If you’re in or near retirement, and looking for some relatively safe income stocks, I have three excellent stocks to consider. Verizon Communications (VZ +0.84%), home depot (HD +0.77%)And Duke Energy (DUK +1.51%) All pay high dividends, plus their payouts are much higher than S&P 500 Average 1.1%. Not only do their dividend payments look safe, but they have been growing over the last few years.
Here’s a closer look at these stocks and why they could be ideal investments to put in your portfolio if your priority is to collect some recurring cash flow.
Image Source: Getty Images.
Verizon Communications
It’s not easy to find a stock that pays 6.1% in dividends, and that’s also a fairly safe buy, but Verizon certainly fits the criteria. What retirees will love about this stock is its stability and reliability. It generated modest single-digit growth, but enough to ensure its dividend keeps growing.
Verizon has grown its payout for 20 consecutive years, which is important for income investors, as a commitment to growth can help offset at least some of the effects of inflation. The company’s current quarterly dividend is $0.7075, and has increased by 25% over the past decade, yielding an average compound annual growth rate (CAGR) of 2.3%.
today’s change
(0.84%) $0.39
current price
$46.76
key data points
market cap
$194B
day limit
$45.81 -$47.02
52wk range
$38.39 -$51.68
volume
25m
average volume
25m
gross margin
45.50%
dividend yield
5.96%
Verizon shares are up 15% this year, but with the stock trading at 11 times trailing earnings, it’s not a very expensive investment to buy. This is a great example blue chip dividend stocks Which retired people can maintain with confidence for a long period.
home depot
Concerns about slowing economic conditions and a reduction in discretionary spending are weighing on Home Depot’s stock over the past year, as it has declined 21%. The home renovation giant thrives when people are buying and renovating homes, and unfortunately, the real estate market is not as strong these days.
But with time, this is likely to change. Home Depot has a strong business, and its stores are often the go-to destination for people working on home repair and renovation projects. Although it is struggling to generate much growth these days, that has more to do with the economy than anything else. In its most recent fiscal year (which ended February 1), its sales grew by just over 3%. Over time, conditions will improve, and Home Depot should return to generating strong growth.
today’s change
(0.77%) $2.30
current price
$299.81
key data points
market cap
$296B
day limit
$297.30 -$303.78
52wk range
$296.88 -$426.75
volume
6.4M
average volume
4.2M
gross margin
31.33%
dividend yield
3.10%
In the meantime, it’s still an excellent dividend stock. It yields 3.1%, and the company has more than tripled its dividend over the past decade quarterly payment From $0.69 to $2.33. Its average CAGR is 12.9%.
Duke Energy
Completing the list is Duke Energy stock, which pays 3.5%. Duke is a leading energy company in the country that serves millions of people. utility companies They can be highly valued income investments because they generate stable and predictable income, which, in turn, allows them to provide stable dividend payments to their shareholders.
The company has been steadily growing its business over the past few years, with revenues expected to grow from $29 billion in 2022 to more than $32 billion last year. Although it’s not a growth machine by any means, that kind of steady growth enables it to support and increase its dividend. Over the last 10 years, the company’s dividend has grown 29%, with an average CAGR of 2.6% during that period.
today’s change
(1.51%) $1.83
current price
$122.78
key data points
market cap
$94B
day limit
$121.21 -$122.94
52wk range
$113.39 -$134.49
volume
91K
average volume
3.9M
gross margin
30.76%
dividend yield
4.39%
The stock trades at 19 times its trailing earnings, which is well below the S&P 500’s average of 27. Apart from being a moderately priced stock, it is also a good choice if you want stability, Duke’s stock has an average beta of only 0.40 over the last five years, which shows that it does not follow market movements very closely. Whether you’re looking to reduce risk or just collect great yield, Duke Energy could be a top stock to add to your portfolio for the long term.