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What is dividend;
The dividend is a share of a company's profit that it chooses to return to its shareholders. It is one of the ways that a shareholder can make money from an investment without having to sell shares.
How do dividends work?
Dividends are paid based on the number of shares an investor owns and can be paid monthly, quarterly, semi-annually or annually. For example, if the dividend is 50 cents a year and you own 100 shares, you will receive €50 that year, however dividends are a slow but steady way of investing that in a few years depending on the investment of course you will have made a strong portfolio that will earn you passive income.
So today we are going to look at 7 very strong stocks that we can invest in and get passive income from dividends.
Dividends & investment from Newmont Corporation (NEM)
Newmont Mining (NYSE: NEM ) ranks among the top dividend stocks to buy as the company stands to benefit from higher gold prices.
Newmont Corporation is an American gold mining company headquartered in Greenwood Village, Colorado. It is the largest gold mining company in the world. Newmont has an investment-grade balance sheet, and that's a key reason to like the stock. The company is able to provide strong cash flow and I expect dividend growth. Currently, NEM stock is yielding 4,1%.
Dividends & investment from AstraZeneca (AZN)
AstraZeneca plc is a British-Swedish multinational pharmaceutical and biotechnology company. The headquarters of the company is located in the Department of Biomedicine of the University of Cambridge, England. AstraZeneca (NASDAQ: AZN ) is another attractive dividend stock to buy. AZN stock offers a dividend yield 1,4% and there is clear visibility for dividend growth in the coming years. Over the past 12 months, AZN stock has also shown an upward trend of 14,5%.
Another point to note is that the company focuses on a variety of treatment areas. This includes oncology, biopharmaceuticals and rare diseases. With a broad addressable market and global presence, growth prospects are positive and over the past 12 months, AstraZeneca reported operating cash flow of $7,4 billion.
Dividends & investment from Lockheed Martin (LMT)
Lockheed Martin (NYSE: LMT ) is an attractive dividend stock to buy. LMT stock offers a current dividend yield 2,67% and my personal opinion is that I see visibility for a dividend increase.
Global defense spending is likely to remain high, and Lockheed stands to benefit. The company has already seen strong order intake. As of Q4 2022, Lockheed reported a high order backlog 150 billion dollars . On an annual basis, the backlog increased by 11%.
Dividends & investment from Chevron Corporation (CVX)
Chevron is one of the largest companies in the world and the second largest oil company based in the United States by revenue. Chevron ranked 16th on the Fortune 500 in 2022 with revenue of US$162,5 billion, which also ranked it 37th on the Fortune Global 500.
Even with recession worries, oil has held steady around $80 a barrel and the dividend yield is at 3,14%.
To put things in perspective, Chevron reported operating cash flow of $13,7 billion for the third quarter of 2022. Annual potential OCF is $40 billion.
Dividends & investment from VALE
Vale SA, formerly Companhia Vale do Rio Doce is a Brazilian multinational metals and mining company and one of the largest logistics companies in Brazil. Vale is the world's largest producer of iron ore and nickel.
In VALE stock there is a strong possibility of stimulus measures in the coming quarters. This will be positive for commodity prices. Iron ore is already trending higher and that explains the rally in VALE stock. Furthermore, the dividend yield is attractive at 7,9% and I expect dividends to be maintained.
Dividends & investment from AT&T (T)
AT&T Inc. is an American multinational holding company headquartered in Whiteacre Tower in central Dallas, Texas. It is the largest telecommunication company and the largest provider of mobile telecommunication services.
AT&T recently reported strong quarterly numbers, and there are quite a few positives. First, the company reduced net debt by $24 billion last year. Deleveraging is likely to continue and as credit metrics improve the stock will rise, the stock also offers a dividend yield 5,79%..
Dividends & Investment from Walmart (WMT)
Walmart Inc. is an American multinational retail company that operates a chain of hypermarkets, discount department stores and grocery stores from the United States, headquartered in Bentonville, Arkansas.
Even with the challenges related to inflation, Walmart has reported good numbers. The company returned $13,3 billion to shareholders in the first nine months of 2022.
In international markets, Walmart reported revenue growth of 7,1% for the third quarter of 2023. In the coming years, international market growth is likely to remain strong. The reason is Walmart's growing presence in China and India. Also, the stock currently offers a dividend yield 1,57%.
???? *All investments have risk Everything said in this article is my opinion and always do your research. ????