Most of us would do well to invest in healthy and growing dividend-paying stocks to some degree. They’re likely not only to appreciate in value over time but also to pay out cash along the way, often increasing their payouts. What’s not to like? Here are three dividend-paying stocks to consider now.
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1. Realty Income
Meet Realty Income (O 0.21%). You may not have heard of it, but it’s a real estate investment trust (REIT) — a company that owns lots of real estate, leasing it to tenants — with a recent dividend yield of 5.1%. The company’s dividend is rather dependable, as it’s been paid for 673 consecutive months and has increased for more than 30 years in a row.
Today’s Change
(-0.21%) $-0.13
Current Price
$63.04
Key Data Points
Market Cap
Day’s Range
$62.92 – $63.69
52wk Range
$55.86 – $67.94
Volume
65.1K
Avg Vol
6M
Gross Margin
49.68%
Dividend Yield
5.13%
Realty Income uses “triple-net leases” in its business, requiring tenants to cover real estate taxes, property insurance, and operating expenses. The company recently boasted a portfolio of over 15,500 properties in all 50 U.S. states and parts of Europe. It’s well diversified, with about 1,800 clients in more than 90 different industries. It’s diversifying into data centers, too.
This stock offers an easy way to invest in real estate.
2. Comcast
Comcast (CMCSA +0.54%) is a multifaceted business, offering internet, TV, and phone services (with brands such as Xfinity), as well as media and streaming platforms (such as NBC, Telemundo, and Peacock) — and theme parks and film studios (such as Universal Studios and DreamWorks Animation).
Today’s Change
(0.54%) $0.13
Current Price
$23.47
Key Data Points
Market Cap
Day’s Range
$23.35 – $23.73
52wk Range
$22.13 – $33.74
Volume
608.6K
Avg Vol
35.3M
Gross Margin
57.18%
Dividend Yield
5.57%
Comcast recently sported a sizable dividend yield of 5.6%, and if you factor in the effect of share buybacks, which reduce the total share count and leave each remaining share more valuable, the total yield for shareholders is around 13%.
The stock is reasonably priced, too, with a recent forward-looking price-to-earnings (P/E) ratio of 7, below the five-year average of 9.7, with a recent price-to-sales ratio of just 0.7. Those low numbers reflect rather low expectations from investors. Why?
Well, the company has struggled recently, averaging annual losses of 12% over the past five years (as of July 7). It has a lot of debt, its TV business is fighting against streaming services, and it has a poor customer service reputation, among other issues.
There’s reason to hope, though. Comcast plans to spin off NBCUniversal to focus mainly on its cable TV and broadband businesses, which deliver robust cash flow. Those believing in Comcast’s turnaround prospects can be paid well to wait.
3. Verizon Communications
Verizon Communications (VZ +1.48%) sports a fat dividend yield of 6.6%. Better still, it has been increasing its dividend for 20 years in a row (though generally modestly).
Verizon isn’t likely to be a fast grower. But it’s another cash cow, generating revenue from close to 150 million wireless customers and more than 16 million broadband connections. It’s expanding internationally, too, planning to spin off its international enterprise-focused business into a joint venture with London-based BT Group.
Today’s Change
(1.48%) $0.61
Current Price
$42.15
Key Data Points
Market Cap
Day’s Range
$41.34 – $42.30
52wk Range
$38.39 – $51.68
Volume
9.5M
Avg Vol
27.1M
Gross Margin
45.50%
Dividend Yield
6.55%
Another plus is its low volatility, which may be welcome should the market pullback in the near future. And its stock is appealingly valued, with a recent forward P/E of 8.6, a bit below its five-year average of 8.7.
Take a closer look at any of these stocks that interest you, as each could provide significant returns via dividends.
