With many experts continue to watch tough times ahead For the stock market, maybe it’s time to look at dividend stocks for 2023.
Dividend stocks are a way to diversify a portfolio that may be chasing growth too obsessively. They generate income in good times as well as in bad times and especially important now is the period of high inflation. (U.S. consumer prices rose 7.7% in October from a year ago.)
They also tend to outperform the S&P 500 over the long term.
A prominent portfolio focused on dividend-paying stocks belongs to the Bill & Melinda Gates Foundation Trust. With trusts used to pay for so many initiatives, income needs to continue to flow into it.
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Dividend stocks help Make this happen.
Here are three dividend stocks that take up significant space in a fund’s holdings.
Waste Management (WM)
It’s not the sexiest industry, but waste management is an essential one.
Regardless of what happens to the economy, municipalities have little choice but to pay companies to get rid of our mountains of trash, even as those costs add up.
As one of the biggest players in the space, Waste Management remains in a entrenched position.
The stock has nearly doubled in the past five years. In the first nine months of 2022, operating revenue increased 11% year-on-year.
Currently offering a yield of 1.6%, Waste Management’s dividend has grown 19 years in a row.
The company has paid out nearly $1 billion in dividends over the past year, and free cash flow of about $2.5 billion for 2021 means investors don’t need to worry about it. get their check.
As a company whose fortunes often follow the fortunes of the larger economy — it happens when your equipment is a fixture at construction sites around the world — Caterpillar is in a position attractive after the pandemic.
The company’s revenue is suffering from crippled global supply chains, but President Joe Biden’s $1.2 trillion infrastructure bill means there could be a lot of work. construction going on in the US in the near future.
Caterpillar’s mining and energy businesses also offer commodity exposure, which tends to do well in times of high inflation.
The company’s shares have driven the price of raw materials and gasoline up more than 60% over the past five years.
After posting an 8% gain in June, Caterpillar’s quarterly dividend now stands at $1.20 per share and offers a yield of 2.0%. The company has increased its dividend every year for 28 consecutive years.
With groceries seen as essential business, Walmart was able to keep more than 4,700 of its stores in the United States open during the pandemic.
Not only has the company grown in both profits and market share since COVID raged across the planet, but its reputation as a low-cost haven has made Walmart popular with retailers as prices rise.
Walmart has steadily increased its dividend over the past 49 years. Its annual payout is currently $2.24 per share, which translates into a dividend yield of 1.5%.
Walmart is currently trading at $153 a share, well below the 52-week high of $160.77 set in April.
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This article is for information only and should not be construed as advice. It is provided without warranty of any kind.