Up to date on August twentieth, 2024 by Bob Ciura
The very best final result of dividend progress investing is to seek out shares with excessive dividend yields, secure dividends throughout recessions, and future progress potential.
And but, this mix of traits is troublesome to seek out within the inventory market.
The trade-off between progress and dividends makes it troublesome to seek out shares with each a excessive dividend yield and long-term progress prospects. The extra an organization pays out in dividends, the much less it has to reinvest in progress.
Discovering dividend shares that persistently pay rising dividends, and now have secure dividends throughout recessions, is troublesome.
For instance, there are at the moment solely 68 Dividend Aristocrats.
To be a Dividend Aristocrat, an organization should:
Be within the S&P 500
Have 25+ consecutive years of dividend will increase
Meet sure minimal measurement & liquidity necessities
You may obtain an Excel spreadsheet of all 68 Dividend Aristocrats (with vital monetary metrics reminiscent of P/E ratios and dividend yields) by clicking the hyperlink beneath:
The record of Dividend Kings (50+ years of dividend will increase) can also be comparatively brief, offering additional proof of the rarity of sturdy aggressive benefits.
This text takes a take a look at high quality dividend shares with the next traits:
Dividend yields above 4%
A minimum of 10+ consecutive years of dividend will increase
Dividend Danger Scores of ‘C’ or higher
Market capitalizations above $10 billion
Companies with lengthy dividend histories have confirmed the soundness of their operations.
This text analyzes 12 persistently high-paying dividend shares, as ranked utilizing anticipated whole returns from the Positive Evaluation Analysis Database, from lowest to highest.
Desk of Contents
You may immediately leap to any particular part of the article through the use of the hyperlinks beneath:
Constant Excessive Yield Inventory #12: Gilead Sciences, Inc. (GILD)
5-year anticipated annual returns: 6.5%
Gilead Sciences is a biotechnology firm that operates with a give attention to antiviral medicine and coverings. Its major merchandise embrace therapies for HIV, Hepatitis B, and Hepatitis C (HBV/HCV), however Gilead has additionally ventured into different areas reminiscent of oncology.
Gilead’s major gross sales driver for a few years has been its HCV portfolio. Since its HCV medication remedy sufferers, the affected person pool began to shrink in a short time, which has led to a declining variety of sufferers that begin therapy with considered one of Gilead’s HCV medication. Because of this income peaked in 2015 and have been declining since.
Gilead’s HIV enterprise continues to develop, though proper now Gilead nonetheless has to take a position meaningfully into pipeline medication. Gilead owns the commercialization rights for Filgotinib, developed by Galapagos, which has a very good likelihood of changing into profitable in a number of immunotherapeutic indications.
Click on right here to obtain our most up-to-date Positive Evaluation report on GILD (preview of web page 1 of three proven beneath):
Constant Excessive Yield Inventory #11: MPLX LP (MPLX)
5-year anticipated annual returns: 7.1%
MPLX LP is a Grasp Restricted Partnership that was shaped by the Marathon Petroleum Company (MPC) in 2012. In 2019, MPLX acquired Andeavor Logistics LP.
The enterprise operates in two segments:
Logistics and Storage, which pertains to crude oil and refined petroleum merchandise
Gathering and Processing, which pertains to pure gasoline and pure gasoline liquids (NGLs)
MPLX has generated robust progress for the reason that coronavirus pandemic ended.
Supply: Investor Presentation
In late April, MPLX reported (4/30/24) monetary outcomes for the primary quarter of fiscal 2024. Adjusted EBITDA and distributable money circulate (DCF) per share each grew 8% over the prior yr’s quarter, primarily because of greater tariff charges, but additionally because of elevated gasoline volumes.
MPLX maintained a wholesome consolidated debt to adjusted EBITDA ratio of three.2x and a stable distribution protection ratio of 1.6.
Click on right here to obtain our most up-to-date Positive Evaluation report on MPLX (preview of web page 1 of three proven beneath):
Constant Excessive Yield Inventory #10: Pinnacle West Group (PNW)
5-year anticipated annual returns: 7.2%
Pinnacle West Capital is a holding firm based mostly in Phoenix, Arizona. Its principal subsidiary, Arizona Public Service (APS), offers electrical energy service to greater than 1.3 million Arizona houses and companies.
