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3 Safe Buy-and-Hold Dividend Stocks With Strong Balance Sheets
MarketBeat· 2025-07-01 11:02
Core Insights - Dividend yield is a key metric for identifying dividend stocks, reflecting the amount of a company's dividend as a percentage of its stock price, which can fluctuate daily [1] - A strong balance sheet, indicated by a low debt-to-equity ratio, is essential for long-term dividend sustainability [2][3] Company Summaries Costco - Costco has a dividend yield of 0.53% with an annual dividend of $5.20 and a 22-year track record of dividend increases [5] - The company has delivered a total return of over 266% over the past five years, with a debt-to-equity ratio of 0.21%, indicating strong financial health [6] - Investors should focus on the 12.7% average dividend growth over the last three years rather than the current yield [7] Archer-Daniels-Midland (ADM) - ADM boasts a dividend yield of 3.86% with an annual dividend of $2.04 and a 53-year history of dividend increases [8] - The company's debt-to-equity ratio stands at 0.34%, suggesting a stable dividend outlook [8] - However, ADM's growth is closely tied to commodity prices, which are cyclical, making it less defensive compared to consumer staples [9] Medtronic - Medtronic has a dividend yield of 3.26% with an annual dividend of $2.84 and a 49-year history of dividend increases [11] - The company is well-positioned in the aging population market and in AI and machine learning, with a debt-to-equity ratio of around 0.53% [12][13] - Despite its potential, Medtronic is not currently highlighted as a top buy by analysts, indicating some caution among investors [14]
This is Why Peoples Financial Services (PFIS) is a Great Dividend Stock
ZACKS· 2025-06-30 16:51
Company Overview - Peoples Financial Services (PFIS) is headquartered in Dunmore and has experienced a price change of -3.09% this year [3] - The company currently pays a dividend of $0.62 per share, resulting in a dividend yield of 4.98%, which is significantly higher than the Banks - Northeast industry's yield of 2.77% and the S&P 500's yield of 1.58% [3] Dividend Performance - The current annualized dividend of $2.47 represents a 20.2% increase from the previous year [4] - Over the past 5 years, PFIS has increased its dividend 4 times year-over-year, averaging an annual increase of 9.97% [4] - The company's current payout ratio is 52%, indicating that it paid out 52% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Earnings growth for PFIS appears strong, with the Zacks Consensus Estimate for 2025 projected at $5.97 per share, reflecting a year-over-year growth rate of 58.36% [5] Investment Appeal - PFIS is considered a compelling investment opportunity due to its attractive dividend yield and strong Zacks Rank of 1 (Strong Buy) [7]
2 High-Yield High-Conviction Blue-Chip Buys For H2 2025
Seeking Alpha· 2025-06-30 11:05
Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at various firms [1] - He is a Professional Engineer and Project Management Professional, holding degrees in Civil Engineering & Mathematics and a Masters in Engineering with a focus on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to share insights and strategies [2]
My 3 Favorite Ultra-High-Yield Dividend Stocks to Buy Now
The Motley Fool· 2025-06-30 09:49
Core Insights - The article discusses three dividend stocks: Ares Capital, W.P. Carey, and Realty Income, highlighting their high yields and strong track records in maintaining and increasing dividends [1][3]. Ares Capital - Ares Capital is the largest publicly traded business development company (BDC) with a $27 billion portfolio yielding an average of 9.8% [4]. - The company offers an 8.7% quarterly dividend yield, with a history of stable or rising payouts since 2009 [5]. - Ares Capital has a low nonaccrual rate of 0.9% in its investment portfolio, supported by a well-experienced underwriting team [6][7]. W.P. Carey - W.P. Carey is a diversified real estate investment trust (REIT) that has faced pressure after spinning off its office portfolio in 2023, resulting in a 19.7% dividend reduction [8][9]. - The REIT has a history of raising dividends, currently offering a 5.7% yield, with expectations for significant growth in the future [10]. - Management projects adjusted funds from operations (FFO) between $4.82 and $4.92, sufficient to cover its annualized dividend commitment of $3.60 [11]. Realty Income - Realty Income is a diversified REIT with a strong history of profit growth and a 5.7% yield, having raised its monthly dividend for the 131st time since its IPO in 1994 [12][13]. - The company operates 15,627 commercial properties across eight countries and recently issued €1.5 billion in notes at an effective rate of 3.7% [14]. - Realty Income's business model includes leasing back properties, providing a steady stream of income and potential for future dividend increases [15].
