Dividends provide a steady return stream. Set and forget dividends stocks for risk-averse investors.
For companies to elicit support from investors, being successful is just the first step. Companies with a proven track record of paying and raising dividends over the years elicit the most vital shareholder loyalty.
This is especially noteworthy if they can power through economic downturns without cutting dividend payouts. Here are three dividend stocks under $50 per share that fit the bill in 2024 and beyond.
1. Verizon Communications
6.72% dividend yield, annual $2.66 per share
There are few investment thesis as clear as Verizon (NYSE:VZ). Telecommunications power modern civilization. And the infrastructure supplier for that need gets to receive stable recurrent profits.
Per the Q4 2023 earnings report, Verizon is ahead of schedule to gain 4 – 5 million subscribers by the end of 2025. The quarter brought 413,000 net broadband subscribers, making it the fifth consecutive quarter with over 400k net additions.
The company broadened its wireless service revenue by 3.2% year-over-year to $19.4 billion. For the sector, Verizon achieved 1,460,000 retail postpaid net additions. Although Verizon’s full-year operating revenue of $134 billion is down 2.1% compared to 2022, its cash flow increased by 1% to $37.5 billion.
Verizon’s free cash flow is up 32.6% to $18.7 billion compared to FY 2022. Due to the higher interest rate environment that is heading for cuts this year, Verizon’s adjusted EPS is $4.71 compared to the full-year EPS for 2022, which is $5.18.
Based on 22 analyst inputs pulled by Nasdaq, VZ stock is a “buy.” The average VZ price target is $41.64 vs the current $42.32. The high estimate is $47, while the low forecast is $31 per share.
2. Altria Group
9.68% dividend yield, annual $3.92 per share
Despite a negative reputation, tobacco companies have a large and loyal customer base. According to WHO, there are 1.25 billion tobacco users, and their numbers are not likely to decline to under one billion during the decade. Tobacco companies have a large and loyal customer base despite a negative reputation
In addition to owning iconic smokeable brands like Marlboro and Camel, Altria (NYSE:MO) multinational expanded to smokeless products and e-cigarettes, such as IQOS and MarkTen. Altria has mastered the economy of scale, marketing, and distribution as one of the top tobacco companies.
The company is yet to deliver its Q4 2023 earnings report on February 1st. In prior Q3 earnings, Altria’s full-year guidance was set to a 1.5% – 3% earnings per share (EPS) growth rate, from 2022’s $4.84 to the EPS range of $4.91 – $4.98 per share.
In the quarter, Altria repurchased $260 million worth of shares at an average price of $44.26. Based on 13 analyst inputs pulled by Nasdaq, MO stock is a “buy. ” The average MO price target is $43.59 vs. the current $40.31. The high estimate is $50, while the low forecast is $36.1 per share.
3. Wells Fargo & Company
2.88% dividend yield, annual $1.40 per share
Although on the lower dividend yield side than the others, this Global Systemically Important Bank (G-SIB) is one of the safest bets. On January 18th, Bloomberg reported that the Office of the Comptroller of the Currency (OCC), Federal Reserve, and Federal Deposit Insurance Corp. (FDIC) are crafting a plan to require banks to access the Fed’s discount window.
By proactively demanding the Fed’s discount window use, the central bank has greater space to prevent a financial crisis. After all, Fed Governor Neel Kashkari once noted that “there is an infinite amount of cash at the Federal Reserve.”
As covered in January, Wells Fargo is a solid banking stock on its own. It netted $3.48 billion in income, a 3.45% YoY uptick. Based on 21 analyst inputs pulled by Nasdaq, WFC stock is a “buy.”
The average WFC price target is $54.39 vs. the current $48.67. The high estimate (12 months ahead) is $66, while the low forecast is $50.27 per share.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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