5 Safe Dividend Aristocrat Favorites Can Survive a Fall Market Sell-Off ptasha / iStock via Getty Images 24/7 Wall St. Insights The S&P 500 is up a stunning 16.5% this year, after a massive 2023. September is typically the worst-performing month for the stock market. Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab this free report today: Access 2 legendary, high-yield dividend stocks Wall Street loves. Dividend stocks are a favorite among investors for good reason. They provide a steady income stream and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time.
**Understanding the Power of Total Return**
**Capital Gains vs.
This approach focuses on the long-term growth potential of a company, rather than short-term fluctuations in the market. The article emphasizes the importance of understanding the difference between total return and capital gains. While capital gains are the profits made from selling an asset at a higher price than its purchase price, total return encompasses both capital gains and dividends. This distinction is crucial for investors seeking to maximize their returns.
* **Strong financial performance:** Companies must demonstrate consistent profitability and strong cash flow. * **Solid track record of growth:** Companies must show a history of consistent revenue and earnings growth. * **Dividend payout ratio:** The dividend payout ratio, which measures the proportion of earnings paid out as dividends, must be sustainable. * **Dividend growth:** Companies must demonstrate a history of consistent dividend growth.
Why do we cover the Dividend Aristocrats? relif / Getty Images S&P 500 companies that have paid and raised their dividends for 25 years or longer are the kind that growth and income investors want to buy and hold in stock portfolios forever. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely keep their ground much better than volatile technology names. Chevron MattGush / iStock Editorial via Getty Images This integrated giant is a safer option for investors looking to position themselves in the energy sector, and it pays a rich 4.51% dividend. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide through its subsidiaries. It operates in two segments.
The Upstream segment is involved in the following: Exploration, development, production, and transportation of crude oil and natural gas Processing, liquefaction, transportation, and regasification associated with liquefied natural gas Transportation of crude oil through pipelines Transportation, storage, and marketing of natural gas, as well as operating a gas-to-liquids plant The Downstream segment engages in: Refining crude oil into petroleum product Marketing crude oil, refined products, and lubricants Manufacturing and marketing renewable fuels Transporting crude oil and advanced products by pipeline, marine vessel, motor equipment, and rail car Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives
Chevron announced last fall that it has entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion. Hormel Foods Justin Sullivan / Getty Images With a dependable 3.41% dividend and a host of well-known products, this is a very safe idea for investors now. Hormel Foods Corp. (NYSE: HRL) develops, processes, and distributes various meat, nuts, and other food products to retail, food service, deli, and commercial customers in the United States and internationally.
It operates through three segments: Retail Foodservice International The company provides various perishable products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacon; and shelf-stable products comprising canned luncheon meats, nut butter, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and others. It sells its products under these brands: Hormel Always Tender Applegate Austin Blues Bacon 1 Black Label Bread Ready Burke Café H Ceratti Chi-Chi’s Columbus Compleats Corn Nuts Cure 81 Dan’s Prize Di Lusso Dinty Moore Don Miguel Doña Maria Embasa Fast N Easy Fast N Easy Fire Braised
Fontanini Happy Little Plants Herdez Hormel Gatherings Hormel Square Table Hormel Vital Cuisine House of Tsang Jennie-O Justin’s La Victoria Layout Lloyd’s Mary Kitchen Mr. Peanut Natural Choice Nut-rition Old Smokehouse Oven Ready Pillow Pack Planters Rosa Grande Sadler’s Smokehouse Skippy Spam Special Recipe Thick & Easy Valley Fresh Wholly Kimberly-Clark Tim Boyle / Getty Images This consumer staples leader is a safe bet for nervous investors, paying a dependable 3.31% dividend. Kimberly Clark Corp. (NYSE: KMB) and its subsidiaries manufacture and market personal care and consumer tissue products worldwide. It operates through three segments. The Personal Care segment offers a diverse range of products, including:
Disposable diapers Swim pants, training and youth pants, baby wipes Feminine and incontinence care products, as well as related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depend, Plenitud, Softex, Poise, and other brand names The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the brand names: Kleenex Scott Cottonelle Viva Andrex Scottex Neve The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands. Essex Property Trust Sundry Photography / iStock Editorial via Getty Images
(ESS) is a real estate investment trust (REIT) that focuses on owning and operating high-quality, income-producing properties in the United States. The company’s portfolio consists of apartment complexes, primarily located in the West Coast and the South. Essex Property Trust is a well-established REIT with a long history of consistent dividend payments.
It offers: Electric services to approximately 3.6 million customers in New York City and Westchester County Gas to about 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County Steam to approximately 1,530 customers in parts of Manhattan The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey and gas to about 0.1 million customers in southeastern New York. In addition, it operates: 543 circuit miles of transmission lines 15 transmission substations 63 distribution substations 87,951 in-service line transformers 3,869 pole miles of overhead distribution lines 2,320 miles of underground distribution lines
4,359 miles of mains 377,741 service lines for natural gas distribution Consolidated Edison owns, develops, and operates renewable and energy infrastructure projects, provides energy-related products and services to wholesale and retail customers, and invests in electric and gas transmission projects. Five Dividend Kings Provide Perfect Passive Income Streams for Retirement