Investing in dividend stocks can result in a golden nest egg that delivers steady cash flow. Receiving dividends from stocks allows you to hold onto your shares while receiving the cash you need to address living expenses.
It takes a long time to grow a dividend portfolio and be in a position where it can cover most or all of your expenses. Even if the dividend portfolio falls short, social security may be enough to cover your remaining costs.
However, you first have to pick the right dividend stocks and make frequent investments into those positions. It gets easier if you reinvest every dividend you receive leading up to retirement. Every reinvestment ensures that your next dividend payout is higher than your most recent one.
These top dividend stocks are leaders in their respective industries that regularly exhibit rising revenue and net income. You’ll also get steady cash flow and dividend growth while holding onto these investments.
Walmart (WMT)
Walmart (NYSE:WMT) has delivered solid returns for long-term investors. Many people visit the retailer’s locations for affordable groceries and goods. Investors get a 1.19% yield at current levels. Shares have gained 14% year-to-date and are up by 30% over the past five years.
The global retailer reported 6% year-over-year revenue growth in Q1 FY25. Global e-commerce and advertising both exhibited strong gains, up by 21% and 24% year-over-year, respectively. It also reported $5.1 billion in net income and closed out with a 3.2% net profit margin.
Wall Street remains bullish on the retailer. Walmart stock is currently rated as a “Strong Buy” with a projected 9% upside. The highest price target of $81 per share suggests that the stock can gain an additional 21% from current levels.
While the company hasn’t been known for meaningful dividend hikes, Walmart changed the script earlier this year. The company raised its dividend by 9% year-over-year. Investors now receive a quarterly dividend of $0.21 per share.
Visa (V)
Visa (NYSE:V) makes a small percentage of every credit and debit card transaction for its products and it’s translated into meaningful financial growth. Revenue and net income both increased by 10% year-over-year in Q2 FY24, as cross-border volume remained elevated. Profit margins came in at 53.1% for the quarter. Visa regularly reports net profit margins above 50%.
The stock currently trades at a 30 P/E ratio and offers a 0.77% y yield. Shares are up by 4.75% year-to-date and have gained 56% over the past five years. Wall Street is optimistic about the stock’s long-term prospects. The average price target suggests a 17% upside from current levels. Visa is currently rated as a “Strong Buy” with zero sell ratings.
Visa regularly reinvests into its shareholders. The company allocated $3.8 billion toward stock buybacks and dividends. Visa has also maintained an excellent dividend growth rate for several years. The compounded annual dividend growth rate has been 18.05% over the past decade.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) continues to expand its profit margins while delivering enticing revenue growth. The company reported 27% year-over-year revenue growth and 117% year-over-year net income growth in Q1 2024.
Growth should continue as the firm attracts more users. The number of daily active users across the company’s social networks reached 3.24 billion. It’s a 7% year-over-year increase. Meta Platforms does a good job at keeping people on their platforms and generating ad revenue, so the influx of users should translate into outsized revenue growth rates.
Meta Platforms is still growing, but that hasn’t stopped the company from initiating aggressive stock repurchasing programs. The company allocated $14.64 billion toward stock buybacks and paid out $1.27 billion worth of dividends to its investors. Meta Platforms will likely maintain a double-digit dividend growth rate for several years due to its strong balance sheet and commitment to efficiency. The stock currently yields 0.39% and trades at a 29.15 P/E ratio.
On the date of publication, Marc Guberti did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.