Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The importance of patience in dividend stocks is highlighted, as a 10% drip on a higher-yielding stock is more significant for income investors compared to the same drop on the S&P 500 [2] - The article emphasizes a defensive investment approach with a medium- to long-term horizon [2]

Analyst's Disclosure:I/we have a beneficial long position in the shares of WHR, OLP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. At the recent July Federal Open Market Committee, or "FOMC," meeting, Jerome Powell announced that the Federal Reserve decided to hold inte ...

Core Viewpoint - With ongoing uncertainty in interest rates and market volatility expected to persist into the second half of 2025, dividend stocks are gaining popularity among investors seeking passive income Group 1: Sirius XM Holdings - Despite a nearly 28% decline in stock price this year, Sirius XM Holdings offers a compelling dividend yield of 4.7% [2] - The company is adjusting its pricing and investing in exclusive content to compete with larger rivals like Spotify, with expected annual dividend payments totaling $364 million [2][3] Group 2: Coca-Cola - Coca-Cola continues to outperform its competitors in the consumer staples sector, reporting $12.6 billion in revenue for Q2 2025 and a 63% increase in operating income [4] - The company has a remarkable track record of 63 consecutive years of dividend increases, currently offering a dividend yield of 2.96% [4] Group 3: Realty Income - Realty Income stands out among REITs due to its reliable income stream, having delivered monthly dividends for over 30 years and increasing its annual payout at a 4.3% compound annual growth rate [5] - The company generated $4.19 in adjusted funds from operations (AFFO) per share in 2024, distributing $3.13 per share in dividends, indicating potential for growth in its current model [6]

Core Viewpoint - The Schwab U.S. Dividend Equity ETF focuses on high-quality, high-yielding dividend stocks, which have historically outperformed non-dividend payers by more than two to one over the past 50 years, delivering a 10.2% average annualized return [1][2]. Group 1: ETF Strategy and Performance - The ETF aims to closely track the Dow Jones U.S. Dividend 100 Index, which measures the performance of 100 top high-quality, high-yielding U.S. dividend stocks [4]. - The index's 100 holdings had an average dividend yield of 3.8% and increased their payouts at an average annual rate of 8.4% over the past five years, positioning the ETF for attractive total returns [4]. - The Schwab U.S. Dividend Equity ETF has delivered double-digit annualized total returns over the past five- and ten-year periods, with an 11.5% annualized total return since its inception in late 2011 [12]. Group 2: Key Holdings - Chevron is the top holding in the ETF, accounting for 4.4% of its net assets, with a 4.5% dividend yield and a history of increasing dividends for 38 consecutive years [7][8]. - PepsiCo is another significant holding, representing 4.2% of the fund's assets, with a 4% dividend yield and a 53-year streak of dividend increases [9]. Group 3: Dividend Characteristics - The ETF currently offers a dividend yield of around 3.8%, which is more than three times higher than the S&P 500, providing a strong and growing base return as its holdings increase their dividend payments [13]. - The ETF's focus on companies with strong financial profiles supports the sustainability of high-yielding and steadily rising dividends [15].

This is the only U.S.-listed public company that's been paying a consecutive dividend for more than 200 years -- and you've probably never heard of it. With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, there are a lot of ways to grow your wealth on Wall Street. Though there isn't a one-size-fits-all blueprint, buying and holding high-quality dividend stocks has often been a strategy that leads to significant wealth creation. Companies that pay a regular dividend to ...

Core Insights - The article discusses the contrasting dividend strategies of Alphabet and AT&T, highlighting the trade-off between high yield and growth potential in dividend-paying stocks [2][15]. Group 1: Alphabet - Alphabet initiated a dividend program last year and raised its payout by 5% to $0.21 per share, resulting in a yield of approximately 0.4% [4][5]. - Over the past five years, Alphabet's earnings per share have increased by 29.4% annually, with free cash flow reaching around $66.7 billion, of which less than 15% was used for dividends [5][11]. - Alphabet's strong market position in advertising and cloud computing, along with its dominance in the search engine and browser markets, positions it well for long-term growth [6][7]. Group 2: AT&T - AT&T's earnings per share have only increased by 15.8% over the past five years, partly due to the spinoff of media assets and loss of wireline connections [8][9]. - The company offers a high dividend yield of around 4%, which is about ten times that of Alphabet, but has not increased its dividend since a reduction in 2022 [10][11]. - AT&T's free cash flow was $19.6 billion over the past 12 months, more than double its dividend obligation, and is expected to remain sufficient despite a projected decline in wireline revenue [11][12]. Group 3: Investment Considerations - For long-term investors, Alphabet may provide better growth potential in dividend income, while AT&T may be more suitable for those closer to retirement seeking immediate income [15][16]. - If projected earnings growth rates continue, Alphabet's yield on cost could surpass AT&T's by 2035, making it a more attractive option for long-term investment [16].