The corporate has the producing capability to provide 6,300 megawatts, and it employs greater than 6,000 in Arizona and New Mexico. PNW has been paying a dividend for 27 years and rising the dividend consecutively for the previous 11 years.
On August 1st , 2024, Pinnacle West Capital reported second-quarter outcomes for Fiscal Yr (FY)2024. The corporate reported a major improve in internet earnings for the second quarter of 2024, with earnings of $203.8 million, or $1.76 per diluted share, in comparison with $106.7 million, or $0.94 per diluted share, for a similar interval in 2023.
This enchancment was pushed by new buyer charges carried out in March 2024, record-high June temperatures, and elevated buyer utilization.
Click on right here to obtain our most up-to-date Positive Evaluation report on PNW (preview of web page 1 of three proven beneath):
Constant Excessive Yield Inventory #9: Altria Group (MO)
5-year anticipated annual returns: 7.3%
Altria is a tobacco inventory that sells cigarettes, chewing tobacco, cigars, e-cigarettes, and extra beneath a wide range of manufacturers, together with Marlboro, Skoal, and Copenhagen, amongst others.
The corporate additionally has a 35% funding stake in e-cigarette maker JUUL, and a forty five% stake within the hashish firm Cronos Group (CRON).
Nearly all of Altria’s income and revenue remains to be made up of smokeable tobacco merchandise. The Marlboro model nonetheless enjoys the main market share within the U.S. market.
Supply: Investor Presentation
Within the 2024 first quarter, Altria’s internet income of $5.576 billion declined 2.5% from the primary quarter of 2023, with income internet of excise taxes at $4.717 billion, down 1.0%.
Adjusted diluted EPS stood at $1.15, a lower of two.5% in comparison with the identical interval final yr.
Click on right here to obtain our most up-to-date Positive Evaluation report on Altria (preview of web page 1 of three proven beneath):
Constant Excessive Yield Inventory #8: Franklin Sources (BEN)
5-year anticipated annual returns: 8.2%
Franklin Sources is a world asset supervisor with an extended and profitable historical past. The corporate gives funding administration (which makes up the majority of charges the corporate collects) and associated providers to its prospects, together with gross sales, distribution, and shareholder servicing.
On July twenty sixth, 2024, Franklin Sources reported third quarter 2024 outcomes for the interval ending June thirtieth, 2024 (Franklin Sources’ fiscal yr ends September thirtieth.)
Whole belongings beneath administration equaled $1.647 trillion, up $1.9 billion sequentially, because of $3.0 billion of money administration internet inflows, and a $2.1 billion of internet market change, distributions, and different, partly offset by $3.2 billion of long-term internet outflows.
For the quarter, working income totaled $2.123 billion, up 8% year-over-year. On an adjusted foundation, internet earnings equaled $326 million or $0.60 per share, flat in comparison with Q3 2023.
Click on right here to obtain our most up-to-date Positive Evaluation report on Franklin Sources (preview of web page 1 of three proven beneath):
Constant Excessive Yield Inventory #7: T. Rowe Value Group (TROW)
5-year anticipated annual returns: 9.6%
T. Rowe Value Group is among the largest publicly traded asset managers. The corporate offers a broad array of mutual funds, subadvisory providers, and separate account administration for particular person and institutional traders, retirement plans and monetary intermediaries.
On April twenty sixth, 2024, T. Rowe Value reported first quarter outcomes for the interval ending March thirty first, 2024. For the quarter, income elevated 13.6% to $1.75 billion, which was $50 million above estimates. Adjusted earnings-per-share of $2.38 in comparison with $1.69 within the prior yr, which was $0.36 higher than anticipated.
Through the quarter, belongings beneath administration (AUM) improved $97.7 billion, or 6.8%, to $1.54 trillion. Market appreciation of $105.7 billion was partially offset by $8 billion of internet shopper outflows. Working bills of $1.16 billion elevated 10.5% year-over-year, however decreased 7.3% on a sequential foundation.