Investing $25,000 in These 2 Warren Buffett Stocks Will Generate $1,200 in Annual Passive Income
The Motley Fool· 2025-06-29 16:04
Group 1: Market Overview - The market experienced significant volatility this year, falling into bear market territory from its highs in February, but has since recouped losses and is approaching near all-time highs [1] Group 2: Investment Opportunities - Investors may consider adding dividend stocks for reliable passive income, with Berkshire Hathaway's portfolio being a prime example [2] - Investing $25,000 in two selected Warren Buffett stocks could generate approximately $1,200 in annual passive income [2] Group 3: Chevron - Chevron has a dividend yield of 4.77% and is a significant position in Berkshire's $283 billion equities portfolio, making up 6% of it [3][7] - The company operates extensive oil operations, particularly in the Permian Basin, projecting 5% to 6% compound annual growth in oil production and $2 billion in free cash flow growth by 2026 [5] - Chevron expects to increase total free cash flow by $9 billion by 2026, assuming Brent Crude Oil prices remain around $60 per barrel [6] - The company has increased its dividend for 38 consecutive years and has a trailing free cash flow yield of nearly 5.3%, allowing it to cover its dividend [7] - Chevron is also repurchasing $10 billion to $20 billion in stock annually as a method to return capital to shareholders [7] Group 4: Sirius XM - Sirius XM has a dividend yield of 4.80% but has seen its stock decline by about 59% over the last five years due to subscriber growth challenges [8][9] - Berkshire Hathaway has acquired over 35% of Sirius' outstanding shares, betting on management's long-term plan to grow subscribers from 40 million to 50 million and increase free cash flow from $1.2 billion to $1.8 billion [10] - The company plans to enhance in-car technology, launch a new pricing structure, and grow its advertising business, which currently constitutes only 20% of its revenue [10][11] - Sirius XM has paid and increased its dividend every year since 2016, with a trailing-12-month free cash flow yield exceeding 12%, making the dividend sustainable [12] - The stock is currently trading at less than 8 times forward earnings, presenting a potentially attractive investment opportunity while management executes its turnaround plan [12]
TriplePoint Venture Growth: Another Dividend Cut Could Be Around The Corner (Downgrade)
Seeking Alpha· 2025-06-28 11:45
Core Viewpoint - A high dividend yield, such as TriplePoint Venture Growth's (NYSE: TPVG) current yield of 17.9%, often indicates potential concerns regarding the company's financial health [1] Group 1 - TriplePoint Venture Growth has a current dividend yield of 17.9% [1]
3 Monster High-Yield Stocks to Hold for the Next 10 Years
The Motley Fool· 2025-06-28 06:05
Group 1: Realty Income - Realty Income is the largest net lease REIT, owning over 15,600 properties across North America and Europe, which provides it with significant access to capital markets [3][4] - The company has a 5.6% dividend yield, backed by an investment-grade rated balance sheet, and has increased its dividend annually for three decades, making it appealing for conservative income investors [4][5] - Realty Income is recommended for long-term holding, ideally for at least the next 10 years [5] Group 2: Brookfield Asset Management - Brookfield Asset Management is one of Canada's largest asset managers, currently managing around $550 billion in fee-generating assets, with a goal to reach $1.1 trillion by the end of the decade [9] - The company offers a current dividend yield of approximately 3.1%, with a recent dividend increase of 15%, indicating strong growth potential [7][8] - Brookfield operates in various sectors including renewable power, infrastructure, real estate, private equity, and credit, providing multiple avenues for growth [9] Group 3: Target - Target is a major U.S. retailer with a strong dividend history, boasting 58 consecutive annual dividend hikes, qualifying it as a Dividend King [10] - The current yield is around 4.6%, but the company is facing challenges in resonating with consumers compared to competitors like Walmart [11] - Target is undergoing management changes to facilitate a business turnaround, and investors are encouraged to hold for the long term while benefiting from the high yield [11][12] Group 4: Investment Opportunities - Realty Income, Brookfield Asset Management, and Target represent diverse investment opportunities for different types of dividend investors, from reliable income to growth potential and turnaround situations [13]
