We remain in a directionless market. And that’s why dividend stocks are your best choice right now.
And by dividend stocks, I don’t mean stocks with huge dividends. I mean stocks that have the ability to grow in any market and deliver a solid, reliable dividend that you can reinvest in more stock (in many cases), accumulate for new share purchases or use as income.
These are really what investing insiders call total return stocks. They provide solid income and capital gains growth. And the combination can be very beneficial, especially in rudderless markets like the one we’re in.
What’s more, even when the economy starts to head in a clearer direction, these stocks will shine since economic growth powers their growth as it has for decades.
And in down markets, these are the rock-solid stocks that smart investors turn to as uncertainty rises and investors get serious about reliable dividends, earnings and revenue.
| ABBV | AbbVie Inc. | $144.10 |
| AMGN | Amgen Inc. | $240.92 |
| BAC | Bank of America Corporation | $33.39 |
| CMCSA | Comcast Corporation | $41.88 |
| INTC | Intel Corporation | $39.38 |
| UPS | United Parcel Service, Inc. | $174.38 |
| PLD | Prologis, Inc. | $118.18 |
Dividend Stocks for Your Grandkids: AbbVie (ABBV)
When you own the patent to the soon-to-be best-selling prescription drug of all time, that’s a good base to build from.
Humira is presently the number two best-selling prescription drug of all time, but by 2024, it will take the title. The number one drug now is the statin Lipitor. And its reign is also significant because it has had significant challenges to its market share due to generic competition, but still remains a blockbuster.
That could well be the case for Humira when it comes off patent, although AbbVie (NYSE:ABBV) will likely kick that can down the road as far as possible. Plus, it has so many different uses at this point, the patent cliff is being reduced to a set of cascades.
Also, ABBV isn’t just a one-hit wonder. It has a huge drug portfolio and one of the best pipelines in the business. Plus, it’s one of the most generous dividend stocks on the list, delivering a 3.8% dividend. And ABBV stock has gained 6% year-to-date (YTD), so it’s far outperforming the major averages.
This stock has an A rating in my Dividend Grader.
Amgen (AMGN)
Amgen (NASDAQ:AMGN) is 42 years old. That means when it started out as a biotech, it was in a very small crowd. Remember, biotech was a shadow of what it is today compared to then.
That didn’t stop AMGN from building an impressive array of drugs and a similarly impressive product pipeline.
For much of AMGN’s life it, hasn’t been about hitting homers – i.e., producing blockbusters – as it has been about getting on base. And its drug portfolio shows that adding to those hits year after year really pays off.
Speaking of payoff, AMGN has a nearly 3.2% dividend and the stock has gained just under 7% YTD. This legacy biotech is well positioned to thrive for another four decades.
This stock has an A rating in my Dividend Grader.
Dividend Stocks for Your Grandkids: Bank of America (BAC)
Bank of America (NYSE:BAC) is the second largest bank in the U.S. with more than 66 million customers. It’s also the ninth largest bank in the world.
Ironically, BAC started in San Francisco in 1904 as the Bank of Italy. After a number of mergers on the East Coast and West, it was officially named Bank of America in 1930.
Most of its size has come by acquisition over the past nine decades, but it remains the West Coast bookend to East Coast powerhouse JPMorgan Chase (NYSE:JPM), although admittedly BAC is currently headquartered in North Carolina. But the core of its organic growth has historically been in the west until more recent decades.
And it has always been an innovator. It was one of the first banks to accept the credit card concept, BankAmericard, in 1958, which went on to become Visa (NYSE:V). It has been through a lot in nearly a century of operation and the fact that it has become such a powerful domestic and global player is testament to its management, innovation and durability.
The stock has lost 25% YTD, but that shouldn’t be a long-term issue. Consider this a discount. BAC also has a 2.3% dividend that is about as reliable as they come. This is a good entry point for long-term total return investors.
This stock has an A rating in my Dividend Grader.