Click on right here to obtain our most up-to-date Positive Evaluation report on TROW (preview of web page 1 of three proven beneath):
Constant Excessive Yield Inventory #6: Interpublic Group of Cos. (IPG)
5-year anticipated annual returns: 10.4%
The Interpublic Group of Corporations, Inc. offers promoting and advertising and marketing providers worldwide. Its operations are diversified amongst shopper promoting, digital advertising and marketing, communications planning, media shopping for, and knowledge administration providers. The corporate generates near $11 billion in annual revenues.
On July twenty fourth, 2024, Interpublic reported its Q2 outcomes for the interval ending June thirtieth, 2024. For the interval, internet revenues got here in comparatively flat in comparison with final yr at $2.33 billion. This was derived from a adverse 0.6% forex translation impact and a adverse impression of 1.2% from inclinations, offset by natural progress of 1.7%.
Internet earnings got here in at $214.5 million in opposition to $265.5 million within the prior-year interval. This decline was primarily on account of greater billable bills, greater salaries and better curiosity bills, leading to working earnings declining by 2.2% to $184.2 million. Through the quarter, the corporate repurchased $130.1 million value of inventory.
Click on right here to obtain our most up-to-date Positive Evaluation report on IPG (preview of web page 1 of three proven beneath):
Constant Excessive Yield Inventory #5: Enterprise Merchandise Companions LP (EPD)
5-year anticipated annual returns: 10.6%
Enterprise Merchandise Companions was based in 1968. It’s structured as a Grasp Restricted Partnership, or MLP, and operates as an oil and gasoline storage and transportation firm.
Enterprise Merchandise has a big asset base which consists of practically 50,000 miles of pure gasoline, pure gasoline liquids, crude oil, and refined merchandise pipelines.
It additionally has storage capability of greater than 250 million barrels. These belongings acquire charges based mostly on volumes of supplies transported and saved.
Supply: Investor Presentation
Enterprise reported internet earnings attributable to widespread unitholders of $1.5 billion, or $0.66 per unit on a totally diluted foundation, for the primary quarter of 2024, marking a 5 % improve from the primary quarter of 2023. Distributable Money Move (DCF) remained regular at $1.9 billion for each quarters.
Distributions declared for the primary quarter of 2024 elevated by 5.1% in comparison with the identical interval in 2023, reaching $0.515 per widespread unit. DCF lined this distribution 1.7 instances, with $786 million retained.
Click on right here to obtain our most up-to-date Positive Evaluation report on EPD (preview of web page 1 of three proven beneath):
Constant Excessive Yield Inventory #4: Verizon Communications (VZ)
5-year anticipated annual returns: 12.0%
Verizon Communications is among the largest wi-fi carriers within the nation. Wi-fi contributes three-quarters of all revenues, and broadband and cable providers account for a couple of quarter of gross sales. The corporate’s community covers ~300 million individuals and 98% of the U.S.
On July twenty second, 2024, Verizon introduced second quarter outcomes for the interval ending June thirtieth, 2024. For the quarter, income grew 0.6% to $32.8 billion, however this was $240 million beneath estimates. Adjusted earnings-per-share of $1.15 in contrast unfavorably to $1.21 within the prior yr, however this was in-line with expectations.
For the quarter, Verizon had postpaid telephone internet additions of 148K, which was significantly better than the 8,000 that the corporate had in the identical quarter a yr in the past. Retail postpaid internet additions totaled 340K whereas wi-fi retail postpaid telephone churn price stays low at 0.85%.
Wi-fi income grew 3.5% to $19.8 billion whereas the Shopper section improved 1.5% to $24.9 billion. Broadband totaled 391K internet new prospects in the course of the interval, the eight consecutive quarter of at the very least 375K internet provides. This included 378K mounted wi-fi internet additions. The whole mounted wi-fi buyer base is greater than 3.8 million, which is a 69% improve year-over-year.
Verizon reaffirmed its prior steerage for 2024 as nicely. The corporate continues to anticipate wi-fi service income to develop 2% to three.5% and adjusted earnings-per-share in a spread of $4.50 to $4.70.
Click on right here to obtain our most up-to-date Positive Evaluation report on Verizon (preview of web page 1 of three proven beneath):
Constant Excessive Yield Inventory #3: Evergy, Inc. (EVRG)
5-year anticipated annual returns: 12.1%
Evergy is an electrical utility holding firm included in 2017 and headquartered in Kansas Metropolis, Missouri.
