Key points
- Dividend Kings are stocks you buy repeatedly, targeting when they are down for maximum returns.
- Dividend Kings offer above-average yields, trending high when trading at long-term lows.
- Stocks on this list are trading at significant lows, pay high yields, can support dividend growth, and are on track to rebound.
- 5 stocks we like best from Federal Realty Investment Trust
Dividend Kings are high-quality income investments for long-term oriented investors. Investors don’t buy these stocks once and then forget about them; they buy them repeatedly, building strong positions that increase the value of the portfolio. Among the qualities of Dividend Kings is the ability to withstand economic cycles, market recessions and slowdowns in growth to come back better and stronger than before. The trick is knowing when to buy them, but the saying rings true: Buy them when they’re down.
Northwest Natural is a high-yield king to buy now
Natural Northwest NYSE: NWN it’s a high-yield Dividend King, paying more than 5.25% with shares at multi-year lows. The multi-year low is due to lack of interest in natural gas utilities; the company has sustained operations, invested in growth, and paid substantial dividends throughout the time the stock price has been trending down.
The highlights are that the company is set to continue to sustain its dividend and that the business is growing. Analysts also expect significant margin expansion and earnings growth, improving the payout ratio to below 70%. Analysts rate the stock a Hold and have recently reduced their targets, but still see deep value in it. The lower price target is above the current price movement and the consensus calls for a 27% upside.
Federal Realty Investment Trust: Invest in retail with retail real estate
Federal Real Estate Investment Fund NYSE:FRT specializes in high-quality retail real estate across the United States. Its strategy allows exposure to the retail sector while minimizing risk for investors. The company makes money from rent, not sales, and is locked into long-term contracts. The stock yields almost 4.4%, trading near the long-term low and is reliable and safe. The company has paid and sustained annual distribution increases for 55 years and is on track to continue with increases for the foreseeable future. Analysts rate the stock a Moderate Buy and see it advancing about 2% to the low end of their range. Consensus is around 15% and could be reached soon.
Stanley Black & Decker has turned the corner in 2023
Stanley Black & Decker NYSE: SWK suffered a decline in 2023 due to lack of growth and profitability. That changed at the end of the year and it is now on track to produce profits and return to growth by the end of the year. Analysts expect top and bottom line growth to continue into 2025, which is good news for the dividend. The payout ratio went above 100% in 2023 due to the struggle, which led the company to rely on its balance sheet for support. With profits and growth expected, the payout ratio has returned to sustainable levels.
This stock yields 3.45%, with shares at a multi-year low. Analysts tracked by Marketbeat rate it a Hold with a stable price target over the past year. As it stands, the consensus implies a fair value for the stock at current levels, but this could change over the course of the year. FOMC rate cuts will reinvigorate the construction market.
Hormel’s 3.3% dividend is tasty at these levels
Hormel Food’s New York Stock Exchange: HRL stocks bottomed before the first-quarter earnings report and bounced higher. The consumer staples company outperformed first-quarter consensus numbers and reaffirmed guidance, signaling that the return to growth would gain momentum. Analysts welcomed the news and began adjusting their targets, although it may not become an asset until later in the year. As it stands, the consensus rating reported by Marketbeat persists at Reduce, with a consensus target 10% lower than recent action.
Target analysts point to higher stock prices
Objective New York Stock Exchange: TGT Stocks are moving higher after the solid rebound confirmed by the latest earnings release. The Target stock market continues to rally on improving results and an outlook that includes a return to growth next year. Analysts rate this stock a Moderate Buy, leading the market higher with revisions. The consensus is just 3% above the current stock, but has risen 15% since the earnings release, with most new targets well above.
Before you consider Federal Realty Investment Trust, you’ll want to hear this.
MarketBeat tracks Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and Federal Realty Investment Trust wasn’t on the list.
While Federal Realty Investment Trust currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.
View the five stocks here
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