Three Dividend-Yielding Stocks with Unwavering Distributions, Serving as Solid Foundations for Portfolio Construction
If you're new to investing, looking for dividend income, or wanting to beef up your portfolio, focus on businesses with robust fundamentals and growth potential. Three stocks that fit the bill and could bring you a fortune in dividends over time are UnitedHealth Group (UNH), Home Depot (HD), and Bank of Montreal (BMO). Here's why.
UnitedHealth Group
The healthcare sector is a significant expense in the U.S., growing by 7.5% in 2023 to an astounding $4.9 trillion, or $14,570 per person [1]. The need for health insurance isn't waning, especially with an expanding population and more seniors. Investing in a top player like UnitedHealth Group is a smart move for investors seeking long-term stability.
Despite challenges due to rising medical costs, UnitedHealth's earnings from operations remained robust at $32.3 billion in 2023, almost unchanged from the previous year [1]. Revenue also climbed by 8% in 2024, hitting an impressive $400 billion [1].
UnitedHealth pays a dividend yielding 1.6% and has boosted its quarterly payouts by an astronomical 94% in just five years [1]. Those looking for reliable income should consider UnitedHealth Group a no-brainer choice for dividend investing.
Home Depot
Construction and home repair needs are inevitable, whether due to natural disasters or everyday wear and tear. Companies like Home Depot meet these needs, making it a solid choice for long-term investors. While economic conditions are challenging right now, Home Depot remains steady with sales climbing 2% in the nine-month period ended Oct. 27, 2024 [1].
Home Depot offers a 2.2% dividend yield and has raised its dividend by 65% over the past five years [1]. Investors looking for income and long-term growth can benefit from Home Depot's stable earnings and cash flow.
Bank of Montreal
Investing in the economy is smart; an excellent way to do that is by buying shares of a bank. Bank of Montreal is a top option, boasting a high yielding dividend of 4.6% and a history of consistent dividend increases [1].
With a robust presence in both Canada and the U.S., Bank of Montreal is primed for future growth. As the populations and economies of both countries grow, banking revenue will soar. In its recent fiscal year, Bank of Montreal's revenue surged 12% to $32.8 billion CAD [1].
Bank of Montreal is an excellent long-term investment, providing a stable source of income as the economy grows over time.
References:[1] YCharts[2] S&P Global Market Intelligence[3] Bank of Montreal Investor Relations
Enrichment data highlights the current dividend yields and dividend growth rates for UnitedHealth Group, Home Depot, and Bank of Montreal, as well as their strengths as buy-and-hold dividend investments.
After recognizing the growth potential in the healthcare sector, investing in a stable company like UnitedHealth Group could provide long-term stability and dividend income for investors. With a robust earnings record and an impressive dividend increase of 94% in five years, UnitedHealth Group is a strong consideration for dividend investors.
As natural disasters and everyday wear and tear continue to necessitate home repairs and construction, investing in Home Depot becomes a wise decision for those seeking long-term growth and income. Home Depot's steady sales growth and a dividend boost of 65% over five years make it an attractive choice for income-focused investors.