By means of its subsidiaries Evergy Kansas, Evergy Metro and Evergy Missouri West, the corporate serves roughly 1.4 million residential prospects, practically 200,000 business prospects and 6,900 industrial prospects and municipalities in Kansas and Missouri.
In early Might, Evergy reported (5/9/24) monetary outcomes for the primary quarter of fiscal 2024. The corporate was negatively affected by unfavorable climate in addition to greater curiosity expense, working & upkeep prices and depreciation.
In consequence, its adjusted earnings-per-share dipped -8% over the prior yr’s quarter, from $0.59 to $0.54, and missed the analysts’ consensus by $0.10.
The enterprise outlook of Evergy is constructive, because the utility has proved resilient to excessive rates of interest and excessive inflation. As a result of unfavorable climate within the higher a part of 2023, Evergy incurred a -5% lower in earnings-per-share final yr, however it reaffirmed its constructive steerage for 2024.
Click on right here to obtain our most up-to-date Positive Evaluation report on Evergy Inc. (preview of web page 1 of three proven beneath):
Constant Excessive Yield Inventory #2: United Parcel Service (UPS)
5-year anticipated annual returns: 12.5%
United Parcel Service is a logistics and bundle supply firm that provides providers together with transportation, distribution, floor freight, ocean freight, insurance coverage, and financing. Its operations are break up into three segments: US Home Package deal, Worldwide Package deal, and Provide Chain & Freight.
On July twenty second, 2024, UPS introduced it agreed to accumulate Estafeta, a Mexican categorical supply firm, increasing its worldwide presence. It’s anticipated to shut on the acquisition by the tip of 2024.
On July twenty third, 2024, UPS reported second quarter 2024 outcomes for the interval ending June thirtieth, 2024. Traders have been unimpressed because the inventory declined by 12% on the day. For the quarter, the corporate generated income of $21.8 billion, a 1.1% year-over-year lower.
The U.S. Home section (making up 67% of gross sales) noticed a 1.9% income lower, with Worldwide additionally posting a 1.0% income lower, whereas Provide Chain Options noticed a 2.6% improve. Adjusted internet earnings equaled $1.79 per share, down 30% year-over-year.
Click on right here to obtain our most up-to-date Positive Evaluation report on UPS (preview of web page 1 of three proven beneath):
Constant Excessive Yield Inventory #1: Eversource Vitality (ES)
5-year anticipated annual returns: 17.4%
Eversource Vitality is a diversified holding firm with subsidiaries that present regulated electrical, gasoline, and water distribution service within the Northeast U.S.
The corporate’s utilities serve greater than 4 million prospects after buying NStar’s Massachusetts utilities in 2012, Aquarion in 2017, and Columbia Fuel in 2020.
Eversource has delivered regular progress to shareholders for a few years.
Supply: Investor Presentation
On Might 1st, 2024, Eversource Vitality launched its first quarter 2024 outcomes. For the quarter, the corporate reported earnings of $521.8 million, a rise from $491.2 million in the identical quarter of final yr. Earnings-per-share of $1.49 in contrast with earnings-per-share of $1.41 within the prior yr.
Earnings from the Electrical Transmission section elevated to $176.7 million, up from $155.1 million within the prior yr, primarily on account of the next degree of funding in Eversource’s electrical transmission system wanted to deal with system capability progress and ship clear power assets for the area.
Click on right here to obtain our most up-to-date Positive Evaluation report on ES (preview of web page 1 of three proven beneath):
Last Ideas
Discovering shares which have excessive dividend yields, lengthy histories of steadily rising dividend funds, and robust progress prospects could be difficult. Whereas steady rate of interest hikes have resulted within the share costs of many high-dividend shares declining, boosting their yields, there are nonetheless not many shares matching our particular standards.
The shares featured on this article all have spectacular dividend progress histories, engaging yields, and prospects for prime whole returns over the subsequent 5 years. Every firm is well-known amongst dividend progress traders and all shares obtain a purchase suggestion from Positive Dividend at the moment.
If you’re inquisitive about discovering high-quality dividend progress shares and/or different high-yield securities and earnings securities, the next Positive Dividend assets shall be helpful:
Excessive-Yield Particular person Safety Analysis
Different Positive Dividend Sources
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