Core Insights - The article highlights the performance of dividend-paying stocks during market downturns, emphasizing their stability and ability to outperform the S&P 500 in 2025 [1][2] Group 1: AT&T - AT&T is a major U.S. telecom provider with 72.7 million post-paid phone subscribers and 9.3 million fiber optic broadband customers as of the end of 2024 [3] - The stock has a low beta of 0.42, indicating less volatility during market downturns, and offers a dividend yield of 4.1%, which is sustainable as it represents only half of the company's earnings-per-share estimate for 2025 [4] Group 2: Philip Morris International - Philip Morris is the largest tobacco company globally, selling products in 180 countries, and has a beta of 0.44, making it a reliable investment during economic downturns [5] - The company has consistently paid and raised its dividend since 2008, currently yielding 3.2%, and smoke-free products now account for 40% of total sales, indicating a shift towards long-term growth [6] Group 3: The Coca-Cola Company - Coca-Cola is a well-established blue-chip dividend stock with a diverse portfolio of beverages and a low beta of 0.45, making it a stable investment choice [7][8] - The company has a dividend yield of 2.8% and a payout ratio of 69% of 2025 earnings estimates, with a strong track record of increasing dividends over six decades [9]

Core Viewpoint - American Express is highlighted as a strong dividend stock, offering sustainable income through dividend growth, especially during market volatility [1][2]. Group 1: Company Overview - American Express was founded in 1850 and has evolved significantly since launching its credit card line in 1958, becoming one of the largest credit card issuers in the U.S. and globally [3]. - As of the end of Q1, American Express had approximately 147.5 million credit cards in circulation, adding 3.4 million net new cards in the quarter, indicating potential future earnings growth [4]. Group 2: Customer Demographics - Millennials and Gen Z are increasingly drawn to American Express credit cards, accounting for 35% of spending last quarter, with a year-over-year growth of 14%, representing the future customer base for the company [5]. Group 3: Financial Metrics - American Express maintains strong credit metrics, with a net write-off rate of 2.1%, significantly lower than the 5% rate of competitor Discover Financial, suggesting resilience during economic downturns [6]. - Over half of American Express' revenue comes from swipe fees, with an additional 14% from annual fees, contributing to more stable earnings compared to traditional banks [7]. Group 4: Dividend Growth - The company has experienced a 152% growth in earnings per share (EPS) over the last decade, alongside a cumulative 120% increase in dividend per share, with a recent 17% hike in the quarterly dividend [9]. - The current dividend yield stands at 1.09%, with expectations for growth based on the cost basis for new investors [9]. Group 5: Share Buyback Program - American Express has reduced its shares outstanding by 30% over the last 10 years through a share buyback program, enhancing the ownership stake of existing shareholders [10]. - This reduction in shares outstanding facilitates easier growth in dividend payouts, making American Express an attractive option for long-term investors [11].

Core Viewpoint - The current economic environment presents a favorable opportunity for investors to consider solid dividend stocks, which tend to be more resilient than non-dividend-paying companies amid market volatility and potential recession [1]. Group 1: Dividend Stocks Overview - Four recommended dividend-paying stocks during the current market sell-off are AbbVie, Amgen, Bristol Myers Squibb, and Zoetis [2]. Group 2: AbbVie - AbbVie is recognized for its strong position in immunology, despite facing challenges such as a patent cliff and clinical setbacks [3]. - The company has increased its 2027 revenue guidance for key products Skyrizi and Rinvoq by $4 billion to over $31 billion, indicating strong growth potential [4]. - AbbVie has a robust pipeline and a history of increasing dividends for 53 consecutive years, with a forward yield of 3.9%, significantly above the S&P 500 average of 1.3% [5]. Group 3: Amgen - Amgen's shares faced a decline due to underperformance of its weight loss candidate, MariTide, but the company has a strong portfolio with over 10 blockbuster drugs [6]. - Key growth drivers include asthma medicine Tezspire and FDA-approved Tepezza for thyroid eye disease, supporting a strong revenue outlook [7]. - Since initiating dividends in 2011, Amgen has increased payouts by 750%, with a forward yield exceeding 3.5% [8]. Group 4: Bristol Myers Squibb - Bristol Myers is facing significant patent cliffs, particularly for its best-sellers Opdivo and Eliquis, but has managed to secure new approvals to mitigate revenue loss [9]. - Newer medicines like Reblozyl and Opdualag are expected to drive future sales growth [10]. - The company has increased its dividend by nearly 68% over the past decade, offering a yield of 5.1% [11]. Group 5: Zoetis - Zoetis, a leader in animal health, started the year with disappointing guidance but has a strong portfolio with 15 products generating over $100 million in annual sales [12]. - The company is expected to overcome current challenges with its key product Apoquel and has new approvals in the pipeline to drive growth [13]. - Zoetis has increased its dividends by about 500% over the past decade, although its yield is 1.4% [14].

