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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%).
We decided to screen our 24/7 Wall St. blue-chip dividend stock database, looking for companies that yield 7% or more but are always forgotten by growth and income investors. Five stocks hit our screen, and once our readers realize they also have forgotten about them, it might be time to take a closer look. In addition, dividend investors have to grab this free report today.
Why do we cover dividend stocks?
Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner's continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Enterprise Products Partners
Enterprise Products Partners is one of the most extensive publicly traded partnerships.
This company is one of the largest publicly traded energy partnerships and pays a 7.20% dividend. Enterprise Products Partners L.P. ( NYSE: EPD ) provides various midstream energy services, including:
- Gathering
- Processing
- Transporting and storing natural gas, natural gas liquids (NGL) fractionation
- Import and export terminalling
- Offshore production platform services
The company has four reportable business segments:
- Natural Gas Pipelines and Services
- NGL Pipelines and Services
- Petrochemical Services
- Crude Oil Pipelines and Services
One reason many analysts may like the stock is its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky in the MLP sector.
HSBC
HSBC is one of the largest banking and financial services institutions in the world.
Based in England, this company is the current version of the old Hong Kong Shanghai Banking Corporation and pays investors a rich 7.12% dividend. HSBC Holdings PLC ( NYSE: HSBC ) provides banking and financial services worldwide.
The company operates through three segments:
- Wealth and Personal Banking
- Commercial Banking
- Global Banking and Markets
The Wealth and Personal Banking segment offers:
- Retail banking and wealth products
- Current and savings accounts
- Mortgages and personal loans
- Credit and debit cards
- Local and international payment services
- Wealth management services comprising insurance and investment products
- Global asset management services, investment management, and private wealth solutions
This segment serves personal banking and high-net-worth individuals.
The Commercial Banking segment provides:
- Credit and lending
- Treasury management
- Payment
- Cash management
- Commercial Insurance
- Investment services
- Commercial cards
- International trade and receivables finance services
- Foreign exchange products
- Capital raising services on debt and equity markets
- Advisory services.
It serves small and medium-sized enterprises, mid-market enterprises, and corporates.
The Global Banking and Markets segment offers financing, advisory, transaction services, credit, rates, foreign exchange, equities, money markets, securities services, and principal investment activities.
Kohl’s
Kohl's currently has 1,165 locations, operating stores in every state except Hawaii.
This top retailer offers an excellent entry point now, yielding 9.78%. Kohl’s Corp. ( NYSE: KSS ) operates department stores in the United States. The company had a rough fiscal first quarter, and while back-to-school should help, more bad numbers could result in a dividend cut. The company is scheduled to report on August 23.
It provides private label, exclusive, and national brand apparel, footwear, accessories, beauty, and home products to children, men, and women customers. The company also sells its products online at Kohls.com and through mobile devices.
The company provides its products primarily under the brand names of:
- Croft & Barrow
- Jumping Beans
- SO
- Sonoma Goods for Life
- Food Network
- LC Lauren Conrad
- Nine West
- Simply Vera
- Vera Wang
Kohl's partners with Amazon.com Inc. ( NASDAQ: AMZN ), where customers can return items through the retailer. Some feel the deal should be expanded with a full partnership or even Amazon buying Kohl's.
Omega Healthcare Investors
Omega Healthcare Investors provides financing and capital to the long-term healthcare industry.
This stock makes much sense with an aging population and pays a significant 7.16% dividend. Omega Healthcare Investors Inc. ( NYSE: OHI ) is a REIT that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities.
The company is focused on owning Skilled Nursing Facilities (SNFs). Most of its assets are SNFs, but Omega Healthcare also owns assisted living facilities, specialty facilities, and medical office property.
Its portfolio of assets is operated by a diverse group of health care companies, predominantly in a triple-net lease structure. The assets span all regions within the United States and the United Kingdom.
The company has increased the dividend paid to shareholders every year since 2003, and the annual dividend growth rate is a solid 4.80%.
Whirlpool
In 2023, Whirlpool reported approximately $19 billion in annual sales.
With massive institutional ownership and backing, the potential for new home sales to increase is a big positive for this company, which pays a dependable 7.24% dividend. Whirlpool Corp. ( NYSE: WHR ) manufactures and markets home appliances and related products.
It operates through four segments:
- North America
- Europe
- Middle East and Africa
- Latin America and Asia
The company's principal products include:
- Refrigerators, freezers, ice makers, and refrigerator water filters
- Laundry appliances and related laundry accessories
- Cooking and other small domestic appliances
- Dishwasher appliances and related accessories, as well as mixers
Whirlpool markets and distributes its products primarily under these brand names:
- Whirlpool
- Maytag
- KitchenAid
- JennAir
- Amana
- Roper
- Admiral
- Affresh
- Gladiator
- Speed Queen
- Hotpoint
- Bauknecht
- Indesit
- Ignis
- Laden
- Privileg
- KIC
- Consul
- Brastemp
- Across
- Ariston
- Diqua
- Royalstar
Six Magnificent Dividend Stocks to Buy Now and Hold Forever
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