24 Top Dividend Stocks to Buy and Hold in 2024

It’s the beginning of a new year. And that means many investors are looking for ideas for stocks to buy. The good news is that are plenty to be found.

Quite a few of those ideas for the new year offer dividends of at least 2%. Here are 24 top dividend stocks to buy and hold in 2024 (listed by sector in alphabetical order).

Consumer goods

You won’t usually find stocks that offer exceptional growth in the consumer goods arena. However, many of them provide great dividends. Four especially stand out to me:

Data source: Company websites, Google Finance. Dividend yields as of the time of writing.

What I really like about several of these stocks is their track records of dividend increases. Hormel, Lowe’s, and Target are all Dividend Kings with at least 50 consecutive years of dividend increases. Conagra doesn’t claim such an impressive streak, but the food giant has grown its dividend significantly in recent years.

Energy

I’ve included more stocks from the energy sector than any other sector. The reason is simple: There are a lot of energy stocks with fantastic dividends.

Data source: Company websites, Google Finance, Yahoo! Finance. Dividend yields as of the time of writing.

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Brookfield Infrastructure is typically categorized as a utility stock. However, since it operates pipelines, I’ve included it in the energy group. Several other pipeline operators are in the mix as well. They all offer outstanding dividends or distributions. Their business models also make them less impacted by commodity price swings.

Financial services

Several financial services stocks are attractively valued right now. The possibility of interest rate cuts later this year could hurt these stocks in some ways, but help in others.

Data source: Company websites, Google Finance. Dividend yields as of the time of writing.

Bank of America and Goldman Sachs are well known, but you might not be as familiar with Ares Capital. I like the stock because of its juicy dividend yield, excellent history of delivering market-beating total returns, and opportunities for the company to provide capital to middle-market businesses.

Healthcare

The healthcare sector has been a longtime favorite for income investors. I think that should change in 2024.

Data source: Company websites, Google Finance. Dividend yields as of the time of writing.

You might wonder why Pfizer made the list after its dismal performance last year. The big drugmaker’s problems are primarily due to the declining demand for its COVID-19 products. However, Pfizer should be able to deliver solid long-term growth with its current portfolio, promising pipeline, and business development deals. In the meantime, its dividend yield is too good to ignore.

Industrials

Only one stock from the industrial sector made my list for 2024. However, I like its long-term prospects — and its dividend yield.

Data source: Company websites, Google Finance. Dividend yields as of the time of writing.

Sure, UPS faces some challenges. But its business remains fundamentally solid.

Real estate

If you’re looking for high dividend yields, you’ll definitely want to check out real estate investment trust (REIT) stocks. I especially like three of them for the new year.

Data source: Company websites, Google Finance, Yahoo! Finance. Dividend yields as of the time of writing.

I expect Crown Castle to turn the corner in 2024 after losing Sprint’s business following its merger with T-Mobile. Rithm Capital is the dark horse of this group. My prediction is that the stock will keep its momentum going this year and deliver strong total returns.

Technology & telecommunications

Last but not least, a couple of tech and telecom stocks rank on my list of the top dividend stocks to buy and hold in 2024.

Data source: Company websites, Google Finance. Dividend yields as of the time of writing.

Verizon appears to be getting back on track after posting solid third-quarter results. Broadcom might be the most surprising pick of all. Its dividend yield is the lowest of any stock on the list. Its valuation is a little high as well after shares nearly doubled last year. However, I like the company’s growth prospects and its history of hefty dividend increases.

Emphasis on “and hold”

Note that these aren’t just stocks to buy in 2024 and take a profit later in the year. I emphasize the “and hold” part of “buy and hold.” These stocks may or may not generate positive gains this year. But I fully expect them to be winners over the long term.

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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in AbbVie, Ares Capital, Bank of America, Brookfield Infrastructure Partners, Devon Energy, Enterprise Products Partners, and Pfizer. The Motley Fool has positions in and recommends Bank of America, Crown Castle, Enbridge, Goldman Sachs Group, Pfizer, and Target. The Motley Fool recommends Broadcom, Brookfield Infrastructure Partners, CVS Health, Enterprise Products Partners, Johnson & Johnson, Lowe’s Companies, T-Mobile US, United Parcel Service, and Verizon Communications. The Motley Fool has a disclosure policy.

24 Top Dividend Stocks to Buy and Hold in 2024 was originally published by The Motley Fool

Source: finance.yahoo.com