Group 1: Market Overview - Many investors are withdrawing from the stock market, but long-term investors recognize the importance of holding through volatility [1] - It remains a favorable time to invest in companies with strong underlying businesses and attractive long-term prospects, particularly dividend payers [1] Group 2: Medtronic - Medtronic is a leader in medical devices and may be affected by tariffs imposed by the current administration, particularly due to its significant revenue from the U.S. and manufacturing in Mexico and China [3][4] - Despite near-term uncertainties, Medtronic is considered a solid long-term investment due to its historical resilience in challenging economic conditions [4] - The company operates in a defensive industry, which helps it maintain steady financial results even during economic downturns [5] - Medtronic has consistent revenue and earnings growth, with significant opportunities in diabetes care and robotic-assisted surgery [7] - The company has a strong dividend track record, having increased payouts for 47 consecutive years, with a forward yield of 3.4% [8] Group 3: Merck - Merck has faced challenges in the past year due to potential competition for its cancer drug Keytruda and an upcoming patent cliff [9] - Despite these challenges, Merck's long-term prospects remain strong, as pharmaceutical companies often recover by developing new and improved medicines [10] - Merck is working on a subcutaneous formulation of Keytruda and has a deep pipeline with several dozen programs in development [10] - The company is expanding into the weight loss market and bispecific antibodies, which could enhance its treatment offerings [11] - Merck has a solid dividend program, having increased payouts by 80% over the past 10 years, with a current forward yield of 3.4% [12]

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yie ...

Market Overview - The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all experienced double-digit percentage declines, with the Nasdaq entering a bear market with a loss exceeding 20% from its all-time high [2][3] - The recent declines have been characterized by their rapid velocity, with significant single-session point and percentage declines recorded [3] Tariff Policy Impact - President Trump's tariff policy has been a pivotal factor in the recent market downturn, with a 10% global tariff and higher reciprocal tariffs on countries with negative trade balances with the U.S. announced [4][5] - The potential for tariffs to increase domestic goods prices and reignite inflation is a concern, as input tariffs could make U.S. products less competitive [6] - Tariffs may also harm trade relations and create uncertainty in the market, as the president frequently changes which products or countries are affected [7] Investment Opportunities - The current market volatility presents an opportunity for long-term investors to acquire stocks at discounted prices [8] - Johnson & Johnson offers a 3.31% yield and has increased its annual payout for 63 consecutive years, indicating a strong dividend history [9] - Johnson & Johnson holds a AAA credit rating, reflecting confidence in its ability to service and repay debts [10][11] - The company's operating model is expected to remain stable despite tariff concerns, as demand for healthcare products is consistent [12] - Johnson & Johnson's focus on novel-drug development and its historically inexpensive stock valuation (14 times forward-year earnings) make it an attractive investment [14][15] Sirius XM Holdings - Sirius XM Holdings provides a 5.36% yield and operates as a legal monopoly in satellite radio, giving it pricing power over competitors [16][17] - The company generates 76% of its net sales from self-pay subscriptions, making it less vulnerable to economic downturns compared to traditional radio operators reliant on advertising [19] - Sirius XM's stock is valued at 6.6 times forward-year earnings, representing a 55% discount to its average forward P/E multiple from 2019 to 2024 [20]

Core Viewpoint - The article emphasizes the importance of a hybrid investment strategy that combines high-quality dividend stocks with other asset classes like Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Group 1: Investment Strategy - A solid base of classic dividend growth stocks can be complemented with other investment vehicles to create a diversified portfolio [1]. - The hybrid system aims to balance growth and income, allowing investors to capture total returns on par with the S&P 500 [1]. Group 2: Investment Focus - The focus is on uncovering high-quality dividend stocks that offer potential for long-term growth and significant income generation [1]. - The strategy includes a mix of different asset types to boost overall investment performance [1].

Core Viewpoint - Dividend stocks can provide a combination of attractive and growing dividend income along with stock price appreciation, helping investors grow their wealth steadily [1] Group 1: Dividend Stocks Overview - Johnson & Johnson, Invitation Homes, and NextEra Energy are highlighted as top dividend stocks, each offering yields over 3%, significantly higher than the S&P 500's yield of 0.13% [2] - These companies have a strong history of increasing their dividend payments, which is expected to continue [2][13] Group 2: Johnson & Johnson - Johnson & Johnson currently has a dividend yield of 3.3%, generating $3.30 of dividend income annually for every $100 invested [4] - The company boasts a AAA-bond rating and a strong balance sheet with $13.5 billion in net debt against $38.8 billion in cash, supporting its $11.8 billion dividend outlay from $20 billion in free cash flow last year [5] - The company has increased its dividend by 4.8%, marking 63 consecutive years of growth, placing it among the elite Dividend Kings [6] - Johnson & Johnson invests heavily in R&D, with $17 billion spent last year, and has made over $30 billion in acquisitions, which are expected to support future dividend growth [7] Group 3: Invitation Homes - Invitation Homes has a dividend yield of 3.4% and owns or manages over 110,000 rental homes in high-demand markets, ensuring steady income [8] - The company has acquisition channels for purchasing newly built homes and currently has over 2,000 homes under construction, contributing to its growth [9] - Invitation Homes raised its dividend by 3.6% last December and has consistently increased its dividend since going public in 2017 [9] Group 4: NextEra Energy - NextEra Energy offers a dividend yield of 3.4% and generates stable cash flow from electricity demand and regulated rate structures [10] - The company is a leading investor in renewable energy infrastructure, expecting to grow its adjusted earnings per share at the high end of its 6% to 8% annual target range through at least 2027 [11] - NextEra anticipates a 10% annual increase in its dividend payout, having achieved a 10% compound annual growth rate over the past 20 years [12]

iREIT+HOYA Capital is the premier income-focused investing service on Seeking Alpha. Our focus is on income-producing asset classes that offer the opportunity for sustainable portfolio income , diversification , and inflation hedging . Get started with a Free Two-Week Trial and take a look at our top ideas across our exclusive income-focused portfolios.It literally pays to have a stable of steady dividend stocks that are more or less immune to what’s going on with the rest of the world. While they’re not as ...

Nelson retired from the corporate world at 39 and now manages his own portfolio full-time. His focus is on under covered and unappreciated Canadian dividend stocks, excellent companies at solid values which happen to pay dividends.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation f ...