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24/7 Wall St. Insights:
- Quality S&P 500 dividend stocks will be in demand as rates are lowered.
- The stock market is overbought at current levels, and September is usually dangerous.
- Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “7 Things I Demand in a Dividend Stock,” plus get our two best dividend stocks to own today: Access 2 legendary, high-yield dividend stocks Wall Street loves .
Investors love dividend stocks because they provide dependable income and give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation.
At 247 Wall St., we always remind our readers about the impact total return has on portfolios because it is one of the best ways to improve the chances of overall investing success. Again, total return is the combined increase in a stock's value plus dividends.
The Magnificent 7, especially Nvidia Corp. ( NASDAQ: NVDA ), may have driven the S&P 500 and the Nasdaq to recent all-time highs, but most are wildly overbought. By comparison, most of the venerable index still trades at reasonable levels.
The S&P 500 is up 18% in 2024, so we decided to screen the dividend stocks in the S&P 500, looking for companies that could provide investors with solid passive income streams and pay the biggest dividends in the venerable index. We found six companies that growth and income investors should grab now. These stocks are not just bargains; they are steals, and when rates are lowered this year, and possibly for the next two years, they could be snapped up in a heartbeat. All are rated Buy at top Wall Street firms.
Altria
Altria is one of the world's largest producers and marketers of cigarettes and other tobacco-related products.
This tobacco company offers value investors a great entry point and a rich 7.70% dividend. Altria Group Inc. ( NYSE: MO ) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.
The company provides cigarettes primarily under the Marlboro brand, as well as:
- Cigars and pipe tobacco, principally under the Black & Mild brand
- Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- on! Oral nicotine pouches
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev S.A. ( NYSE: BUD ), the world's largest brewer. The company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of their holdings but still leaves a hefty 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan partially funded by the sale.
Verizon
Verizon Communications, commonly known as Verizon, is an American multinational telecommunications conglomerate.
This top telecommunications company offers tremendous value, trading at 8.75 times estimated 2025 earnings and paying investors a strong 6.42% dividend. Verizon Communications Inc. ( NYSE: VZ ), through its subsidiaries, provides communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide.
It operates in two segments:
- Verizon Consumer Group
- Verizon Business Group
The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements.
It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:
- Smartphones
- Tablets
- Smartwatches and other wireless-enabled connected devices
The segment also offers wireline services in Mid-Atlantic and northeastern United States, including the District of Columbia, through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network.
The Business segment provides wireless and wireline communications services and products, including:
- FWA broadband
- Data
- Video and conferencing
- Corporate networking
- Security and managed network
- Local and long-distance voice
- Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally
Crown Castle
Crown Castle is the nation's largest provider of shared communications infrastructure.
This top cell tower company offers incredible growth and income possibilities with a fat 6.53% dividend. Crown Castle International Corp. ( NYSE: CCI ) is one of the largest U.S. wireless tower companies, with over 40,000 towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every primary U.S. market.
The company's core business is leasing space on its wireless towers, primarily to wireless carriers, government agencies, and broadband data providers. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology, and wireless service - bringing information, ideas, and innovations to the people and businesses that need them.
Crown Castle is one of the best stocks in the sector for more conservative investors. Its high yield distribution and low volatility make it a good holding for accounts seeking growth, income, and less risk.
Ford
Ford is an American automotive corporation founded in 1903 by Henry Ford and 11 associate investors.
This legacy carmaker pays shareholders a rich 5.40 dividend. Ford Motor Co. ( NYSE: F ) develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide.
It operates through five segments:
- Ford Blue
- Ford Model e
- Ford Pro
- Ford Next
- Ford Credit
The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors, dealers, and dealerships to commercial fleet customers, daily rental car companies, and governments.
It also engages in vehicle-related financing and leasing activities to and through automotive dealers.
In addition, the company provides retail installment sale contracts for:
- New and used vehicles
- Direct financing leases for new cars to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers.
Further, it offers wholesale loans to dealers to finance the purchase of vehicle inventory, loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs.
Healthpeak Properties
This company invests in real estate related to the health care industry, including senior housing and life science and medical offices.
Healthpeak Properties Inc. ( NYSE: DOC ) presents a compelling investment opportunity. With an aging population and the increasing demand for new facilities, this fully integrated real estate investment trust (REIT) and S&P 500 company offers a substantial 5.39% dividend.
The company holds the potential for significant growth. Healthpeak's strategic focus on owning, operating, and developing high-quality real estate for healthcare discovery and delivery ensures a stable and lucrative investment.
In March, it was reported that the previously announced all-stock merger with Physicians Realty Trust, a merger of equals deal, was completed. The combined company will operate under “Healthpeak Properties, Inc.” Healthpeak now owns a combined portfolio of top-quality healthcare real estate assets in the high barrier-to-entry markets of the United States.
Kinder Morgan
Kinder Morgan is one of North America's largest energy infrastructure companies.
This is one of the top energy stocks and remains a favorite across Wall Street. It pays a dependable 5.38% dividend. Kinder Morgan Inc. ( NYSE: KMI ) is an energy infrastructure company in North America.
The company operates through four segments:
- Natural Gas
- Products
- Terminals
- CO2
The Natural Gas Pipelines segment:
- Owns and operates the interstate and intrastate natural gas pipeline and underground storage systems
- Natural gas gathering systems and natural gas processing and treating facilities
- Natural gas liquids fractionation facilities and transportation systems
- Liquefied natural gas liquefaction and storage facilities
The Products Pipelines segment owns and operates refined petroleum products, crude oil and condensate pipelines, associated product terminals, and petroleum OKEpipeline transmit facilities.
The Terminals segment owns and operates liquids and bulk terminals that store and handle various commodities, including:
- Gasoline
- Diesel fuel
- Chemicals
- Ethanol
- Metals
- Petroleum coke
- Owns tankers
Lastly, the CO2 segment produces, transports, and markets CO2 to recover and produce crude oil from mature oil fields. It owns interests in and operates oil fields, gasoline processing plants, and a natural oil pipeline system in West Texas.
It holds and runs approximately 83,000 miles of pipelines and 144 terminals.
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