Latest news with #S&P500DividendAristocrats
Yahoo
2 days ago
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Energy Dividend Aristocrats Shine Amid Market Uncertainty
With U.S. markets trading close to record highs, many investors are now turning to dividend-paying stocks as they try to balance growth and income. Dividend investing provides a predictable and reliable source of cash flow that can complement other forms of income. Dividend stocks can also help protect your portfolio when the stock market loses steam, with predictions of a market crash growing. Studies have shown that dividend-paying stocks tend to hold up much better during market downturns, with an interesting study finding that they declined by an average of 14.4% during major drawdowns over the past 50 years compared with a 28.2% crash by non-dividend-paying stocks and 19.9% by the S&P 500. The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) tracks the S&P 500 Dividend Aristocrats index composed of the companies that have grown their dividends for the last 25 consecutive years. Dividend aristocrats are generally considered to be high-quality businesses, a major attraction for long-term investing. After all, a company cannot consistently grow and pay out dividends for 25+ years without having a strong competitive advantage. Investing in dividend aristocrats helps investors avoid the so-called dividend traps wherein investors are attracted to potentially troubled companies by merely looking at their high yields. So far in 2025, energy-sector dividend aristocrats have shown a mixed performance compared to their counterparts in other industries. While mid-June's rally pushed WTI crude to about $77.6 per barrel (its highest level this year) prices have since retreated into the low $60s. Historically, the group's strong balance sheets and disciplined capital spending have allowed them to maintain and even grow dividends through commodity cycles, though they can lag more defensive sectors when crude prices weaken. This dynamic has kept the energy aristocrats in focus for income investors seeking yield with a measure of growth potential tied to the global energy market. Here are the leading dividend aristocrats in the oil and gas sector. #1. Exxon Mobil Forward Dividend Yield: 3.69% Sector: Energy Industry: Oil and Gas Integrated U.S. oil and gas giant, Exxon Mobil Corp. (NYSE:XOM), is a highly-rated dividend aristocrat, with a dividend growth streak of 41 years. Exxon has a high payout ratio for an energy company, with ~50% of 2025 earnings forecast in dividends. During the first quarter, Exxon returned $4.3B in dividend to shareholders with another $4.8B spent on share buybacks. Exxon reported second quarter revenue of $81.51B (-12.4% Y/Y), beating the Wall Street consensus by $1.2B while Q2 Non-GAAP EPS of $1.64 beat by $0.09. During the earnings call, Exxon Chairman and CEO Darren W. Woods outlined plans to grow Permian production by 700,000 barrels of oil equivalent (boe) per day to 2.3 million by 2030 and expand Guyana output to 1.7 mboe. Exxon tops Morningstar's best dividend stocks list, with Morningstar director Allen Good saying the company's dedication to growing oil and gas production lowers risks for investors, 'While this strategy is unlikely to win praise from environmentally oriented investors, we think it's more likely to be more successful and probably holds less risk.' Morningstar has a $135 price target on XOM, good for 26.2% upside from current price. #2. Chevron Forward Dividend Yield: 4.41% Sector: Energy Industry: Oil and Gas Integrated Chevron Corp. (NYSE:CVX) is another dividend champ, having grown distributions for 38 consecutive years. Chevron's 4.4% dividend yield is among the highest for large-cap oil and gas companies. The company returned a mixed report for the second quarter, with non-GAAP EPS of $1.77 beating by $0.02 while Q2 revenue of $44.82B (-12.4% Y/Y) missed by $230M. Chevron attributed lower earnings compared to a year ago to lower crude oil prices coupled with an unfavorable fair value adjustment for Hess shares. Chevron completed the acquisition of Hess on July 18, 2025, after winning a legal battle with ExxonMobil over the rights to a stake in a lucrative offshore oil project in Guyana. The total enterprise value of the deal was $55 billion, including debt. The company increased its 2026 free cash flow guidance to $12.5 billion, thanks to the Hess acquisition, and anticipates realizing $1 billion in annual run-rate synergies from the merger by the wend of 2025. #3. Eversource Energy Forward Dividend Yield: 4.5% Sector: Utilities Industry: Regulated Electricity Springfield, Massachusetts-based Eversource Energy (NYSE:ES) is a public utility that engages in the energy delivery business, providing electricity to 4.4 million customers. Eversource recently joined the S&P 500 Dividend Aristocrat Index thanks to its 25-year track record of dividend increases. However, what makes ES a compelling dividend pick is the fact that the company's five-year compound annual growth rate (CAGR) for the dividend clocks in at 5.9% — well above the average for the Aristocrat Index. The company has projected earnings growth of 5-7% annually through 2029, which should support dividend growth at the current clip. Eversource reported second quarter revenue of $2.84B (+12.3% Y/Y),$90M below the Wall Street consensus while Q2 GAAP EPS of $0.96 was in-line. The company increased its 5-year infrastructure investment plan by 10% thanks to the balance sheet strengthening coupled with constructive regulatory outcomes. By Alex Kimani for More Top Reads From this article on
Yahoo
27-05-2025
- Business
- Yahoo
Realty Income Stock: Buy, Hold or Sell This High-Yield Dividend Play?
