Dividend stocks, sought by many investors because they produce a gentle stream of income, are typically more attractive to a broader swath of investors when the stock market is down or sputtering. That’s because while stock prices fluctuate, good dividends are constant and even increase, boosting the entire return of the stock.
In actual fact, when times are tough, dividends have generated a better percentage of the entire return of the S&P 500. For instance, within the Seventies, 73% of the entire return of the S&P 500 got here from dividends, while in the course of the bull market in the course of the 2010s, it was just 17%.
The bulls have largely been running the stock market over the past 18 months, however the near term in uncertain. Thus, it is perhaps a great time to contemplate some good, stable dividend stocks to balance things out. Listed below are the three best dividend stocks to purchase without delay.
1. Nexstar Media Group: 4.17% yield
Nexstar Media (NASDAQ:NXST) owns greater than 200 television stations and various networks, including the CW and Food Network. In actual fact, the corporate owns more TV stations than every other firm within the country.
Nexstar is coming off 1 / 4 during which it posted record revenue and saw its earnings jump 90% on higher revenue, cost reductions and the sale of its Broadcast Music affiliate.
As such, Nexstar has been an amazing dividend stock, having increased its dividend payments for 10 straight years. It’s now paying out a $1.69-per-share dividend after boosting its dividend by 25% in the primary quarter. The $1.69-per-share quarterly payout comes out to $6.76 per share annually for a yield of 4.17% with a payout ratio of 48%.
This must be an excellent yr for Nexstar because it expects record ad spending in a presidential election yr. It’s trading at $163 per share and is up about 2% yr up to now (YTD) with a median price goal of $207 per share.
This stock is flashing a buy signal without delay for its dividend and return potential.
United Bankshares (NASDAQ:UBSI) is a small regional bank with a giant dividend. In actual fact, it recently earned Dividend-King status, marking 50 consecutive years of dividend increases in 2023.
The bank recently authorized a dividend of 37 cents per share at a yield of 4.34%, which is amongst the best inside its sector. Trading at just $34 per share, investors could load up on these shares and feel pretty secure that the bank will keep raising its dividend based on its track record.
United’s capital strength has allowed it to accumulate Piedmont Bankshares based in Georgia, which is able to strengthen its presence within the Mid-Atlantic and Southeast regions of the U.S. After the deal closes within the fourth quarter, United will probably be the Thirty ninth-largest U.S. bank with $32 billion in assets and 240 branches in eight states and Washington, D.C.
The stock is viewed as a consensus buy amongst analysts with a media price goal of $36.50 per share. This latest deal should strengthen United in a fractured regional-banking market.
3. Verizon Communications: 6.71% yield
Verizon Communications (NYSE:VZ), the nation’s second-largest wireless carrier, has had a choppy 10 years, with its share price wobbling right around flat.
Nonetheless, its dividend has remained strong through all of it. In actual fact, Verizon has managed to extend its dividend for 19 consecutive years, and it currently pays out a dividend of 67 cents per share at a yield of 6.71%.
That’s one in all the best dividend yields on the whole market, and it appears to be manageable without delay with a payout ratio of around 56%. The payout ratio is the proportion of earnings that go to pay the dividend, and anything within the 50% range or lower is usually considered pretty good.
Verizon also enjoys some momentum, because it saw a slight increase in operating revenue in the primary quarter and a 3.3% rise in wireless service revenue. Further, the corporate increased its free money flow to $2.7 billion from $2.3 billion in the identical quarter a yr ago, which is a critical metric for maintaining its dividend.
It was also revealed that each Verizon and T-Mobile are in talks to accumulate pieces of U.S. Cellular, a robust regional carrier, with each company buying their very own parts of the corporate in separate transactions. This deal could increase Verizon’s market share if it goes through.
Verizon stock is up by about 3% YTD to $40 per share and has a median price goal of $45.50 per share, so analysts expect growth.
Should you are frightened concerning the markets and need some solid dividend stocks to bolster your portfolio, these are three excellent options.