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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%). highs
The Magnificent 7-led stock rally over the last year and a half has driven all of the major indices to all-time highs. While the rest of the S&P 500 has muddled, those who rode the artificial intelligence-driven wave have made some serious money. Meanwhile, growth and income investors looking for safe and secure passive income will seek to own the Magnificent 7 dividend stocks for the rest of 2024 and beyond.
We screened our 24/7 Wall St. passive income dividend stock database looking for the companies paying some of the biggest dividends, and offering investors some solid growth potential as well. Seven companies made our Magnificent 7 dividend list, and all have provided dependable streams of passive income for decades. Speaking of dividends, check out this 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 rich 8.46% 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.
Bristol-Myers Squibb
This global biopharmaceutical company is committed to discovering, developing, and delivering innovative medicines.
This top company remains a solid pharmaceutical stock to own long-term, offering an outstanding entry point and a massive 4.87% dividend. Bristol-Myers Squibb Co. ( NYSE: BMY ) discovers, develops, licenses, manufactures, and markets pharmaceutical products worldwide.
The company offers products in:
- Hematology
- Oncology
- Cardiovascular
- Immunology therapeutic classes
Bristol-Myers Squibb products include:
- Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma
- Opdivo for anti-cancer indications
- Eliquis, an oral inhibitor indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE
Orencia for adult patients with active RA and psoriatic arthritis, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis
The company also provides:
- Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia
- Yervoy for the treatment of patients with unresectable or metastatic melanoma
- Abraxane, a protein-bound chemotherapy product
- Implicit for the treatment of multiple myeloma
- Reblozyl for the treatment of anemia in adult patients with beta-thalassemia
BXP
This real estate investment trust develops, acquires, manages, and owns a portfolio of Class A properties.
This quality real estate giant, formerly known as Boston Properties, offers size, safety, and a hefty 5.50% dividend. BXP Inc. ( NYSE: BXP ) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets:
- Boston
- Los Angeles
- New York
- San Francisco
- Seattle
- Washington, D.C.
Including properties owned by joint ventures, BXP's portfolio totals 53.5 million square feet and 187 properties, including 11 properties under construction/redevelopment.
BXP's properties include 165 office properties, 14 retail properties (including two under construction/redevelopment), seven residential properties (including two under construction), and one hotel.
The company is well known for its in-house building management expertise and responsiveness to clients' needs.
BXP has a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers, and build-to-suit projects for diverse creditworthy clients.
Chevron
Chevron is an American multinational energy corporation predominantly specializing in oil and gas.
This integrated giant is a safer way for investors looking to position themselves in the energy sector. It pays a rich 4.44% dividend. Chevron Corp. ( NYSE: CVX ) engages in integrated energy and chemicals operations worldwide through its subsidiaries.
The company operates in two segments:
The Upstream segment is involved in the following:
- Exploration, development, production, and transportation of crude oil and natural gas
- Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
- Transportation of crude oil through pipelines
- Transportation, storage, and marketing of natural gas, as well as operating a gas-to-liquids plant
The Downstream segment engages in:
- Refining crude oil into petroleum product
- Marketing crude oil, refined products, and lubricants
- Manufacturing and marketing renewable fuels
- Transporting crude oil and advanced products by pipeline, marine vessel, motor equipment, and rail car
- Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives
Chevron announced last year that it has entered into a definitive agreement with Hess Corp. ( NYSE: HES ) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction's total enterprise value, including debt, is $60 billion.
Three lawsuits have been filed against Hess, charging inadequate disclosure over the sale, and Chevron has said arbitration over Hess' Guyana assets could delay the closing timeline until October 2025. However, most Wall Street analysts feel the deal will ultimately be completed, and Chevron will emerge even more powerful in the energy sector.
Dominion Energy
Dominion Energy is an integrated energy utility. It offers electricity, natural gas, and related services.
Many of the Wall Street firms we cover are still very positive on utilities, and this company pays a strong 4.75% dividend. Dominion Energy Inc. ( NYSE: D ) operates through four segments:
- Dominion Energy Virginia
- Gas Distribution
- Dominion Energy South Carolina
- Contracted Assets.
The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to residential, commercial, industrial, and governmental customers in Virginia and North Carolina.
The Gas Distribution segment engages in:
- Regulated natural gas gathering
- Transportation
- Distribution and sales activities
- Distributes nonregulated renewable natural gas
- This segment serves residential, commercial, and industrial customers.
The Dominion Energy South Carolina segment:
- Generates
- Transmits
- Distributes electricity and natural gas to residential, commercial, and industrial customers in South Carolina.
The company's portfolio of assets included approximately:
- 30.2 gigawatts of electric generating capacity
- 10,500 miles of electric transmission lines
- 85,600 miles of electric distribution lines
- 94,200 miles of gas distribution lines
Dominion serves approximately 7 million customers.
Kraft Heinz
Kraft Heinz provides high quality, great taste, and nutrition for all eating occasions.
Even in bad times, everybody has to eat, and this company always stands to benefit while paying a tremendous 4.52% dividend. Kraft Heinz Co. ( NYSE: KHC ) was formed via the merger of H.J. Heinz and Kraft Foods.
The company is a leading global food company with estimated annual revenues of $25 billion from well-known brands such as Kraft, Heinz, Oscar Meyer, and Maxwell House.
Kraft Heinz is North America's third-largest food and beverage manufacturer, and it derives 76% of its revenues from that market and 24% from International.
The company’s additional brands include:
- ABC
- Capri Sun
- Classico
- Jell-O
- Kool-Aid
- Lunchables
- Ore-Ida
- Oscar Mayer
- Philadelphia
- Planters
- Plasmon
- Quero
- Weight Watchers
- Smart Ones
- Velveeta
Target
Target is an American retail corporation that operates a chain of discount department stores and hypermarkets.
This company remains a solid and safe retail total return play despite some rough public relations issues last year and pays a solid 3.10% dividend. Target Corp. ( NYSE: TGT ) is a general merchandise retailer in the United States. The company offers apparel for women, men, boys, girls, toddlers, and infants and newborns, as well as jewelry, accessories, shoes, beauty and personal care, baby gear, cleaning and paper products, and pet supplies.
Target also provides:
- Dry grocery dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service
- Electronics, which includes video game hardware and software
- Toys, entertainment, sporting goods, and luggage
- Furniture, lighting, storage, kitchenware, small appliances, home décor, bed and bath
- Home improvement
- School/office supplies
- Greeting cards and party supplies, and other seasonal merchandise
In addition, the company sells merchandise through periodic design and creative partnerships, and shop-in-shop experience; and in-store amenities. Further, it sells its products through its stores; and digital channels, including Target.com.
The company suffered a “Bud Light” moment this year after some disastrous merchandising of LBGTQ product that struck a nerve with many shoppers. While not as bad as the beer giant's conundrum, it still proved to be a huge negative that has seemingly subsided some.
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