Amid uncertainty around tariffs, fiscal concerns and market volatility, focusing on dividend stocks is gaining traction, and this brings our attention to Realty Income O, which is an S&P 500 Dividend Aristocrats index member. With 30 consecutive years of dividend increases and 110 straight quarterly hikes, the REIT has built a reputation for delivering dependable stock fell more than 14% from its 52-week high achieved last October, closing at $55.53 on Friday. However, the decline has pushed its dividend yield up to 5.8%, potentially creating an attractive opportunity for income-focused investors. So far in the year, the stock has outperformed the Zacks REIT and Equity Trust - Retail industry and the S&P 500 instead of acting on impulse, one should take a closer look at whether this REIT can maintain its dividend through solid growth and weigh how much the present risks might truly affect its future outlook. Year-to-Date Price Performance Image Source: Zacks Investment Research Realty Income stands out as a pillar of reliability in the REIT space, earning its reputation as 'The Monthly Dividend Company' for being a payer of dividends every month. Since 1994, it has achieved a 4.3% compound annual dividend growth rate, a testament to both strategic discipline and consistent performance. Check Realty Income's dividend history consistency is supported by a large and diversified portfolio of 15,627 income-generating properties across the United States and Europe. Realty Income focuses on non-discretionary, low price point and service-oriented tenants — sectors less sensitive to economic cycles and e-commerce disruption. Approximately 91% of rent comes from sectors resilient to economic downturns and e-commerce disruption, including non-discretionary retail and service-based Realty Income maintains a solid foundation, holding $2.9 billion in liquidity and investment-grade credit ratings from Moody's (A3) and S&P (A-). With a fixed-charge coverage ratio of 4.7 and a net debt to EBITDAre of 5.4X, the company retains the flexibility to fund future growth. A well-laddered debt schedule with a weighted average maturity of 6.3 years further supports financial recent years, Realty Income has successfully expanded into new verticals like gaming, industrial and data centers, increasing its diversification and growing its addressable market. The REIT is capitalizing on strategic opportunities, including a partnership with Digital Realty DLR and high-profile investments in assets like Encore Boston Harbor. With an estimated $14 trillion global net lease market and a projected $4 billion in 2025 investments, Realty Income is positioning itself for long-term Realty Income has many strengths, it also faces meaningful headwinds. Ongoing tariff uncertainty could place additional pressure on retailers within its portfolio, potentially affecting rental income and operational performance. Furthermore, the REIT remains sensitive to the impact of elevated interest rates. As treasury yields rise amid fiscal concerns and the Fed's cautious stance on rate cuts due to the uncertainty around tariffs, bonds grow increasingly appealing compared to income-generating REITs. This dynamic may dampen investor appetite for Realty Income's stock, weigh on its share price and constrain its ability to access low-cost capital for future growth initiatives. O's Estimate Revisions and Valuation The estimate revisions reflect a somewhat bearish trend. The Zacks Consensus Estimate for 2025 adjusted funds from operations (AFFO) per share has declined marginally over the past two months, while the same for 2026 has also moved south by a cent over the past month. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) O's Consensus Estimate Trend (60 Days) Image Source: Zacks Investment Research Realty Income stock is trading at a forward 12-month price-to-FFO of 12.82X, below the retail REIT industry average of 14.81X and also lower than its one-year median of 13.13X. Although Realty Income stock is currently trading at a discount compared to its industry peers like Agree Realty Corporation ADC, this valuation disparity might not be as favorable as it seems. Agree Realty is trading at a forward 12-month price-to-FFO of 17.32X. Forward 12 Month Price-to-FFO (P/FFO) Ratio Image Source: Zacks Investment