While many experts continue to see hard times ahead for the stock market, it may be time to look at dividend-paying stocks for 2023.
Dividend stocks are a way to diversify a portfolio that may be looking a little too obsessively for growth. They generate income in good times, bad times and, especially important today, times of high inflation. (U.S. consumer prices rose 7.7% in October from a year ago.)
They also tend to outperform the S&P 500 over the long term.
The Bill & Melinda Gates Foundation Trust is one of the leading dividend-rich equity portfolios. Since the trust is used to fund so many initiatives, revenues must continue to flow into it.
Dividend stocks help make it happen.
Here are three dividend-paying stocks that figure prominently in the foundation’s holdings.
Waste Management (WM)
It’s not the most glamorous of industries, but waste management is essential.
No matter what happens with the economy, municipalities have no choice but to pay companies to dispose of our mountains of waste, even as those costs rise.
As one of the biggest players in the space, Waste Management remains in a strong position.
Shares have nearly doubled in the past five years. In the first nine months of 2022, operating revenue grew 11% year over year.
Currently yielding 1.6%, Waste Management’s dividend has increased for 19 years in a row.
The company has paid nearly $1 billion in dividends over the past year, and its roughly $2.5 billion in free cash flow for 2021 means investors shouldn’t have to worry. receive their checks.
As a company whose fortunes generally follow that of the broader economy – that will happen when your equipment is installed on construction sites around the world – Caterpillar finds itself in an intriguing post-pandemic position.
Company revenues are feeling the effects of a crippled global supply chain, but President Joe Biden’s $1.2 trillion infrastructure bill means there could be a huge amount of construction going on in the United States. United in the near future.
Caterpillar’s mining and energy businesses also provide exposure to commodities, which tend to do well in times of high inflation.
The company’s stock has driven commodity and oil prices up more than 60% over the past five years.
After announcing an 8% increase in June, Caterpillar’s quarterly dividend is currently $1.20 per share and yields 2.0%. The company has increased its annual dividend for 28 consecutive years.
With grocery stores considered essential businesses, Walmart has been able to keep its more than 4,700 stores in the United States open throughout the pandemic.
Not only has the company increased both profits and market share since COVID coughed up across the planet, but its reputation as a low-cost haven makes Walmart a go-to retailer when prices rise.
Walmart has steadily increased its dividends over the past 49 years. His annual payout is currently $2.24 per share, which translates to a dividend yield of 1.5%.
Walmart is currently trading at $153 per share, down from its 52-week highs of $160.77 set in April.
What to read next
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.