Dividend growth investing is a great way to generate passive income. When there is market uncertainty, the right way to park your funds is in dividend stocks since they keep your money safe and will ensure healthy and consistent cash inflows. If you are here to generate passive income, you need to look out for dividend growth and not the dividend yield. Several companies pay regular dividends, and reward investors, but not every company will pay handsomely each quarter. Let’s take a look at those that do. Here are the three dividend stocks that will pay you quarterly.

MMM 3M $103.28
LMT Lockheed Martin $477.45
DVN Devon Energy $50.33

3M (MMM)

a photo of 3M protective masks

Source: r.classen / Shutterstock.com

3M (NYSE:MMM) is a solid dividend stock that has increased its dividend by 0.7% in the recent dividend declaration in February. The company paid a dividend of $1.5 this quarter and an annual dividend of $5.96 in 2022. It also returned $4.8 billion to the shareholders last year through share repurchases and dividends. And it is one company that has over 100 years of uninterrupted dividend payments. This is one of the most attractive dividend stocks that pay quarterly. 3M stock is currently trading at $104, down 27% in the year. However, the stock has the potential to bounce back once the demand for its products improves.

For 2023, the company expects a 3% decline in organic sales growth and the selling prices up towards the low single digits. However, it aims for an adjusted EPS of $8.50 to $9. While the company is facing a tough market and macroeconomic environment right now, there is a high chance of improvement in the second half of the year. The earnings might not have been impressive, but it is still a solid long-term investment.

3M is a company with healthy financials and a strong balance sheet. The company has high liquidity and several investment options ahead. This means it could spend more on research or make some strategic investments this year. The company has a dividend yield of 5.77% and has consistently paid shareholders each quarter. A dividend yield above 5% is attractive, and with 3M, there is a certainty that the company will not stop or reduce the dividend payouts.

Lockheed Martin (LMT) 

LMT Stock Is a Case Study for Buying on the Dip

Source: Shutterstock

Another dividend stock to own is Lockheed Martin (NYSE:LMT). It is a defense stock that has been rewarding investors for many years. The company manufactures fighter jets which are vital weapons during wars, and while the demand for its products cannot be predicted, it is something that a country will always require. It is also a huge player in the aerospace industry and has a solid satellite business. LMT stock is up 16% over the past six months, trading at $477 today. It is consistently setting new all-time highs. LMT is one of the top dividend stocks that pay quarterly.

The company has been recently awarded $106.95 million Navy contract modification for the F-35 Joint Strike Fighter Program. It is a modification to a previously rewarded contract, and despite a decrease in defense spending in this budget, this is one stock that could pay off in the long term.

If you are here to generate a handsome passive income through stock investment, LMT stock is worth considering. It recently declared a dividend of $3. Another reason to bet on the stock is that it is a robotics company, and robots today are used in military operations. The company is leading the race and has already developed a robotic mule for $500,000, which carries the equipment for a soldier while they are on missions. The use of robots in the military is still early, but there is massive potential. This is where Lockheed Martin could enjoy an early-mover advantage.

LMT stock is a blue-chip stock worth considering, and it might have a dividend yield of only 2.5%, but the annual dividend payout is a whopping $12 per share.

Devon Energy (DVN)

An image of a hand holding a smartphone displaying the Devon Energy Corporation logo in front of a computer screen

Source: T. Schneider / Shutterstock.com

Energy companies are here for the long term, and one such player is Devon Energy (NYSE:DVN). The company is engaged in hydrocarbon exploration and is one of the top dividend stocks to own. It has a dividend yield of 8.73% which is much better than several blue-chip companies today.

DVN stock is trading at $50 today, down 27% in the past six months. With a rise in crude oil prices, the company saw massive growth and reported a free cash flow of $2.1 billion. Through this, it managed to reduce the outstanding shares by 4%.

 The stock dropped after the company showed lower production and higher capital expenditure targets for this year. This drop gives a better entry point for investors looking to add the dividend stock to their portfolio. It announced a dividend increase of 11% in 2023 which came in at $5.17 for the year, and it announced a dividend of $0.89 for this quarter. The company has not indicated that its dividend is in danger. Looking at the balance sheet, we can see that the firm has enough resources to keep rewarding the shareholders.

The stock has been steady, and it rarely falls. After the massive drop in 2022, the stock did snap back and rewarded patient investors. DVN stock is also one of the best oil and gas stocks to own in 2023.

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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