Are These The Best Dividend Stocks To Help You Build Retirement Wealth?
There’s no question that we all need income to live on, and that’s where dividend stocks come into the picture. And the great news here is, you don’t need to have a lot of money to begin investing in the stock market. If you don’t believe me, just look at Warren Buffett. The Oracle of Omaha certainly didn’t start with a lot of money.
Of course, if there’s one thing investors want, it’s top dividend stocks that can produce a steady income stream that can sustain them throughout their life. But that’s usually not quite possible unless you are investing in the millions. However, if you are looking to buy a dividend stock that could sustain your retirement life now, or if you are simply planning a few decades ahead, here are some of the best dividend stocks to buy in the stock market today.
Top Dividend Stocks For Your June Watchlist
- Innovative Industrial Properties Inc. (NYSE: IIPR)
- Realty Income Corporation (NYSE: O)
- Lumen Technologies (NYSE: LUMN)
- Coca-Cola Co. (NYSE: KO)
- Abbvie Inc. (NYSE: ABBV)
- Chevron Corporation (NYSE: CVX)
Innovative Industrial Properties
First up, we have Innovative Industrial Properties Inc. (IIPR). Here, we are looking at a leading pick-and-shovel play on the U.S. marijuana industry. The real estate investment trust (REIT) focuses on the medical cannabis industry.
The REIT reported strong-first quarter 2021 results earlier in May. In it, revenue and operating income came in 103% and 125% higher respectively year-over-year.
Few companies are going to give you the kind of growth that IIPR offers. At the pace that the company is snapping up more properties and leasing them to the medical cannabis operators, don’t be surprised if IIPR could double its number of properties within the next five years. Sure, its dividend yield of around 2.9% isn’t exactly exciting. But that’s because IIPR stock price has skyrocketed at a faster pace, keeping its dividend yield from rising.
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Realty Income
No list of top dividend stocks is complete without Realty Income. While several REITs pay monthly dividends, this company’s monthly payout is a crucial part of its identity. In fact, the company actually trademarked “The Monthly Dividend Company” as its official nickname. Look no further if you want a safe and consistent payout for your portfolio. The REIT even boasts on its homepage its 609 consecutive monthly dividends paid and 4.4% annualized dividend growth since 1994.
What’s making Realty Income a compelling investment is its portfolio of strong clientele. After all, it has top tenants like Walmart (NYSE: WMT) and Dollar General (NYSE: DG). And these tenants should continue to do well and bring in a stable revenue stream for the company.
Considering the fact that the economy is slowly reopening, Realty Income’s most affected tenants such as cinema operators and gyms should enjoy a nice recovery. Thus, would you add O stock to your portfolio?
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Lumen Technologies
If you’re looking for a company with a fat dividend yield, you might want to consider Lumen Technologies. Previously known as CenturyLink, Lumen Technologies is a telecommunications company that pays a big dividend yield. As it stands, the company has a dividend yield of more than 7%. The company has been struggling with its legacy internet landline services.
As a result, this has prompted Lumen to invest in high-performance fiber-optics networks. And the great news is that the new investment is generating strong cash flows. Following this momentum, there’s a chance that margins could significantly improve as the company continues its pivot to fiber and enterprise services.
Also, Lumen Technologies hosted an Analyst Day presentation, where it showcased exciting company developments to shareholders. From the presentation, the company highlighted partnerships with VMWare (NYSE: VMW), IBM Cloud (NYSE: IBM), and T-Mobile (NASDAQ: TMUS). Admittedly, no one can be sure what the future holds for the company with these strings of partnerships. But things certainly could play out well if Lumen hits off with one of these partners. If you believe that the company could bump up its revenue growth through these partnerships, would you include LUMN stock on your watchlist today?
Coca-Cola
Coca-Cola is a multinational beverage corporation that operates a franchised distribution system. Its products are sold in more than 200 countries and territories. Also, the company’s portfolio of brands includes Coca-Cola, Sprite, Dasani, and Minute Maid among others. Coca-Cola is also a dividend company that paid $7 billion to shareowners in 2020 alone.
The beverage giant is also Berkshire Hathaway’s (NYSE: BRK.A) longest-tenured holding. It also makes up a significant portion of Buffett’s annual dividend income. As it stands, Coca-Cola has a dividend yield of around 3%.
From its first-quarter report, net revenue came in 5% higher year-over-year to $9 billion. The company also posted an earnings per share of $0.52. Coca-Cola also ended the quarter with $1.4 billion in cash. In addition, it also cited that volume trends are steadily improving each month throughout the quarter. This would be driven by a recovery in markets where coronavirus-related uncertainty has abated. March volume for instance has already reached 2019 levels. With signs of improvement already beginning to surface, will you add KO stock into your portfolio?
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AbbVie
Another top dividend-paying company to know now would be AbbVie Inc. In brief, AbbVie is a leading name in the field of biotech today. The research-based pharmaceutical company boasts a wide healthcare portfolio, tackling the world’s most prominent illnesses. According to AbbVie, more than 52 million patients in over 175 countries rely on its treatments annually. AbbVie’s dividend yield currently stands at around 4.7%.
From its first quarterly report, total revenue for the quarter came in 50.95% higher year-over-year, adding up to over $13 billion. This was followed by a sizable 18% bump in net income over the same time.
On top of that, AbbVie also ended the quarter with over $9.7 billion in cash on hand. The bullish thesis for the company is based on the prospects for several drugs under its belt. In particular, the company is counting on its autoimmune disease drugs for tremendous growth. With AbbVie seemingly firing on all cylinders, is ABBV stock worth investing in now?
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Chevron
Chevron Corporation is one of the leading integrated oil and gas companies in the United States. Many investors, including Warren Buffett, love CVX stock because it has a strong balance sheet and good growth prospects. After all, we are talking about a company with a history of 140 years. And more importantly, it has an attractive dividend yield of around 5%. Sure, oil and gas stocks ain’t exactly the best investment in the stock market right now. But the company is keeping up with the times through its initiatives in hydrogen to support the green economy.
Of course, fossil fuels will almost certainly be increasingly replaced by renewable energy sources over the long run. Such remarks appear to give the notion that the best days of the oil and gas industry are behind us. But what they didn’t know is, the next big energy transition can’t happen without fossil fuels.
Even the electric vehicle boom we see in the stock market today is dependent on fossil fuels. Why? Because nearly half of the materials are made up of plastics from the petrochemicals industry. Considering the importance of oil in the foreseeable future, would you say that CVX stock is still a good dividend stock to buy now?
