If you want to invest smartly, look no further than dividend stocks.
These powerful investments offer the best of both worlds, combining steady income with the potential for superb capital gains. Hence, they are ideal for those looking for financial stability, delivering regular dividends while promising long-term wealth creation.
Over the past few years, the focus has been mostly on high-growth tech stocks. AI has effectively spearheaded the equity market, with a narrow range of stocks dominating the proceedings. Nonetheless, building a well-rounded portfolio is paramount, which makes it imperative to consider reliable dividend stocks.
With that in mind, these dividend stocks effectively capture the essence of the earlier discussion, offering superb upside with growing dividend payouts. They are excellent bets for those looking to diversify their investment strategies while ensuring a steady flow of income.
Meta Platforms (META)
Meta Platforms (NASDAQ:META)made a surprising entry into the dividend stock arena this year.
Following the monstrous success of its ‘Year of Efficiency’ in 2023 and AI advancements, Meta is eager to distribute some of its profits to its shareholders. The inaugural 50-cent quarterly dividend signals confidence in its ability to generate sustained cash flows and appeal to a wider investor base.
Financially, Meta continues to impress. It surpassed estimates across both lines in each of the past four quarters. Moreover, Meta has consistently impressed over the past 12 quarters, with about 67% of its earnings reports either meeting or exceeding expectations. The integration of AI across its enormous’ Family of Apps’ ecosystem has been the primary driver behind these lofty numbers.
Furthermore, despite the superb run-up in value over the past year, Meta still has gas left in the tank. Analysts forecast a double-digit jump in META stock from its current levels, and the upcoming second-quarter (Q2) earnings beat could be just the boost needed.
Clorox (CLX)
Clorox (NYSE:CLX) stands out as an attractive risk backed by an evergreen business of essential, everyday products with stable demand. Known for its bleach and cleaning supplies, Clorox operates a recession-resistant business with stable growth across both lines. Moreover, its investors value the firm for its consistent dividend payments. It has paid a growing dividend for the past 46 years, yielding an excellent 3.55%, and could soon become a ‘Dividend King.’
Over the past year, Clorox has navigated market headwinds with considerable aplomb. Its strategic pricing and cost efficiencies have effectively enabled the firm to maintain its margins near its lofty averages. Clorox’s superb fallout management from its 2023 cyberattack underscores its resiliency. It’s now back posting, encouraging organic sales growth while growing its margins in tandem.
CLX stock has been a laggard over the past 12 months, shedding north of 13%. Nevertheless, its attractive dividend profile is enough to sway any investor who’s on the fence.
Vici Properties (VICI)
Vici Properties (NYSE:VICI) is a high-yielding real estate investment trust (REIT) focused on gaming, hospitality and entertainment. Though it’s one of the riskier plays in its niche, it boasts a massive portfolio of 29 gaming facilities and 19,200 hotel rooms, underscoring its formidable position. Nevertheless, investing in VICI stock comes with greater exposure to economic swings, making it a compelling pick for adventurous investors. It currently yields more than 5.4% and has grown its payouts for the past five years.
Recent financials have been encouraging, with it comfortably beating top-line estimates while posting healthy growth in its adjusted funds from operations (AFFO). Revenues climbed 8.4% year-over-year (YOY) in Q1 to $951.5 million, while its AFFO shot up by 10.3% to $583.2 million. Moreover, operational expenses growth during Q1 was flat at $150.4 million.
Also, the REIT recently announced a massive $700 million investment in The Venetian Resort Las Vegas. The investment will significantly improve guest experiences following a major revamping of afternoon, entertainment and convention spaces.
On the date of publication, Muslim Farooque 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.