Core Insights - Dividend-paying stocks tend to outperform non-dividend-paying stocks, with the average dividend-paying stock in the S&P 500 producing a 9.2% annualized return over the past 50 years compared to 4.3% for non-dividend stocks [2] Realty Income - Realty Income has consistently raised its dividend, marking its 131st increase since going public in 1994, despite a 23% decline in share price from its 2022 peak, currently offering a yield of 5.6% [5][6] - The REIT operates on a net lease model, with 98.5% of its portfolio leased out and an average remaining lease term of 9.1 years, providing predictable cash flows [7] - Realty Income has a strong credit rating (A3 from Moody's and A- from S&P Global) and recently issued €1.3 billion in long-term notes at an average yield of 3.7% [8] - The U.S. net lease REIT market is about 4% of the addressable market, with significant expansion opportunities in Europe, where it is less than 0.1% [9] Alexandria Real Estate Equities - Alexandria Real Estate Equities has seen a 63% decline in share price since its peak in 2021, but its dividend has been consistently increasing since 2009, currently offering a yield of 6.4% [10] - Approximately 53% of its annual rental revenue comes from tenants with investment-grade credit ratings, but nearly half comes from less established biotech companies, leading to concerns after management revised its forward outlook downward [12] - Despite recent guidance revisions lowering expected funds from operations (FFO) to between $8.11 and $8.31 per share, this is still above the current annual dividend obligation of $5.28 per share [13] - Alexandria has secured a significant 16-year lease for 466,598 rentable square feet, and reported a 13.2% rental rate increase in the first half of 2025 [14] - The current challenging environment for start-up biotech companies may create short-term discomfort for shareholders, but long-term growth potential remains due to ongoing drug development needs [15]

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The investment approach focuses on high-quality dividend stocks and assets that provide long-term growth potential, which can significantly contribute to income generation [1]. - The strategy aims to create a balanced portfolio that captures total returns on par with the S&P index, demonstrating the effectiveness of blending growth and income investments [1].

Core Viewpoint - President Trump's trade policies, particularly aggressive tariffs on imports, are impacting Wall Street and could increase costs for companies, affecting their margins and stock performance. However, certain healthcare companies like Eli Lilly and Novartis present investment opportunities despite these challenges [1][2]. Eli Lilly - Eli Lilly has committed to investing $50 billion in U.S.-based manufacturing since 2020, with half of this announced in the first quarter [4]. - The company aims to manufacture 100% of medicines for U.S. patients domestically, which will help mitigate the impact of tariffs [5]. - Eli Lilly has shown significant innovation in diabetes and obesity treatments, with new products like Mounjaro and Zepbound generating billions in revenue [5]. - In Q1, Eli Lilly's revenue rose 45% year over year to $12.7 billion, and net income increased by 23% to $2.8 billion [6]. - The company has a strong pipeline, including a promising oral GLP-1 candidate, orforglipron, which could attract patients seeking convenience [7]. - Eli Lilly has increased its dividend payout by 102.7% over the past five years, making it a solid choice for growth and income investors [8]. Novartis - Novartis plans to invest $23 billion over the next five years to enhance its U.S. manufacturing capabilities [9]. - Despite potential short-term impacts from tariffs, Novartis is expected to manage these challenges effectively [10]. - In Q1, Novartis reported a 12% increase in net sales to $13.2 billion and a 22% rise in net income to $4.5 billion [10]. - The company is facing a loss of U.S. patent exclusivity for its heart failure drug Entresto, which generated $2.3 billion in sales in Q1, a 20% increase year over year [11]. - Novartis has prepared for this loss with new medicines like Fabhalta and cancer drugs Scemblix and Pluvicto, which have shown promising sales [11][12]. - The company has increased its dividend for 28 consecutive years, currently offering a forward yield of 3.3%, which is significantly higher than the S&P 500 average [13].

Core Insights - A family member has recently retired and allocated a significant portion of retirement capital to a popular dividend ETF, specifically the Schwab U.S. Dividend Equity ETF (SCHD) [1] - The investment strategy focuses on high-quality dividend stocks and a mix of Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1] Investment Strategy - The approach combines classic dividend growth stocks with other asset classes to create a hybrid system that balances growth and income [1] - This strategy aims to boost investment income while maintaining a total return that aligns with the performance of the S&P [1]