Identifying Value Stocks with Good Dividends in Today's Market

Value stocks with good dividends can provide a stable source of income, but it's essential to identify the right ones. A dividend yield of 4% or higher is a good starting point, as seen in the case of companies like Realty Income (O) and National Retail Properties (NNN), which have consistently paid high dividends.

When analyzing potential value stocks, it's crucial to look at their dividend payout ratio, which should be below 50%. This ensures that the company can sustain its dividend payments over time. Companies like AT&T (T) and Procter & Gamble (PG) have managed to maintain a low dividend payout ratio.

A strong history of paying consistent dividends is also a key indicator of a value stock's quality. Companies like Johnson & Johnson (JNJ) and 3M (MMM) have been paying dividends for over a century, demonstrating their commitment to returning value to shareholders.

By considering these factors, you can increase your chances of finding value stocks with good dividends that meet your investment goals.

Value stocks with good dividends are a great way to earn a steady income. With the average yield of the 400 S&P 500 stocks that pay a dividend being 2.64%, you can find stocks yielding much more than that.

There are now 79 stocks in the S&P 500 that yield as much or more than 10-year Treasuries, which have a yield of 4.1%. This is a significant shift, as just weeks ago, Treasury yields were 20% higher.

You can find high-yielding value stocks in various sectors, including Industrials, Consumer Staples, and Healthcare. For example, companies like A.O. Smith, with 32 years of dividend growth, and Cintas, with 41 years of dividend growth, offer attractive yields.

Here are some high-yielding value stocks to consider:

These stocks have a long history of paying dividends and offer attractive yields. However, it's essential to do your research and consider various factors before investing in any stock.

If you're looking for individual stocks with good dividends, you might want to consider the likes of Exxon Mobil, which has been consistently paying out dividends for 42 years.

Some notable examples include Chevron, which has been paying out dividends for 37 years, and T. Rowe Price, which has been doing so for 38 years.

If you're looking for more options, you could consider the following list of stocks with 30+ years of dividend growth:

Picking individual stocks can be a daunting task, but it doesn't have to be. By considering a few key factors, you can make informed decisions and increase your chances of success.

One factor to consider is the company's history of paying consistent dividends. Companies like Exxon Mobil, with 42 years of uninterrupted dividend growth, and Chevron, with 37 years, have a proven track record of delivering value to shareholders.

A company's sector can also play a significant role in its stock performance. For example, companies in the Consumer Staples sector, such as Procter & Gamble with 68 years of dividend growth, tend to be less volatile and more resilient during economic downturns.

When evaluating a company's dividend growth, it's essential to look at the number of years they've been increasing their dividend payments. Companies like 3M, with 64 years of consecutive dividend growth, and Colgate-Palmolive, with 62 years, demonstrate a commitment to sharing their profits with shareholders.

Here's a list of companies with 50+ years of consecutive dividend growth:

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The S&P 500 Dividend Aristocrats are a group of companies that have consistently increased their dividend payouts for many years. This is a testament to their financial health and stability.

Some of these companies have been around for a long time, with a proven track record of success. For example, Johnson & Johnson has been paying consecutive quarterly dividends since 1916, and has increased its dividend for 63 years in a row.

The Industrials sector is well-represented among the Dividend Aristocrats, with companies like 3M, Emerson Electric, and Caterpillar all having a long history of dividend growth.

Here are some examples of Industrials sector companies that have made the list:

These companies have demonstrated their ability to generate consistent cash flow and reward their shareholders with increasing dividend payments.

Reinvesting dividends is one of the smartest strategies to build wealth and long-term financial security.

The idea is simple; every quarter or month when you get a dividend payout, you take some portion of it and reinvest it back into the company.

You can specify whether you want to put back in some, none, or all of your dividends.

These programs automate the reinvestment process, making it easy to take advantage of this strategy.

When evaluating value stocks with good dividends, it's essential to look for companies with a strong track record of paying consistent dividends.

The article highlights Coca-Cola as a prime example, with a 130-year history of paying dividends, including 58 consecutive years of increasing payouts.

A dividend yield of 3% or higher is often considered attractive for investors seeking regular income.

In the case of Johnson & Johnson, the company's dividend yield has averaged 3.2% over the past decade, making it an attractive option for income-seeking investors.

Investors should also consider the dividend payout ratio, which measures the percentage of earnings paid out as dividends.

A dividend payout ratio of 50% or less is generally considered healthy, as seen in the example of Procter & Gamble, which has maintained a payout ratio of around 40% over the past few years.

A diversified portfolio of value stocks with good dividends can provide a stable source of income and potentially lower volatility.

By investing in companies like ExxonMobil, which has a long history of paying consistent dividends, investors can benefit from a relatively stable source of income.

Expeditors International of Washington, a logistics company, has been paying a semiannual dividend for over a quarter-century, hiking it every year since 1994. It has a consistently low payout ratio, which helps ensure it can maintain its place on the list of best dividend stocks.

Albemarle, a manufacturer of specialty chemicals, most recently hiked its dividend in February 2023 by 1.3% to 40 cents per share quarterly. Its lithium products are a key driver of its bull case, with a positive outlook on electric vehicle adoption expected to accelerate.

Essex Property Trust, a real estate investment trust, has been hiking its payout since going public in 1994. Its most recent increase came in February 2024, with a 6.1% raise to $2.45 per share quarterly.

Atmos Energy, a natural gas distributor, has a strong presence in Texas and Louisiana, serving over 3 million distribution customers. It has maintained a robust balance sheet and potential for above-average earnings growth.

Duke Energy owns and distributes electricity to over 7 million customers across the American Southeast and Midwest. It has maintained a regular dividend payout for over 90 years.

NextEra Energy is a utility company poised to reap the benefits of the renewable energy market, with a projected 8% annual growth. Its stock remains bullish, with a significant jump in dividend yields expected.

Roper Technologies, an industrial company, has been an equity income machine for over three decades. Its most recent hike was declared in November 2024, with a 10% raise to 82.50 cents per share quarterly.

A.O. Smith, a manufacturer of commercial and residential water heaters, has maintained a 32nd consecutive year of dividend hikes. Its 10-year compound annual growth rate of its dividend now stands at over 18%.

Ecolab, a provider of water treatment and other industrial-scale maintenance services, has been a proven winner over the long haul. Its most recent hike came in December 2024, with a 14% increase in the quarterly payment to 65 cents per share.

Chevron, an integrated oil giant, has more than three decades of uninterrupted dividend growth under its belt. Its most recent increase was announced in February 2024, with a 7.9% bump in the quarterly dividend to $1.63 per share.

Here are some of the top dividend stocks with a long history of consistent dividend growth:

These companies have a proven track record of consistently increasing their dividend payouts, making them attractive options for income investors.