Dividend stocks may not be flashy investments, but they can be dependable ones, particularly if you’re worried about the market. They can generate recurring income for your portfolio and help boost your overall returns, which can be important in a downturn.
Three stocks that can be compelling options for investors today are AbbVie (ABBV 0.85%), Chevron (CVX 0.96%), and Vici Properties (VICI 1.18%). They offer high yields, have strong fundamentals, and these stocks all outperformed the S&P 500 back in 2022, when the market went into a tailspin. Here’s a closer look at why you may want to consider loading up on these solid dividend stocks today.
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AbbVie
Drugmaker AbbVie is a top healthcare company to invest in, regardless of economic conditions. It has a broad portfolio of drugs, which helps position it for strong long-term growth. Its revenue rose by about 9% last year, driven by strong results from its immunology and neuroscience segments. But the business also has drugs in other areas, including oncology and eye care. It also owns Botox. Its operations are broad and diverse, making AbbVie one of the best healthcare stocks to own.
Its stability has enabled it to pay dividends and raise them consistently over the years. Currently, the stock yields 3.3%, which is close to three times the S&P 500 average of 1.2%. It’s an excellent payout for a stock with tremendous upside potential. Based on analyst expectations, AbbVie’s stock trades at a forward price-to-earnings multiple of just 14, making it an attractive value buy today.
Today’s Change
(-0.85%) $-1.78
Current Price
$206.75
Key Data Points
Market Cap
$372B
Day’s Range
$205.73 – $209.80
52wk Range
$168.54 – $244.81
Volume
49K
Avg Vol
7.1M
Gross Margin
70.12%
Dividend Yield
3.16%
Back in 2022, when the S&P 500 crashed by 19%, AbbVie rose by a similar amount, defying the broader market bearishness. It could once again be a safe-haven investment for investors to turn to if there’s a near-term crash, given not only its high dividend but also its attractive valuation.
Chevron
Investing in oil and gas stocks can be a good move for dividend investors, particularly when oil prices are as high as they are now. In 2022, when the markets crashed, oil prices were also elevated, and back then, Chevron’s stock rallied by 53%, and that’s without factoring in its dividend.
This year, the stock is up around 23%. While that has an inverse effect on its yield, Chevron’s stock still pays 3.8%, which can be highly valuable for dividend investors. It has also been increasing its payout for decades, giving you plenty of incentive to just remain invested for the long haul.
Today’s Change
(-0.96%) $-1.80
Current Price
$185.22
Key Data Points
Market Cap
$373B
Day’s Range
$184.05 – $187.24
52wk Range
$132.33 – $214.71
Volume
136K
Avg Vol
13M
Gross Margin
14.66%
Dividend Yield
3.69%
The business can experience volatility due to oil prices, but its financial results have remained strong: Chevron has generated an operating profit of at least $16 billion in each of the past four years, and its annual free cash flow has also been above $15 billion over that time frame.
It’s a solid investment to hold on to, as the stock has proven to be a reliable source of dividend income across a wide range of economic conditions.
Vici Properties
Vici Properties is the highest-yielding stock on this list, paying 6.3%. The real estate investment trust (REIT) owns various properties, including casinos, racetracks, golf courses, bowling alleys, and hotels. The company generated strong and steady results last year, with revenue rising by 4% to just over $4 billion, and net income climbing by a similar percentage, to $2.8 billion.
By having a diverse mix of properties, the REIT can be in a good position to do well even if the economy is struggling, and it was indeed a safe investment in 2022 when the market crashed. That year, shares of Vici Properties rose by a little less than 8%. It was a good, steady performance for the REIT. And when combined with its high dividend, its total returns were around 13%.
Today’s Change
(-1.18%) $-0.34
Current Price
$28.02
Key Data Points
Market Cap
$30B
Day’s Range
$27.95 – $28.33
52wk Range
$26.55 – $34.01
Volume
1.2M
Avg Vol
9.5M
Gross Margin
99.24%
Dividend Yield
6.29%
This year, the stock has been underperforming the S&P 500 slightly, as it’s up around just 1%. But with a strong dividend and the potential to be a safe-haven investment under more challenging market conditions, it can prove to be an underrated buy right now. Vici’s dividend, while high, doesn’t appear to be in any danger as the REIT’s funds from operations per share came in at $2.61 last year, comfortably higher than the rate of its annual dividend per share — $1.80.
For dividend investors, this may be one of the better stocks to buy right now.
