Investors planning to generate stable passive income through dividend stocks could consider investing in the shares of Walmart (NYSE:WMT), Coca-Cola (NYSE:KO), and Albemarle (NYSE:ALB). These companies are Dividend Aristocrats (learn more about Dividend Aristocrats here) and have a growing earnings base to support their future payments.
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Let’s dig deeper to understand why these Dividend-Aristocrat stocks are dependable investments.
Is Walmart Stock a Buy Now?
Walmart, with its defensive retail business and ability to generate solid earnings in all market conditions, is a reliable dividend stock offering quarterly payouts. Dividend payouts are part of the company’s diversified capital returns approach to enhance its shareholders’ returns. Thanks to its focus on boosting shareholders’ total returns, WMT has increased its dividend for an impressive 50 consecutive years.
Its wide product range, value pricing strategy, and ease of shopping through omnichannel offerings position it well to drive traffic regardless of the economic situation. Further, the company consistently generates solid earnings and cash flows to support its payouts.
WMT recently increased its Fiscal year 2024 annual dividend to $2.28 per share, reflecting a yield of 1.47%.
WMT stock has received 25 Buy and four Hold recommendations from Wall Street analysts, reflecting a Strong Buy consensus rating. Analysts’ average 12-month price target of $169.44 implies 9.40% upside potential.
Is Coca-Cola a Buy or Sell?
Coca-Cola is a top stock for investors seeking passive income. The company is also one of the favorites of ace investor Warren Buffet. The beverage giant recently increased its quarterly dividend by 4.6% to $0.46 a share. This also marked the company’s 61st consecutive year of annual dividend growth.
Coca-Cola’s resilient business, diversified portfolio, solid organic revenue, and consistent EPS and cash flow growth position it well to enhance its shareholders’ returns through increased dividend payments. In 2022, Coca-Cola distributed $7.6 billion to its shareholders in the form of dividends. Moreover, it has returned approximately $76.8 billion in dividends since January 1, 2010.
KO stock has received 13 Buy and three Hold recommendations, translating into a Strong Buy consensus rating. Moreover, analysts’ average price target of $70.25 implies 18.45% upside potential to current levels.
Is ALB a Good Investment?
Specialty chemicals company Albemarle is another solid stock for income investors. The company produces lithium, a key material that is fuelling EV (electric vehicle) growth and supporting the global energy transition.
Thanks to the strong demand, Albemarle is expanding its capacity and benefitting from strategic contracting agreements. Further, it focuses on optimizing earnings, cash flows, and cost structure, which bodes well for future growth. Also, the company expects to enhance its shareholders’ returns through higher dividend payments.
Earlier this year, Albemarle increased its quarterly dividend to $0.40 per share, marking the 29th consecutive year of dividend growth.
ALB stock has 14 Buy, three Hold, and one Sell recommendations for a Moderate Buy consensus rating on TipRanks. Analysts’ average 12-month price target of $257.22 implies 7.24% upside potential.
Bottom Line
The Dividend Aristocrat stocks have a resilient business model, a solid dividend payment and growth history, and a growing earnings base, making them attractive investments for investors seeking worry-free passive income.
