Investors love dividend stocks, especially high-yielding varieties, because they offer a strong income stream and have high total return potential. Total return includes interest, capital gains, dividends and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and appreciation of the stock. Let’s take a closer look at the concept of total return. Imagine you buy a stock for $20 that offers a 3% dividend. If the stock price rises to $22 over the next year, the total return will be 13%. This is calculated by adding 10% share price appreciation to the 3% dividend.
Started a long time ago the sale is likely to happen next year. While this doesn’t necessarily indicate a market crash, it could mean a quick 10%, 15% or even 20% drop into bear market territory, as we saw earlier this year. We looked for ideas that could best resist a quick sell-off, and a group commonly referred to as “sin stocks” could be just the ticket for concerned investors.
One category There are so-called sin stocks on Wall Street that some portfolio managers don’t want to discuss in their portfolios. These include tobacco and alcohol companies, gambling casinos, sex industries, gun manufacturers, and now even marijuana manufacturers. While they don’t all seem sinful, some money management firms, like some investors, refuse to own them.
We checked ours 24/7 Wall St. sin-stock research database and found five companies that pay solid, high-yielding dividends and look like great growth ideas, even as income investors worry that we may be on the verge of a big selloff. All rated “Buy” on Wall Street’s top companies.
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Dividend shares provide investors with reliable passive income streams. Passive income is characterized by the ability to generate income without the constant active effort of the income earner, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Altria Group Inc. (NYSE: MO) is one of the world’s largest manufacturers and sellers of cigarettes and other tobacco-related products. This stock offers value investors a compelling entry point and a generous 6.40% dividend yield. Altria manufactures and markets smoking and oral tobacco products in the United States.
Companies the dividend payout is based on free cash flow, which ranges from approximately 64% to 80% per quarter. Free cash flow has exceeded dividend payments in recent quarters, providing a solid buffer. Altria generates strong cash flow from its core tobacco business, which provides a stable base, albeit one with regulatory risk, and yields among the highest in the S&P 500, at least for now.
Company primarily sells cigarettes under the Marlboro brand, as well as:
Cigars and pipe tobacco, mainly under the Black & Mild and Middleton brands
Wet smokeless tobacco and snus products with Copenhagen, Skoal, Red Seal and Husky brands
on! Oral nicotine pouches
e-vapor products with the NJOY ACE brand
He is selling his tobacco products primarily to wholesalers, including distributors and large retail organizations such as chain stores.
Altria used own more than 10% of the world’s largest brewer Anheuser-Busch InBev SA (NYSE: BUD ). Last year, the company sold 35 million from 197 million shares through a global secondary offering. That’s 18% of its holdings, but still leaves 8% of its shares outstanding in its back pocket. Altria also announced a $2.4 billion stock buyback plan, partially funded by the sale.
Goldman Sachs has a Buy rating with $72 price target.
This American the aerospace and defense manufacturer has global interests. This is one of the most popular aerospace and defense stocks. It is nearing a major breakout and pays a solid 2.71% dividend. Lockheed Martin Corp. (NYSE: LMT) researches, designs, develops, manufactures, integrates, operates and supports advanced technology systems, products and services.
Company operates in five main business segments:
Aeronautics
Missile and fire control
Mission systems and training
Space systems
Information systems and global solutions
Also provided a wide range of defense electronics products and IT services.
Like the Pentagon Prime contractor Lockheed Martin plays a critical role in national defense by offering a diverse portfolio of global aerospace, defense, security and advanced technologies. Its weighted presence in Army, Air Force, Navy and IT programs ensures a steady flow of follow-up orders from the US government and many foreign allies.
Morgan Stanley has an Overweight rating with a $630 price target.
This British multinational spirits company is headquartered in London. Diageo PLC (NYSE: DEO ) is one of the world’s largest spirits producers and pays a solid 4.40 percent. dividends. The company manufactures, markets and sells alcoholic beverages worldwide, including:
Scotch whisky, gin, vodka, rum, beer and spirits
irish cream liqueurs,
Wine, Raki, tequila, Canadian and American whiskey
Cachaça and brandy, as well as adult beverages and ready-to-drink products
Companies premium brands include Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray and Guinness. Its stock brands include:
Johnnie Walker Blue Label
Johnnie Walker Green Label
Johnnie Walker Gold Label 18 Years
Johnnie Walker Gold Label Reserve
Johnnie Walker Platinum Label 18 years
Collection of John Walker & Sons
Johnnie Walker’s Golden Road.
Johnnie Walker The Royal Road
Johnny Walker Super Premium brands include The Singleton, Cardhu, Talisker, Lagavulin and other malt brands.
Bank of America has a Buy rating with a $109 price target.
Molson Coors Brewing Co. (NYSE: TAP) was founded in 2005. the merger of Molson of Canada and Coors of the United States. Although the iconic American beer company merged with the Canadian beer giant, it is still based in Chicago, with main offices in Gold, Colorado and Montreal. It pays an excellent dividend of 4.02%. Molson Coors produces, markets and sells beer and other malt beverages under various brands in the Americas, Europe, the Middle East, Africa and the Asia Pacific.
Company offers flavored malt beverages including hard seltzers, hand-held spirits, energy drinks and ready-to-drink beverages. It supplies its products under the following brands:
Aspall cider
Blue moon
Coors Original
The path of five
Hop Valley Brands
of Leinenkugel
Mothers
Miller is a true draft pick
Molson Ultra
Sharp’s
An old source
Vizzy Hard Seltzer
Premium brands includes Bergenbier, Borsodi, Carling, Coors Banquet, Coors Light, Jelen, Kamenitza, Miller Lite, Molson Canadian, Niksicko and Ozujsko.
Company also carries economy brands Branik, Icehouse, Keystone, Miller High Life, Milwaukee’s Best and Steel Reserve.
Its strategic the response to Bud Light’s marketing blunders a few years ago that led to new customers is a testament to its agility. In addition, the company is exploring new opportunities, such as the possibility of bringing a cannabis-infused product to market.
Goldman Sachs has a Buy rating with a $57 price target.
This is New York The city-based real estate investment trust (REIT) specializes in casinos and entertainment properties. It’s one of Wall Street’s top picks in the net rent group and is ideal for more conservative investors looking for a gamble and a solid 5.59% dividend. VICI Properties Inc. (NYSE: VICI ) is an S&P 500 experiential REIT with one of the largest portfolios of market-leading gaming, hospitality and entertainment venues, including three iconic entertainment venues on the Las Vegas Strip:
VICI features owns 93 experiential properties from a geographically diverse 54 gaming properties and 39 other experiential properties in the United States and Canada. The portfolio comprises approximately 127 million square feet and includes approximately 60,300 hotel rooms and more than 500 restaurants, bars, nightclubs and sportsbooks.
Its properties are occupied by industry-leading gaming, leisure and hospitality operators on long-term, triple-net leases.
VICI features has a growing number of real estate and financing partnerships with leading operators in other experiential sectors, including:
Bowler
Cabot
Canyon Ranch
Chelsea Piers
Great wolf resorts
Home field
Kalahari resorts
VICI features also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.
JP Morgan has an Overweight rating with a $38 price target.
As the Dow hit a record high, high-yielding Dow dogs are still cheap
