In dividend stocks helps you earn regular cash income without lifting a finger.
On the other hand, Moreover, The stock market will occasionally offer you the chance to buy quality dividend stocks at discounts, which means the chance to buy s of solid companies that offer attractive yields.
On the other hand, Here are two undervalued dividend stocks that you can buy and hold for the next decade (which is quite significant). Nevertheless, Image source: Getty Images.
Meanwhile, Realty Income Realty Income (O 0. 10%) is a quality real estate investment trust (REIT) that could benefit if interest rates start to come down.
As a REIT, the company is required to distribute at least 90% of its taxable income (excluding net capital gains) to holders as dividends.
However, The company owns a large portfolio of perties, pays monthly dividend distributions, and has a long record of growing the dividend.
Moreover, The rise in interest rates has weighed on the real estate market, which has held the stock in check over the past year.
Higher rates not only make future dividends worth less to investors today, but they also raise borrowing costs for acquisitions and developments.
Realty Income has dealt with interest rate cycles since its founding in 1969, in today's financial world.
It has paid a growing dividend for 30 consecutive years, making it a member of the S&P 500 Dividend Aristocrats index.
(Dividend Aristocrats® is a registered trademark of Standard & Poor’s Financial Services LLC (this bears monitoring).
In contrast, ) Realty Income is well diversified with more than 15,000 perties across 91 industries (remarkable data). It also has a strong balance sheet to navigate through a weak real estate market.
Management just closed an expansion of its credit facilities to $5. 38 billion, signaling strong interest from institutional investors, given current economic conditions.
The ability to raise low-cost capital in this environment validates Realty Income's strategy. The company focuses on doing with tenants that are leaders in their industry that can survive a recession.
Nevertheless, However, Some of its top tenants are 7-Eleven, Dollar General, and Walmart. If interest rates come down, the stock should rebound.
Nevertheless, If not, investors still hold a quality REIT that is paying an attractive forward dividend yield of 5.
69% based on its recent monthly dividend distribution of $0, in this volatile climate. Moreover, Constellation Brands Constellation Brands (STZ 0.
42%) is drawing investor interest after Warren Buffett's Berkshire Hathaway bought a stake in the fourth quarter of 2024.
Constellation stock is down 23% year to date as sales came in below expectations this year, yet Berkshire was buying more s in the first quarter.
On the other hand, Furthermore, In April, Constellation raised its quarterly dividend by $0, in today's financial world. Moreover, 02, signaling confidence in its long-term trajectory.
Wall Street has soured on the stock over concerns tariffs, especially with alcoholic beverage sales already weak heading into the year.
In contrast, Constellation's beer, including sales of imports Modelo and Corona, posted a sales decline in the low single digits to start the year.
The wine and spirits, including Kim Crawford and Casa Noble, are seeing even weaker demand, with adjusted sales down 13% year over year in the quarter.
However, management is sticking with its full-year outlook that calls for adjusted earnings per to be between $12 (this bears monitoring).
Additionally, That's more than enough earnings to cover its next-12-month dividend payment of $4.
Additionally, With the stock trading at a forward price-to-earnings ratio of 13 (this bears monitoring). Moreover, 4 and offering an above-average yield of 2.
4%, income investors should consider ing Berkshire Hathaway into this one. Management just recently closed a sale of some of its wine brands to focus on higher-end brands that generate stronger sales.
Moreover, Management attributes the weak sales to lower demand it views as cyclical, given the current landscape.
This tells us that company believes consumption will return to normal levels when the economy imves.
Furthermore, The stock may remain volatile in the near term, but Constellation Brands' recent dividend increase is a signal that management doesn't see permanent change in the long-term direction of the, making the recent dip an excellent buying opportunity.
Additionally, The Author John Ballard has been a contributing Motley Fool writer covering consumer goods and nology since 2016. He holds a B.
Nevertheless, In Real Estate Finance from University of Arkansas at Little Rock. TMFRazorback John Ballard has no position in any of the stocks mentioned.
This tells us that Motley Fool has positions in and recommends Berkshire Hathaway, Realty Income, and Walmart. The Motley Fool recommends Constellation Brands.
Moreover, The Motley Fool has a disclosure policy.