From an investing risk perspective, long-term dividend stocks are on the lower end of potential losses. Companies with reliable dividend payouts have equally reliable cash flows, making them stable.
Although not as potentially rewarding as high-growth stocks like Innodata (NASDAQ: INOD), dividend stocks also give investors a cushion during market volatility. After all, because of low expectations, established dividend stocks are more resilient to market swings than growth stocks.
For this relatively safe buy-and-forget investing strategy, here are three stocks to consider.
Altria Group, Inc. – 8.17% dividend yield at $4.08 annual payout per share
Since our coverage in April, Altria Group (NYSE:MO) stock has been up from $40.75 to $50.07 per share, giving investors a potential 23% return. Altria’s dividend yield remains one of the highest. This is not surprising given the reliability of its tobacco and smoke-free products’ daily usage.
As previously noted, Altria continues the strategic shift to a smoke-free lineup of products. Heading it is NJOY e-vapor brand that tracked strong demand in this emerging market, having its quarterly shipment volume increased by 80% to 1.8 million devices in Q2 2024 earnings.
Likewise, the tobacco-derived nicotine (TDN) lineup, within the Oral Tobacco Products division, gained 37% YoY shipment volume growth for on! brand alone in Q2. From FY 2019 to FY 2023, Altria Group returned $32 billion to shareholders via dividends, and $5 billion via stock buybacks.
At the end of the month, on October 31st, Altria Group is scheduled to deliver its Q3 earnings report. This will likely cause volatility in the MO stock price. The company will have to beat $1.36 earnings-per-share (EPS) forecast, compared to $1.28 EPS reported in the year-ago quarter.
Against the 52-week average of $45.05, the average MO price target is $46.33 per share. Year-to-date, MO stock is up 20%, making it a slow grower but a reliable source of high-dividend income.
Movado Group Inc. – 7.61% dividend yield at $1.40 annual payout per share
Established all the way back in 1881, in Switzerland, Movado Group Inc (NYSE:MOV) is known for its luxury watches, jewelry and accessories. By catering to high-end clients, the company has shown resilience to economic downturns and quick rebounds.
Moreover, Movado partners with manufacturing companies in addition to holding lucrative licensing agreements for brands. After Apple (NASDAQ: NASDAQ:AAPL) made smartwatches popular, the company launched its first smartwatch lineup in 2016, across its portfolio of brands such as Lacoste, Tommy Hilfiger, Hugo Boss, Coach, Juicy Couture and Scuderia Ferrari (NYSE:RACE).
Venturing into the smartwatch market further to cater to millennials, Movado acquired MVMT smartwatch startup in 2018 for $100 million.
In Q2 2024 earnings (fiscal 2025), the company reported flat net sales of $159.3 million vs $160.4 million in the year-ago quarter. Through the careful management by CEO Efraim Grinberg, Movado holds zero debt.
During H1 2024, Movado returned $15.5 million to shareholders via dividends and $1 million via stock buybacks. Year-to-date, MOV stock is down 38% due to concerns about consumers’ discretionary spending power. Against the 52-week average of $25.77, MOV stock is now priced at $18.63 per share.
LyondellBasell Industries N.V. – 6.06% dividend yield at $5.36 annual payout per share
Nearly every product on the market owes its existence to chemicals and plastics. Dutch LyondellBasell Industries NV (NYSE:LYB) plays a key role in the global supply of omnipresent polymers polyethylene (PE), polypropylene (PP), specialty chemicals and fuels.
In other words, LyondellBasell is a chemical equivalent to Dutch ASML (AS:ASML) in the semiconductor sector, although the latter has near-monopoly in the EUV lithography chipmaking tech. On November 1st, LyondellBasell is scheduled to deliver its Q3 2024 earnings.
In the last Q2 report, the company delivered $924 million net income, up from $715 million in the year-ago quarter. This was despite net sales staying relatively flat at $20.5 billion during the same period. A large part of that boost was due to divestiture of non-core Ethylene Oxide & Derivatives (EO&D) business in May to INEOS.
Through stock buybacks and dividends, LYB returned $513 million to shareholders in the quarter, ending up holding $2.9 billion in cash and $7 billion in available liquidity. Year-to-date, LYB stock is down 8.57% as EO&D sale created short-term volatility. Against the 52-week average of $96.57, LYB stock is currently priced at $88.315, with the average price target at $105.36 per share.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.