plans internally rather than turning to the debt or stock markets.

Pfizer (PFE)

Pfizer logo on Pfizer building. Pfizer is an American pharmaceutical corporation.
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The dividend yield attached to Pfizer (NYSE:PFE) is 5.71%. Pfizer had an operational revenue rise of 11% when Comirnaty and Paxlovid sales were excluded. However, there was a 19% operational reduction in overall company revenues due to decreased demand for COVID-19 medicines. This expansion demonstrates Pfizer’s tenacity and capacity to generate income from its main product line. Compared to Q1 2023, Pfizer’s adjusted gross margin increased by 5.3% to 79.6% in Q1 2024. This improvement results from several factors, such as a positive sales mix, adjustments made for product returns, and effective cost control throughout the production process.

Notably, despite incurring costs related to the acquired Seagen company, Pfizer exhibited rigorous cost control. This is reflected in the slight 1% increase in total adjusted operating expenditures. By the end of 2024, Pfizer expects to have saved $4 billion in net costs thanks to this methodical strategy. Pfizer’s strong financial results reflect its underlying qualities and ability to overcome obstacles like the drop in demand for its COVID medication. Overall, the vital increase in gross margin highlights Pfizer’s emphasis on streamlining its cost structure and product mix to maximize profitability. And, places it firmly among dividend stocks to buy to give your portfolio a boost.

As of this writing, Yiannis Zourmpanos held long positions in VZ, T, BTI and PFE. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

Article printed from InvestorPlace Media, https://investorplace.com/2024/06/7-dividend-stocks-to-invest-in-for-a-lifetime-of-income/.

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