Build Stability and Income With 3 Overlooked Dividend Leaders

Core Insights - Dividend investing is a popular strategy among retail investors seeking stability and passive income, with a focus on long-term buy-and-hold approaches for companies like Coca-Cola and Johnson & Johnson [1] - Investors typically look for dividend yields in the 2-3% range and payout ratios below 80% as indicators of sustainable dividend payments [2] Group 1: Enterprise Products Partners (EPD) - EPD offers a high dividend yield of 6.85% with an annual dividend of $2.14 and a dividend payout ratio of 80.15%, supported by a 28-year track record of dividend increases [4][5] - The company has a unique buying opportunity due to a recent share price dip, and analysts expect earnings growth above 5% in the coming year, with a consensus price target suggesting a potential rise of 15% or more [6] - EPD's high dividend yield is likely to become more attractive if the Federal Reserve lowers interest rates [5] Group 2: United Parcel Service (UPS) - UPS has a dividend yield of 6.63% and an annual dividend of $6.56, with a 16-year history of dividend increases, although its payout ratio is high at 95.63% [7][9] - The company is focusing on improving operational efficiency and profitability, which may help offset concerns regarding its elevated payout ratio [8] - Analysts predict UPS will experience earnings growth of 10.3% in the coming quarters, with potential capital growth of nearly 20% [10] Group 3: ONEOK Inc. (OKE) - OKE has a dividend yield of 5.12% and an annual dividend of $4.12, with a payout ratio of 80.47% and a 3-year track record of dividend increases [11][13] - The company is expected to improve its position through new construction that will expand its infrastructure, despite a year-to-date decline of over 21% [12] - Analysts are optimistic about OKE, predicting earnings growth of more than 17% in the coming quarters, with a price target suggesting nearly 29% upside potential [14]