While eagerly awaiting a Fed rate cut, we were surprised with a hotter-than-expected inflation report. This means the rate cuts could be delayed, and we might have to wait a few more months before an improvement in consumer spending. In times like these, investing is risky, but that doesn’t mean you should stay away from the stock market completely. The market hit a high note in early 2024, with the Nasdaq hitting all-time highs, but the recent developments have impacted all industries. This is when you need to look for safe, resilient and reliable stocks. With the right dividend stocks, you can keep your money safe, enjoy passive income and watch your investments grow.
If you are looking for dividend stocks, you can put $10,000 in these three companies and watch them grow over the next five years. These investments will keep rewarding you each quarter, and your returns will grow each year.
Visa (V)
Global fintech giant Visa (NYSE:V) is one of the best dividend stocks to own right now. A dominant player in the industry, Visa caters to more than 100 million merchants and facilitates transactions worth trillions each year.
The company managed to report impressive numbers despite high inflation. Visa is a part of Warren Buffet’s portfolio and the gradual shift toward digital payments will benefit the business. It charges a fee for every transaction made using the card, and unsurprisingly, this business model has achieved tremendous success.
Trading at $271, the stock is up 16% in the year, and it enjoys a dividend yield of 0.77%. While the dividend yield is lower than many other industry stalwarts, Visa is a very stable and resilient business in which to invest. Its first-quarter results impressed investors, and it showed significant growth in the payments volume. An improvement in consumer spending will lead to higher revenue for Visa.
The company ended the year with $21.4 billion in cash and has enough liquidity to keep rewarding shareholders. Besides the steady income, you will enjoy capital gains as the stock soars. It has raised dividends for the past 15 years and has a dividend payout ratio of 21%. The adoption of credit cards will only increase in the coming years, which means higher revenue and transaction volume growth for Visa.
TD Cowen analyst has a price target of $320 for the stock.
Johnson & Johnson (JNJ)
A dividend aristocrat, Johnson & Johnson (NYSE:JNJ), can survive any market turmoil and still stand strong. Having successfully spun off the slow-performing consumer products division Kenvue (NYSE:KVUE), Johnson & Johnson will now concentrate on the growth of its healthcare business. This will be reflected in the revenue numbers for the coming quarters.
The company has been paying dividends since 1944 and has increased the payout for 61 consecutive years. Besides being a highly reliable dividend stock, JNJ will also generate capital gains for you. Trading at $147 today, the stock is down 7% year-to-date, and any dip is a chance to buy. It enjoys a dividend yield of 3.23%, and as the business continues to grow, we can see the yield improve.
The pharmaceutical giant holds an enviable position in the industry and has a portfolio of billion-dollar treatments. It has 25 new and upcoming drugs, driving 5% to 7% sales growth between 2025 and 2030.
Johnson & Johnson has just announced the first-quarter results and reported sales of $21.4 billion. It saw a 12.4% increase in the adjusted EPS, now at $2.71. The company has also increased the guidance for 2024 and now expects sales in the range of $88 billion to $88.4 billion and an adjusted EPS between $10.60 and $10.75 per share.
Investors should consider JNJ stock a long-term buy and enjoy passive income over the years.
Chevron (CVX)
Chevron (NYSE:CVX) is one of the best dividend stocks to own amid soaring crude oil prices. Another of Warren Buffet’s favorites, the company has a dividend yield of 4.14% with a lot working in its favor. Chevron will report strong financial numbers, with oil trading over $84 per barrel. It has the potential to sustain the dividends even if oil prices fall.
The company is an industry leader waiting to complete the acquisition of Hess (NYSE:HES) to access the Guyana market. CVX stock is trading for $157 today, up 5% YTD but down from the all-time high of $186 it achieved in 2022.
Having paid dividends for over two decades, Chevron is a dividend aristocrat with enough cash to keep rewarding shareholders. It is a cash flow machine that is set to benefit from the soaring oil prices.
When dealing with uncertainty, Chevron enjoys more financial leeway than its competitors, and it has enough reserves to keep going. Yes, the company depends on oil prices, but we are all aware that the demand will not drop anytime soon. It is a well-positioned company with solid financials to add to your portfolio.
Scotiabank analysts have a Sector Outperform rating for the stock with a price target of $195. Chevron is set to announce results on April 26, and we could see a dividend hike then.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.