As a long-term investor, you’re probably looking for ways to build wealth over time while minimizing risk. One strategy is investing in dividend-paying stocks. Not only do these stocks provide a steady stream of income, but they also have the potential for long-term growth. These stocks offer a unique blend of affordability, potential for growth, and regular dividend payments. In this article, we’ll explore ten dividend stocks that can provide you with a head start on your investment journey. From trusted brands like Altria Group, Inc. (MO) to the promising real estate ventures of Apollo Commercial Real Estate Finance, Inc. (ARI), we’ll take a closer look at each company, their dividends, and what makes them worth considering.
Altria Group, Inc. (MO)
Let’s kick off with Altria Group, Inc., a well-known tobacco company that has been a reliable performer over the years. Despite the tobacco industry’s challenges, Altria has managed to maintain a strong market position, which translates into steady cash flows. The best part? They offer an attractive dividend yield, making it a popular choice among income-oriented investors who value stability.
Apollo Commercial Real Estate Finance, Inc. (ARI)
Now, let’s shift our attention to Apollo Commercial Real Estate Finance, Inc., a company that specializes in commercial mortgage loans. As a real estate investment trust (REIT), they have an impressive portfolio of diverse investments in the real estate market. ARI is known for their reliable dividend payments, making it a fantastic option for those interested in tapping into the income potential of real estate.
Blackstone Mortgage Trust, Inc. (BXMT)
Another exciting REIT to consider is Blackstone Mortgage Trust, Inc., which focuses on originating and acquiring senior mortgage loans in the commercial real estate market. They have a proven track record of generating attractive risk-adjusted returns for their investors. With their conservative approach to underwriting and a well-diversified loan portfolio, BXMT offers an opportunity to benefit from the stability and income potential of commercial real estate.
Gladstone Investment Corporation (GAIN)
Looking for exposure to small to medium-sized businesses? Gladstone Investment Corporation might be just what you need. As a business development company, GAIN invests primarily in such businesses across various industries. They offer a diversified portfolio, aiming to provide both income and potential capital appreciation. With a consistent history of dividend payments, GAIN presents an appealing option for those interested in the middle-market segment.
Invesco Mortgage Capital Inc. (IVR)
Invesco Mortgage Capital Inc. operates as a mortgage REIT, focusing on residential and commercial mortgage-backed securities. IVR aims to generate attractive risk-adjusted returns through a combination of income and potential capital appreciation. If you’re interested in the mortgage market, IVR’s risk management approach and diversified portfolio can help you benefit from the income potential while managing potential risks.
Pfizer Inc. (PFE)
Moving away from real estate, let’s explore Pfizer Inc., a global pharmaceutical company. Besides offering potential capital appreciation, Pfizer also provides consistent dividend payments. With a diverse portfolio of innovative drugs, Pfizer holds a strong market position and has delivered impressive financial performance. Their commitment to research and development, along with a robust product pipeline, positions PFE for potential growth and long-term dividend sustainability.
AT&T Inc. (T)
Now, let’s shift our focus to telecommunications with AT&T Inc. As a telecom giant, AT&T has a reputation for being a reliable dividend stock. Their extensive network infrastructure and diverse service offerings create a stable foundation for consistent cash flows. Moreover, their expansion into 5G and ventures into streaming services further enhance their growth prospects. If you’re seeking a competitive dividend yield and a history of dividend increases, T is worth considering.
Oxford Lane Capital Corp. (OXLC)
If you’re intrigued by alternative assets, take a look at Oxford Lane Capital Corp. This closed-end management investment company primarily invests in collateralized loan obligation (CLO) equity and debt securities. OXLC’s investment strategy aims to provide attractive risk-adjusted returns through income generated from CLO investments. With their specialized focus on the credit markets and a history of attractive dividends, OXLC offers a unique opportunity for those keen on exploring alternative asset classes.
STAG Industrial, Inc. (STAG)
Are you interested in the industrial sector? Look no further than STAG Industrial, Inc., a REIT that acquires, owns, and operates single-tenant industrial properties across the United States. STAG’s strategy capitalizes on the growing e-commerce market and the increased demand for industrial space. Their well-diversified portfolio and long-term lease agreements provide stable cash flows, making STAG an attractive option for investors seeking consistent dividend payments.
Tanger Factory Outlet Centers, Inc. (SKT)
Last but not least, let’s explore Tanger Factory Outlet Centers, Inc., a REIT that owns and operates outlet shopping centers across the United States and Canada. Tanger’s portfolio consists of high-quality properties located in prime retail locations. With a focus on brand-name retailers and stable occupancy rates, Tanger Factory Outlet Centers offers investors an opportunity to benefit from the resilience of the outlet retail sector while enjoying consistent dividend payments.
If you had invested $1000 in these stocks distributed evenly ($100 on each stock), you would have about $1050 dollars today (June 14,2023) which is a 5.07% yield. Now, these are not exactly a blockbuster earnings by any means, but a slow and steady kind of growth.
In conclusion, dividend-paying stocks are a great option for long-term investors looking for a steady stream of income and potential for growth. Whether you prefer the stability of Altria Group, Inc. or the growth potential of AT&T Inc., these dividend stocks offer a blend of affordability, income potential, and the possibility for capital appreciation. Remember, before making any investment decisions, conduct thorough research and seek guidance from a financial advisor. Here’s to your success in building a profitable portfolio!
Investors should conduct their own due diligence and consider factors such as market conditions and risk tolerance before making any investment decisions.
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