Two Notable Dividend-Yielding Shares to Purchase in December
With just a few weeks left in 2024, the S&P 500 is nudging towards a 26% increase for the year. The bullish market momentum seems set to carry on, but historical high valuations raise some questions about its continuation into 2025. In such times of uncertainty, it's wise to diversify your portfolio with a few dividend stocks to cushion against potential downturns. Two stellar picks to consider are Agree Realty (ADC 0.61%) and Ally Financial (ALLY 3.68%).
Agree Realty: The Monthly Dividend Giant
Agree Realty, a real estate investment trust (REIT), shifted to monthly dividends in 2021, earning it the nickname 'The New Monthly Dividend Company.' Its business model, with a stable and growing revenue base, is diverse enough to accommodate top retail tenants like Walmart and Tractor Supply. The company's high yield offers a rare chance to secure a steady income stream, and its strong dividend growth potential makes it an attractive investment option.
Agree Realty's retail-focused strategy, with a particular emphasis on omnichannel retailers, also positions it for future growth. Its keen interest in emerging markets, such as online shopping trends, sets it apart from its contemporaries. With more than 168,000 potential investment properties in resilient industries, the sky seems the limit for this small but growing powerhouse.
Ally Financial: The Surprising Dividend Dynamo
Ally Financial, with its all-digital banking services and its leadership in the prime auto loan market segment, is an intriguing dividend stock option. Anchored by a rich history as G.M.'s financial arm, Ally is a steady ship amidst the volatile tides of the banking industry. Its efforts to manage the risks posed by high interest rates and the associated defaults have demonstrated its resilience and commitment to its shareholders.
Ally's modest price tag and high dividend yield make it an attractive investment option, especially considering the company's profitable streak and ambitious growth plans. Its focus on reinforcing its digital presence, fortifying its prime auto loan portfolio, and expanding its customer base ensure that it boasts an impressive growth trajectory.
In conclusion, when the path ahead seems unclear for the S&P 500, finding investment opportunities in dividend stocks like Agree Realty and Ally Financial is a smart move. Both offer solid prospects in their respective industries, providing steady income streams and attractive growth potential to prospective investors. Stock picking and investment decisions should always be informed by individual financial objectives, risk tolerances, and thorough research.
In light of the potential uncertainty in the S&P 500's continuation into 2025, investing in dividend stocks like Agree Realty and Ally Financial can provide a steady income stream and growth potential. Agree Realty, with its monthly dividends and retail-focused strategy, offers a high yield and strong dividend growth potential, while Ally Financial's all-digital banking services and prime auto loan market leadership make it a resilient and attractive investment option.