Why TIM S.A. Sponsored ADR (TIMB) is a Top Dividend Stock for Your Portfolio
ZACKS· 2025-06-27 16:51
Company Overview - TIM S.A. Sponsored ADR is based in Rio de Janeiro and operates in the Computer and Technology sector, with a year-to-date share price change of 66.33% [3] - The company currently pays a dividend of $0.46 per share, resulting in a dividend yield of 4.37%, which is higher than the Wireless Non-US industry's yield of 3.4% and the S&P 500's yield of 1.6% [3] Dividend Performance - TIM S.A. has increased its annualized dividend to $0.86, marking a 54.7% increase from the previous year [4] - Over the past five years, the company has raised its dividend twice on a year-over-year basis, achieving an average annual increase of 9.28% [4] - The current payout ratio for TIM is 18%, indicating that it pays out 18% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for TIM's earnings per share in 2025 is $1.37, reflecting a year-over-year growth rate of 13.22% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - While high-yielding stocks may face challenges during periods of rising interest rates, TIMB presents a compelling investment opportunity due to its strong dividend profile [7] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [7]
Tokio Marine Holdings Inc. (TKOMY) Could Be a Great Choice
ZACKS· 2025-06-27 16:46
Company Overview - Tokio Marine Holdings Inc. is headquartered in Tokyo and has experienced a price change of 15.74% this year [3] - The company currently pays a dividend of $0.56 per share, resulting in a dividend yield of 2.64%, which is significantly higher than the Insurance - Property and Casualty industry's yield of 0.54% and the S&P 500's yield of 1.6% [3] Dividend Performance - The current annualized dividend of Tokio Marine is $1.10, reflecting a 1.3% increase from the previous year [4] - Over the past 5 years, the company has increased its dividend 4 times, achieving an average annual increase of 10.66% [4] - The company's current payout ratio is 31%, indicating that it pays out 31% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Tokio Marine's earnings per share for 2025 is $4.04, with an expected increase of 12.53% from the previous year [5] Investment Appeal - Tokio Marine is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 1 (Strong Buy) [7]
German American Bancorp (GABC) is a Top Dividend Stock Right Now: Should You Buy?
ZACKS· 2025-06-27 16:46
Company Overview - German American Bancorp (GABC) is a financial services holding company based in Jasper, operating in the Finance sector [3] - The company's shares have experienced a price change of -2.56% this year [3] Dividend Information - GABC currently pays a dividend of $0.29 per share, resulting in a dividend yield of 2.96% [3] - The dividend yield of GABC is lower than the Banks - Midwest industry's yield of 3.22% and the S&P 500's yield of 1.6% [3] - The annualized dividend of $1.16 represents a 7.4% increase from the previous year [4] - Over the last 5 years, GABC has increased its dividend 5 times, averaging an annual increase of 9.04% [4] - The current payout ratio for GABC is 39%, indicating that it paid out 39% of its trailing 12-month EPS as dividends [4] Earnings Growth - The Zacks Consensus Estimate for GABC's earnings in 2025 is $3.35 per share, with an expected increase of 18.37% from the previous year [5] Investment Considerations - GABC is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7] - Income investors should note that high-yielding stocks may face challenges during periods of rising interest rates [7]