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Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.
A study from the Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past half-century (1973-2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Most dividend investors aim to secure a reliable passive income stream from quality dividend stocks. Passive income is a consistent unearned income that does not require active traditional work. It is a financial goal that can be achieved through various means, including investments, real estate, or side hustles.
Some of the best stocks for passive investors are the Dividend Kings , the 53 companies that have raised their dividends for at least 50 years. These companies are a testament to their dependability and reliability, and they are two "must-have" items for investors who rely on passive income to boost their overall revenue.
We screened the list, and five stocks, which are among the group's highest yielding, can all be bought in August and could provide investors with years of uninterrupted passive income. All five are rated Buy at top Wall Street firms. Plus, take time to check out this awesome free report .
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 7.76% 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.
Canadian Utilities
This Canada-based worldwide organization of companies has around $22 billion in assets and more than 8,000 employees.
Canadian Utilities Ltd. (OTC: CDUAF), with its hefty 5.76% dividend and position in a highly secure sector, presents an enticing opportunity at current trading levels. The company and its subsidiaries are involved in the electricity, natural gas, renewables, pipelines, liquids, and retail energy businesses in Canada, Australia, and internationally.
It operates through three segments:
- ATCO Energy Systems
- ATCO EnPower
- Corporate & Other
The ATCO Energy Systems segment provides regulated electricity transmission and distribution services in:
- Northern and Central East Alberta
- The Yukon
- The Northwest Territories
- The Lloydminster area of Saskatchewan
This segment also provides integrated natural gas transmission and distribution services in Alberta, the Lloydminster area of Saskatchewan, and Western Australia. It owns and operates approximately 9,100 kilometers of natural gas pipelines, 11 compressor sites, approximately 3,600 receipt and delivery points, and a salt cavern natural gas storage peaking facility near Fort Saskatchewan, Alberta in Canada.
The ATCO EnPower segment provides:
- Hydro
- Solar
- Wind
- Natural gas electricity generation
- Natural gas storage
- Industrial water solutions
- Clean fuels, including hydrogen, carbon capture, and underground storage projects, and related infrastructure development in Alberta, the Yukon, the Northwest Territories, Australia, Ontario, Mexico, and Chile
The Corporate & Other segment retails electricity and natural gas and provides whole-home solutions.
Kenvue
Kenvue is the world's largest pure-play consumer health company by revenue.
Spun off from Johnson & Johnson Inc. ( NYSE: JNJ ) last year, this potential total return home run pays a solid 4.36% dividend. Kenvue Inc. ( NYSE: KVUE ) is a global consumer health company.
The company operates through three segments:
- Self Care
- Skin Health and Beauty
- Essential Health
The self-care segment offers cough, cold, and allergy pain care, digestive health, smoking cessation, and other products under these brands:
The Skin Health and Beauty segment provides face and body care, hair care, sun care, and other products under these brands:
The Essential Health segment offers oral and baby, women's health, and wound care products under these brands:
- Listerine
- Johnson's
- Band-Aid
- Stayfree
National Fuel Gas
National Fuel Gas distributes and transports natural gas to hundreds of thousands of customers in Western New York, and Northwestern Pennsylvania.
This company is right on the verge of breaking out to new 52-week highs and offers a 3.55% dividend. National Fuels Gas Co. ( NYSE: NFG ) is a diversified energy company that operates through four segments:
- Exploration and Production
- Pipeline and Storage
- Gathering
- Utility
The exploration and production segment explores, develops, and produces natural gas and oil.
The pipeline and storage segment provides interstate natural gas transportation services through an integrated gas pipeline system in Pennsylvania and New York, and it owns and operates underground natural gas storage fields.
This segment also transports natural gas for the National Fuel Gas Distribution Corporation and other utilities, industrial companies, and power producers in New York State.
The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region and provides gathering services to Seneca.
The Utility segment sells natural gas or provides natural gas utility services to various customers in:
- Buffalo
- Niagara Falls
- Jamestown
- And Erie and Sharon in Pennsylvania
PepsiCo
As of 2023, Pepsi is the second most valuable soft drink brand worldwide behind Coca-Cola.
This top consumer staples stock posted mixed earnings for the quarter but will still supply the goods for upcoming NFL football season tailgates and parties and pays a solid 3.13% dividend. PepsiCo Inc. ( NYSE: PEP ) is a worldwide food and beverage company.
Its Frito-Lay North America segment offers:
- Lays and Ruffles potato chips
- Doritos, Tostitos, and Santitas tortilla chips
- Cheetos cheese-flavored snacks and branded dips
- Fritos corn chips
The company’s Quaker Foods North America segment provides:
- Quaker Oatmeal
- Grits
- Rice cakes
- Natural granola and oat squares
- Pearl Milling mixes and syrups
- Quaker Chewy granola bars
- Cap’n Crunch cereal
- Life cereal
- Rice-A-Roni side dishes
PepsiCo's North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
- Pepsi
- Gatorade
- Mountain Dew
- Diet Pepsi
- Aquafina
- Diet Mountain Dew
- Tropicana Pure Premium
- Sierra Mist
- Mug brands
Six Dividend Kings That Offer Investors a Passive Income Home Run
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