Seeking Permanent Wealth through Passive Investments? Consider These 3 Stocks Instantly.
If you're seeking steadfast income sources for the long haul, you might want to begin your exploration here, delving into three top-notch dividend stocks that could fit seamlessly into virtually any investor's portfolio. These stocks not only supply inflation-defying dividend growth but also boast robust capital appreciation potential.
1. Agree Realty Corporation
It's essential to note that Agree Realty Corporation (ADC) isn't a traditional stock. Instead, it's an investment trust known as a Real Estate Investment Trust (REIT). Though bought and sold like regular stocks, the businesses underlying these trusts predominantly possess income-generating properties like shopping centers, offices, or hotels. The majority of their profits are typically handed out to shareholders as dividends.
When it comes to REITs, Agree Realty Corporation is one of a kind. With a concentration on brick-and-mortar retailing, the company boasts ownership of 2,271 properties across 47 million square feet of assorted retail spaces.
At first glance, it might seem risky, given the ongoing e-commerce surge that currently plagues traditional retail. However, industry analysts like Coresight have reported that as many as 7,000 stores across the US alone have closed shops this year, marking the worst period since 2020.
However, this isn't as much an indicator of brick-and-mortar retail's slow demise as it is a symptom of the industry's evolution, with underperforming establishments being phased out to make way for stronger contenders. By the end of September, 99.6% of Agree Realty's properties were leased—an impressive occupancy rate largely paying homage to its prestigious roster of renters, including retail titans such as Walmart, Tractor Supply, Dollar General, and TJX.
Agree Realty Corporation's longevity can be best gauged by its financial figures, which are nothing short of stellar. Over the past decade, Agree Realty Corporation has posted an average annualized dividend growth rate of 5.7%. This growth, coupled with the stock's price appreciation, brings the average net annual return to an impressive 12.3% since its debut in 2011.
Newcomers to the scene stand to reap the rewards of this monthly (yes, monthly) dividend, with a generous current forward-looking yield of 4.1%.
2. Bristol-Myers Squibb Company
Investing in pharmaceutical stocks can be a tricky proposition due to patent expirations and the emergence of emerging drug development technologies. However, the winners in this field are those that actively anticipate and respond to these challenges.
Enter Bristol-Myers Squibb (BMY), which excels at precisely this - spotting and procuring (or developing, as needed) new drug candidates.
Its most notable success story includes the anti-clotting drug Eliquis, which was initially discovered by Bristol-Myers Squibb in the late nineties. Recognizing its potential but lacking the resources to bring it to market, the company formed a collaborative partnership with Pfizer in 2007, with Eliquis arriving on the scene in 2012.
Revlimid is another testament to Bristol-Myers Squibb's capabilities. Initially approved in 2005, this cancer drug became part of the company's arsenal via an acquisition of Celgene in 2019. Since then, Bristol-Myers Squibb has successfully expanded Revlimid's therapeutic applications, generating last quarter's revenue of $1.2 billion and pushing yearly revenues near the $5 billion mark.
Despite the occasional hiccup, this calculated approach has consistently placed new, profitable drugs into Bristol-Myers Squibb's stable, including the recent spate of US FDA approvals.
The icing on the cake for income investors is Bristol-Myers Squibb's consistent dividend growth, having increased its payout for 16 consecutive years. Interested buyers can expect a dividend yield of 4.4%.
3. JPMorgan Chase & Co.
Investors seeking steady income streams over an extended period might find merit in focusing their attention on JPMorgan Chase & Co. (JPM), even with a less-than-impressive forward-looking dividend yield of 2.1%.
Though not unusually high, the low-yield performance is tempered by other strengths, such as value and reliability. For instance, since emerging from the 2008 subprime mortgage crisis, JPMorgan Chase has steadily increased its dividend - a feat it has maintained every year since 2010.
This growth may be dwindling at present, however, reflecting recent economic headwinds and volatile interest rates that have affected the company's net interest income.
Nonetheless, the enduring culture of dividend enhancements at JPMorgan Chase indicates that income-focused investors may reap long-term rewards upon buying into the stock.
Still, let's maintain a balanced viewpoint. This varied financial juggernaut boasts various income handles, such as basic banking, market-related services, wealth management, and even investment banking. Each of these segments experiences fluctuations, but JPMorgan Chase excels in all, always prepared to seize chances on any of these fronts when they emerge. There's a clear reason why it stands as the country's largest singular bank, with assets totalling a staggering $3.6 trillion!
The disruption caused by the 2008 economic crisis, which paused the dividend payments for several years, is worth noting. But fear not, that was an extraordinary incident that scarcely repeats, if at all - primarily due to the numerous regulatory safeguards that have been established since then.
Ultimately, it might not be a company known for high growth. However, as long as the world relies on money for buying and selling goods and services, financial intermediaries like JPMorgan will remain indispensable. It's a business well-suited to generating consistent, rising dividend payments.
- While researching potential investment opportunities, don't forget to consider putting some of your money into financial sectors like banking. JPMorgan Chase & Co. (JPM) is a stable choice due to its diverse income sources and strong history of dividend payments, even in turbulent economic times.
- If you're looking for a reliable source of income through dividends, Bristol-Myers Squibb Company (BMY) could be an attractive choice. Known for its successful track record in bringing new drugs to market, BMY has a consistent record of dividend growth for 16 consecutive years, offering investors a current dividend yield of 4.4%.
