Dividend stocks for the Long term with growth potential are the best match for income investors. Companies with stocks that distribute a portion of their earnings to investors on a regular basis are dividend stocks. Most companies pay dividends to the shareholders each quarter. The top dividend stocks with growth keep on increasing their payouts with time. The best dividend stocks for the long term keep the investors satisfied and help them build an annuity-like cash stream.
To choose a dividend stock, you analyze the historical trends and then you find the best dividend stocks for the long term that will be beneficial for you– even when the economy turns south. These companies usually are well established, with stable earnings and a lasting track record of dividend payouts.
Dividend stocks are always in the investing circuit and the demand for buying new dividend stocks is high.
We bring you the best dividend stocks for the long term that will help you grow your income stream and increase your wealth over time.
Walgreens Boots Alliance
Walgreens Boots Alliance (WBA) operates as a pharmacy-led health and beauty retail company. WBA has been benefiting from a surge in COVID-19 traffic to its stores this year. And with booster shots on the way, it’s a trend that may not be slowing down just yet.
It is also providing Pfizer vaccines to children aged between 5 years to 11 years. While booster doses of Moderna and J&J vaccines are available on Walgreens stores.
The company updated its fourth quarter 2021 outcomes, surpassing the earnings estimate of $1.02 per share. While Walgreens reported adjusted earnings per share of $1.17. The revenues were just ahead of the estimates as well, recording $34 billion compared to analyst projections of $33 billion.
A big reason for the surprising performance was that Walgreens said it administered twice the number of vaccines it thought it would. If investors think there will be a slowdown to that trend in the coming quarters, this is still a great time to invest in WBA stock.
Walgreens announced an increase to its dividend in July for the 46th year in a row. The stock is nearing becoming a Dividend King. Just four more increments and it’s there, at the very top of dividend stocks with growth. WBA’s current dividend yield is 3.88% with an annual dividend of $1.91 per share. That’s 83% of the $2.30 earning per share Walgreens reported for fiscal 2021.
It seems to be in the perfect position to continue its dividend payouts. It’s still a sustainable payout, especially if the expansion opportunities with VillageMD pay off. Moreover, as things stand, the stock could rise in the future and make it the best dividend stock for the long term.
AT&T Inc.
AT&T (T) is a renowned telecommunication and media company. AT&T’s current yield of 8.2% definitely looks too good to be true. Let’s get into what’s happening with AT&T.
It is soon going to split off from WarnerMedia, which will be joining media company Discovery. After the split, the company’s dividend policy will change. Investors might think this could affect the dividend stock.
Once the deal is complete, AT&T says it will “re-size” its dividend to a sustainable 40% to 43% of free cash flow. How that will shape out is a bit of a question mark. But historically, AT&T has usually been able to pay a high yield with its payouts sitting comfortably above 4% in each of the past five years.
Even though the payout will likely end up smaller in the future, AT&T looks to be a safe bet to continue providing its shareholders with an above-average payout. Especially in light of an encouraging performance this past quarter.
AT&T delivered strong growth in the third quarter of 2021. The company is the best post-paid phone net add quarter in more than 10 years. That improved from 789,000 post-paid phone net adds to 928,000 net adds from the previous quarter.
It is doing pretty well and is in a good position to hold up with its dividend payouts going forward. While, T stock is also trading around 52-week lows, putting in an upside position. While looking at its financial position it would be worth it to be included in the list of best dividend stock for the long term.
ONEOK Inc.
ONEOK Inc., (OKE) is a leading natural gas supplier in the United States. The company operates via its subsidiaries in the country. For investing in a dividend stock, there are a few factors to examine. Firstly, how consistent the company has dividend payout history? Does the company increase its dividend yield? And the last one is the financial performance of the company.
It fulfills are the three requirements. Let’s break into that.
The company surpassed the third quarter 2021 earnings mark and revenue estimates. OKE stock looks perfect as a dividend stock. ONEOK posted $0.88 per share in the third quarter, surpassing the Zacks Consensus Estimate of $0.83 per share by 6%. Also, the bottom line improved 25.7% year over year.
As we know that the energy demand is rising and we can clearly see the pandemic impacts on energy supply. While improving economic conditions led to an increase in volumes of natural gas and natural gas liquids. That has helped OKE improve its quarterly results.
Looking at the dividend yield of 5.78%, OKE stands at a $3.74 annual dividend at the moment. If we look at OKE’s dividend payout pattern since 2011, ONEOK has increased its quarterly dividends nearly 20 times. The company last increased the dividend in the first quarter of 2020. The trend shows that the dividend yield might increase anytime soon. So if anyone is looking for a stable and growing stock for the long term, OKE is one of the best dividend stocks for the long term, they can invest in it.
Moreover, with strong quarterly performances, OKE stock will continue to increase the wealth of its investors and offer dividends.
Iron Mountain Incorporated
Iron Mountain (IRM) is the global leader for storage and information management services. The company has a real estate network of more than 90 million square feet across 50 countries. The metrics we mentioned for ONEOK stock, IRM fulfills all three with good financial performance and being consistent in dividend payouts.
In the recent quarter, Iron Mountain achieved higher growth than expected. During the third quarter of 2021, IRM reported adjusted funds from operations of $0.72 per share. Surpassing the Zacks Consensus Estimate of $0.70. That is 14.3% higher than the year-ago quarter’s $0.63.
Iron Mountain’s revenue growth during the quarter was over 9%. The total revenues were $1.13 billion, just missing the Zacks Consensus Estimate by 0.13%.
IRM has a dividend yield of 5.19% and pays an annual dividend of $2.47 per share. On Nov 4, Iron Mountain announced its fourth-quarter common stock cash dividend of 61.85 cents per share.
IRM is doing pretty on all fronts and that has been the reason for improved financial outcomes. A large firm like IRM is always a reliable dividend stock.
Exxon Mobil Corporation
Exxon Mobil (XOM) is a deity in the oil market. It operates globally and explores for and produces crude oil and natural gas. The company is also involved in other various products from the petroleum sector. Being a giant in the industry, it is great to have XOM as a dividend stock.
XOM has a current dividend yield of 5.41%. That is almost a $3.52 annual dividend on each unit of common stock share.
XOM stock has been on a ride recently as we see high demand in the market for oil. The rising demand for oil across the world has helped XOM shares burst in recent days. The stock is trading around its 52-week high. That means it’s not a good time to buy. Well, that doesn’t mean it’s not a good dividend stock. Just wait for the right moment when the stock is in the buying zone.
The demand for oil doesn’t seem to slow down anytime soon and we can see XOM in a really good position securing a larger market share. That will ultimately boost its sales.
Exxon is a solid company on the financial side as well. XOM has a good dividend yield and has a lasting history of continuous dividend payouts. Exxon has released its latest quarterly dividends on Nov. 10, 2021, and paid off in Dec 2021. The company has announced a dividend of $0.88 per common stock.