Research Realty Income remains a top-tier dividend play, combining reliable income with long-term growth prospects. Its stable cash flows are underpinned by a well-diversified tenant base and a long-term net lease model, which prioritizes tenants in essential, low-price-point sectors. This structure adds resilience and visibility to its revenue stream. The company's strategic shift into alternative property types, such as gaming, as well as its foray into data centers through its collaboration with Digital Realty, reflects a proactive, future-oriented growth strategy. Coupled with a strong balance sheet and investment-grade credit profile, Realty Income is positioned to navigate evolving market conditions effectively. That said, while the stock currently trades at a relative discount to peers like Agree Realty, prospective investors may choose to remain cautious until there's greater clarity on macroeconomic trends and potential policy shifts. For current shareholders, Realty Income's track record of consistent dividend increases and durable asset mix continues to make it a compelling hold in income-focused present, Realty Income carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Realty Income Corporation (O) : Free Stock Analysis Report Digital Realty Trust, Inc. (DLR) : Free Stock Analysis Report Agree Realty Corporation (ADC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
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From Campus to Career: Hormel Foods Welcomes 95 Interns for Transformative Summer Experience
Award-winning internship program offers students from 50 colleges and universities three months of hands-on business experience AUSTIN, Minn., May 27, 2025 /PRNewswire/ -- It's more than an internship — it's a launchpad to a rewarding career. Typically, more than 70% of Hormel Foods interns become full-time team members at the company. Starting today, the company will welcome over 95 students from 50 colleges and universities across the country. "We're thrilled to welcome another class of bright interns who will bring fresh energy to our offices and production facilities nationwide," said Amy Sheehan, director of talent acquisition at Hormel Foods. "I'm incredibly proud of our team for their work in building an industry-leading internship program that continues to grow and evolve over time. Our people are providing fantastic learning experiences for students just getting started on their career journey." Talented students are immersed in real business scenarios across all functional groups of the company, including sales, food science, engineering and marketing. The goal of these paid, full-time internships is to create hands-on business experience, offering students opportunities to work with and learn from all levels of Hormel Foods leadership. "Our internship program is carefully crafted to offer students an immersive experience," Sheehan said. "We give students the chance to explore a wide range of career paths and contribute to purposeful work. They get to work alongside experienced professionals who are passionate about what they do, and this program truly helps launch careers. We look forward to seeing the impact our interns will make this summer." Hormel Foods has consistently been recognized for hosting one of the best internship programs in the nation by Vault, a leader in career research, exploration and discovery for professionals and students. In 2024, the company's internship program was honored with a category award, named among the country's "Best Internships for Engineering, Sales, Marketing and Communications." About Hormel Foods — Inspired People. Inspired Food.™Hormel Foods Corporation (NYSE: HRL), based in Austin, Minnesota, is a global branded food company with approximately $12 billion in annual revenue across more than 80 countries worldwide. Its brands include PLANTERS®, SKIPPY®, SPAM®, HORMEL® NATURAL CHOICE®, APPLEGATE®, JUSTIN'S®, WHOLLY®, HORMEL® BLACK LABEL®, COLUMBUS®, JENNIE-O® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report, one of America's most responsible companies by Newsweek, recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. The company lives by its purpose statement — Inspired People. Inspired Food.™ — to bring some of the world's most trusted and iconic brands to tables across the globe. For more information, visit Contact: Media RelationsHormel Foodsmedia@ View original content to download multimedia: SOURCE Hormel Foods Corporation Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-05-2025
