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Headlines
- Dividend stocks provide dependable income and contribute to solid total returns.
- Total return includes interest, capital gains, dividends, and distributions realized over time.
Quality companies with rising dividends are valuable additions to any portfolio.
Dividend stocks are favored for their dependable income and potential for solid total returns, which include interest, capital gains, dividends, and distributions realized over time. For example, if you buy a stock at $20 with a 3% dividend and its price rises to $22 within a year, your total return would be 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.
Holding quality companies that pay reliable, rising dividends is a timeless strategy. We screened our selection of blue-chip dividend stocks to find those paying at least a 5% dividend. Five top stocks stand out as excellent additions to any portfolio.
AT&T Inc. (NYSE:T)
AT&T, a legacy telecommunications company, has been undergoing restructuring, resulting in a dividend of 5.92%. AT&T provides global telecommunications, media, and technology services. The Communications segment offers wireless voice and data services and sells products through company-owned stores, agents, and third-party retailers. Products include handsets, wireless data cards, and accessories. Additional services include data, voice, security, cloud solutions, and managed services for various customers. AT&T also offers broadband fiber and voice communication services under brands like AT&T, Cricket, and AT&T Fiber.
BP PLC (NYSE BP)
BP, a premier European integrated oil giant, pays a substantial 5% dividend. The company operates in the energy sector worldwide, through segments such as Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft. BP engages in the production and trading of natural gas, offers biofuels, operates wind and solar power facilities, and provides de-carbonization solutions. Additionally, BP is involved in convenience and mobility businesses, managing fuel sales, convenience products, aviation fuels, and electric vehicle charging facilities.
Bristol-Myers Squibb Co. (NYSE:BMY)
This pharmaceutical giant offers a massive 5.84% dividend. Bristol-Myers Squibb discovers, develops, licenses, manufactures, and markets pharmaceutical products globally. The company’s product portfolio includes treatments for hematology, oncology, cardiovascular, and immunology. Key products include Revlimid, Opdivo, Eliquis, Orencia, Sprycel, Yervoy, Abraxane, and Reblozyl.
Comerica Inc. (NYSE:CMA)
Based in Dallas, Comerica pays a substantial 5.41% dividend. Comerica offers various financial products and services through its segments: Commercial Banking, Retail Banking, Wealth Management, and Finance. The Commercial Bank segment provides commercial loans, deposits, cash management, and more. The Retail Bank segment offers personal financial services, mortgage loans, and consumer products. The Wealth Management segment provides fiduciary, private banking, retirement, and investment services. Comerica operates in Texas, California, Michigan, Arizona, Florida, Canada, and Mexico.
Dominion Energy Inc. (NYSE:D)
Dominion Energy, operating through four segments, offers a 5.5% dividend. The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity. The Gas Distribution segment handles natural gas gathering, transportation, and distribution. Dominion Energy South Carolina generates and distributes electricity and natural gas. The company’s extensive portfolio includes significant electric generating capacity and extensive electric and gas distribution lines, serving approximately 7 million customers.
