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Here at 247 Wall St., we consistently emphasize the power of total return to our readers. This strategy, which is the combined increase in a stock's value and dividends, can significantly boost your overall investing success.
For example, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%. That is, 10% for the increase in stock price and 3% for the dividends paid.
We may have struck the motherlode of great total return ideas when we saw an incredible list of stocks in every S&P 500 sector trading down the most from their all-time highs. The team at BTIG posted a list of all 11 S&P 500 sectors, with two stocks from each sector, so we meticulously screened that list, looking for the top dividend-paying companies. It should be noted that the 22 companies featured were down anywhere from 60% to 95% from all-time highs. Some were recent highs, and some were from a long time ago.
The logic, especially if they are solid blue-chip companies, is that the total return potential for these stocks could be staggering. Even if they don't surge tomorrow, the dividends will help investors wait for a catalyst. If and when a catalyst hits, shareholders could have a total return home run.
AES
AES is an American utility and power generation company. It owns and operates power plants, which it uses to generate and sell electricity.
With a solid 4.03% yield and a staggering 77% drop from all-time highs, this utility stock, AES Corp. ( NYSE: AES ), is a safe and secure play. The company and its subsidiaries operate as a diversified power generation and utility company in the United States and internationally.
The company owns and operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; owns and operates utilities to develop or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market.
It uses various fuels and technologies to generate electricity, such as:
- Coal
- Gas
- Hydro
- wind
- Solar
- Biomass
- Renewables, comprising energy storage and landfill gas
The company owns and operates a generation portfolio of approximately 34,596 megawatts and distributes power to 2.6 million customers.
Citigroup
Citigroup is an American multinational investment bank and financial services company in New York City.
This top money center bank is down almost 90% from its all-time highs. Warren Buffett bought a massive $2.5 billion worth of stock in the summer of 2022. The stock pays a dependable 3.63% dividend. Citigroup Inc. ( NYSE: C ) is a leading global diversified financial service company that provides consumers, corporations, and governments with a broad range of financial products and services.
Citigroup offers:
- Consumer banking and credit
- Corporate and investment banking
- Securities brokerage
- Transaction services
- Wealth management services.
Citi operates and does business in more than 160 countries/ jurisdictions in North America, Latin America, Asia, Europe/Middle East and Africa (EMEA).
Trading at a reasonable 9.2 times estimated 2025 earnings, this company looks very reasonable in what remains a volatile stock market and in a sector that has lagged some in 2024 but looks to be gaining ground.
Devon Energy
Devon Energy is engaged in hydrocarbon exploration in the United States.
Down 64% from all-time highs, this energy company utilizes the variable dividend strategy to pay investors a solid 4.50% dividend. Devon Energy Corp. ( NYSE: DVN ) is an independent energy company that primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs) in the United States and Canada. It operates approximately 19,000 wells.
The company also offers midstream energy services, including gathering, transmission, processing, fractionation, and marketing, to natural gas, NGLs, crude oil, and condensate producers through its natural gas pipelines, plants, and treatment facilities.
Production is weighted towards crude oil, while growth opportunities are liquids-focused. These areas anchor the company:
- Delaware Basin
- SCOOP/STACK
- Eagle Ford Shale
- Canadian Oil Sands
- Barnett shale
Devon also owns equity in the publicly traded midstream MLP EnLink.
Ford
Ford is an American automotive corporation founded in 1903 by Henry Ford and 11 associate investors.
This legacy carmaker is down 85% from all-time highs and pays shareholders a rich 5.89% 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 and financing 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
- 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, life science, and medical offices.
Healthpeak Properties Inc. ( NYSE: DOC ) presents a compelling investment opportunity, down 58% from all-time highs. 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 5.51% dividend. Moreover, it 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, the company completed its previously announced all-stock merger with Physicians Realty Trust, a merger of equals. 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.
Kimco Realty
Kimco Realty is a REIT that engages in the ownership and operation of open-air shopping centers.
Down almost 60% from all-time highs, this conservative REIT pays a dependable 4.36% dividend. Kimco Realty Corp. ( NYSE: KIM ) is North America's largest publicly traded owner and operator of open-air, grocery-anchored shopping centers and a growing portfolio of mixed-use assets.
The company's portfolio is primarily concentrated in the first-ring suburbs of the top major metropolitan markets, including those in high-barrier-to-entry coastal markets and rapidly expanding Sun Belt cities, with a tenant mix focused on essential, necessity-based goods and services that drive multiple shopping trips per week.
Publicly traded on the NYSE since 1991 and included in the S&P 500 Index, the company has specialized in shopping center ownership, management, acquisitions, and value-enhancing redevelopment activities for more than 60 years.
As of December 31, 2023, the company owned interests in 523 U.S. shopping centers and mixed-use assets comprising 90 million square feet of gross leasable space.
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