- Business
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40-Year-Old Making $4K a Month in Dividends Reveals His Top 8 Stocks — 'We Don't Wear Fancy Clothes or Spend Money on Impressing Others'
Investors are turning to dividend stocks to guard their portfolios against market volatility amid trade wars and recession risks. Data from S&P Global shows that from Dec. 29, 1989, through the end of February, the S&P 500 Dividend Aristocrats outperformed the S&P 500 in 66.67% of the months when the broader index posted a loss. A few days ago, a dividend investor shared his income report and investing journey on r/Dividends, a Reddit community with over 700,000 followers. The portfolio screenshots shared by the investor on the social platform showed his monthly dividend income was roughly $3,960. The investor, around 40, said he started investing at the age of 20. Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Can you guess how many retire with a $5,000,000 nest egg? . "At the time I never took it seriously and just putting in like 20-50$ a month," he said. "I 'seriously' started at around 23-24 when I was putting in approx, 300$ on average (that was a huge for me back then), and now averaging at around 2-2.5k per month." The investor said while it's difficult to see his portfolio suffering declines amid the current market environment, he's playing the "long game" and believes stocks will eventually go in a positive territory. The investor said he's never been a "big spender" and has expenses of about €700 a month. He lives in Europe where cost of living is not "that high," he wrote. "Other than that we have two old cars (20 and 15 years) – included in above expenses. We don't wear fancy clothes or spend money on impressing others (this can cost you a fortune)," he added. Trending: It's no wonder Jeff Bezos holds over $250 million in art — Let's take a look at some of the key dividend stocks in his portfolio. Schwab U.S. Dividend Equity ETF Schwab U.S. Dividend Equity ETF (NYSE:SCHD) tracks the Dow Jones U.S. Dividend 100 Index and provides exposure to some of the top dividend stocks trading in the U.S., including Verizon (NYSE:VZ), Coca-Cola (NYSE:KO), ConocoPhillips (NYSE:COP), Lockheed Martin (NYSE:LMT) and Chevron (NYSE:CVX). JPMorgan Equity Premium Income ETF JPMorgan Equity Premium Income ETF (NYSE:JEPI) makes money by investing in some of the most notable large-cap U.S. stocks and selling call options. Ares Capital Ares Capital (NASDAQ:ARCC), a business development company, was one of the top stocks in the investor's portfolio. He earned $1,920 in annual dividends from the stock. Public Storage Public Storage (NYSE:PSA) is a California-based REIT that operates self-storage facilities. The stock has a dividend yield of 4.1%. BofA Securities recently upgraded the stock to Buy from Neutral and raised its price target to $368 from $ S&P 500 ETF Trust With a 1.2% dividend yield, SPDR S&P 500 ETF Trust (NYSE:SPY) provides investors exposure to the broader US market. The investor made $1,218 in annual dividends from his investment in the fund. Altria Group Altria Group (NYSE:MO) has a dividend yield of about 7%. The tobacco giant accounted for about $800 in annual dividend income for the investor, according to the screenshots he shared on the social media platform. PepsiCo Inc Beverage giant Pepsi (NASDAQ:PEP) has increased its dividends for over 50 consecutive years. The company recently reported first-quarter earnings that missed Wall Street estimates while revenue beat expectations. The stock yields 4%. Johnson & Johnson Johnson & Johnson (NYSE:JNJ) is one of the most reliable dividend stocks, having raised its payouts for 63 consecutive years. The stock is up 8% so far this year. The company recently flagged a $400 million hit related to President Donald Trump's tariffs. Read Next:Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 40-Year-Old Making $4K a Month in Dividends Reveals His Top 8 Stocks — 'We Don't Wear Fancy Clothes or Spend Money on Impressing Others' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