Comcast (CMCSA)
Usually when you hear stories about Comcast (NASDAQ:CMCSA) it’s usually some biting comment about its customer service or subscription pricing. But the fact is Comcast has become a major telecom, entertainment and content player in the U.S., Asia and Europe.
That means for a great deal of people it’s the only game in town. And for investors, that’s a very exciting prospect because it means one important thing: pricing power. CMCSA owns Xfinity cable and streaming services, NBC and Telemundo broadcast companies. It also owns Universal theme parks around the globe, as well as Europe’s Sky network that has huge sports and news penetration.
That’s quite an empire. And it has been around since 1963, so it has built its position over decades, in good and bad times. For shareholders, this is reassuring, especially if you’re building a portfolio of dependable dividend stocks for the long term.
CMCSA stock has lost almost 17% year to date, and it has a 2.6% dividend.
This stock has an A rating in my Dividend Grader.
Dividend Stocks for Your Grandkids: Intel (INTC)
If you’re one of the leading tech stocks in the world right now, you can expect the market to be looking at everything you say with a jaundiced eye. That’s just the way it is when the market goes from risk-on to risk-off investing and there’s so much happening in the global economy.
That has certainly been true of Intel (NASDAQ:INTC), the world’s largest computer chipmaker.
Although the company warned that the first two quarters of this year were going to be dicey, it seems no one really believed them until the reality hit in early June. That has sent the stock down and now INTC has lost almost 24% YTD.
But when you’re as big as INTC, quarterly numbers get a bit blurry since you’re much more focused on efforts that take years to unfold rather than weeks. For example, its $20 billion commitment to Ohio for two state-of-the-art chip foundries that should be up and running by 2025. That is how you avoid supply chain issues and other problems when you’re a global presence.
INTC has a 3.5% dividend and the stock is cheap. As the supply chain issues moderate, the coming quarters should see INTC rebound quickly.
This stock has an A rating in my Dividend Grader.
United Parcel Service (UPS)
Stuff. We all have it and post-pandemic we may have a lot more. Part of this accumulation is part of our need to manage the explosion in e-commerce.
Marketers have long understood that our First-World desires for immediate gratification have become more immediate as logistics companies have transitioned from next-day shipping to same-day shipping, to getting our items within hours of purchase.
Granted, the supply chain issues we’ve been stuck in for months now is boosting immediate gratification withdrawal, but it won’t last long. We’re too accustomed to the buy-it-get-it mentality.
That’s great news for United Parcel Service (NYSE:UPS), the oldest and one of the biggest logistics and delivery companies in the US, and now beyond. It has been building its network and reputation since 1907, and has adapted to every new technological advance – and competition – across the decades.
Its reliability and leadership earns it a listing among these dividend stocks, as well as its nearly 3.4% dividend. UPS stock is down almost 16% year to date, but that’s understandable given the global supply chain mess. But this is a proven long-term winner, so its current troubles are your opportunity.
This stock has an A rating in my Dividend Grader.
Dividend Stocks for Your Grandkids: Prologis (PLD)
The one thing that makes just-in-time-inventory and fast turnaround product fulfillment crucial is a well-integrated network of warehouses and distribution centers.
Prologis (NYSE:PLD) is one of the world’s biggest and best REITs focused specifically on this sector. From major ports around the world to last-mile facilities, PLD builds, owns and manages these properties for companies all around the world. Anywhere that manufactures goods and needs to move them along the supply chain is likely to use a PLD facility along its journey.
There may be a rethinking of some companies’ supply chain strategies, but the world is too connected for this to be the beginning of the end of global commerce. Quite the contrary, this is just the beginning. And PLD will be at the forefront of this massive trend for years to come.
PLD stock has lost about 30% year to date, but it was also running very hot for quite a while, so this isn’t worrying. It has pricing power in this market, which should see it recover quickly. Its 2.5% dividend will buy some patience.
This stock has an A rating in my Dividend Grader.
On the date of publication, Louis Navellier had long position(s) in ABBV, AMGN, BAC and CMCSA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.