Looking for Passive Income? 3 Dividend Stocks for Steady Cash Flow
Dividend stocks, often known for their long-term outperformance and stable cash flows, offer investors steady passive income and portfolio stability. Investors often seek dividend stocks for passive income, but some also offer strong growth prospects. Indeed, many of the companies who have paid dividends for an extended period of time offer such balance to long-term investors.
First, reliable dividend stocks are typically well-established companies, providing confidence in uncertain times. Second, they tend to be less volatile than growth-focused stocks, maintaining stability during market turbulence. Lastly, when these dividend payers grow, it’s often a sustainable expansion.
Let’s dive into three top picks for investors seeking robust dividend growth and relative stability over the long term.
Realty Income (O)
Realty Income Corp. (NYSE:O) is renowned for its consistent dividend payouts spanning over five decades. Its diverse portfolio of retail and commercial properties ensures steady rental income, even in economic downturns.
It reports a robust 99% Q2 2023 occupancy rate and lease renewals at higher rates. Although its debt has risen to $19.6 billion, the company’s strong cash flow, driven by high occupancy and rising rents, fuels ongoing dividend growth, making it a top REIT choice for September.
Investors value triple-net leases for their extended terms and tenants’ responsibility for all property costs. This offers a stable income source suitable for fixed-rate bonds, guarding against rate fluctuations. Realty Income specializes in resilient sectors, making it one of just two REITs labeled as dividend aristocrats with an A- or higher credit rating.
Furthermore, it possesses over 13,100 real estate properties, mainly leased on long-term net lease agreements. Recently, it acquired Blackstone’s 22% stake in the Bellagio casino for $300 million, also investing $650 million in preferred equity. This investment positions Realty Income to capitalize on Las Vegas’ resurgent market.
Duke Energy (DUK)
Duke Energy (NYSE:DUK) stands strong in the utilities sector, capitalizing on steady demand and regulatory protection.
Based in cost-effective Carolina, it boasts geographical and economic advantages for its vast customer base. Its public utility status, constituting a natural monopoly, adds to its long-term investor appeal.
Despite a recent earnings miss, Duke’s Q2 revenue reached a remarkable $6.58 billion, surpassing expectations by $20 million. The company reaffirmed its 2023 earnings-per-share forecast, anticipating steady 5% to 7% growth in the coming years. With a 4.5% dividend yield and a forward-thinking EV charging subscription service in North Carolina, Duke Energy is poised for a bright future.
The reliable utility firm of Duke Energy maintains consistent earnings and revenue growth, resulting in a sustainable 3% dividend increase. The company’s future looks promising, particularly with investments aligned with the growing electric vehicle trend.
Restaurant Brands (QSR)
Restaurant Brands (NYSE:QSR) is the fast-food giant behind Tim Horton’s, Burger King, Popeye’s Louisiana Kitchen, and Firehouse Subs. These brands have driven impressive growth, fueling a robust dividend yield of around 3.3%.
Under the leadership of Patrick Doyle, formerly with Domino’s (NYSE:DPZ), the company overcame challenges, achieving remarkable results. This includes a 9.7% revenue increase in May, 10% global comparable sales growth in Q1, and a 15.6% surge in adjusted EBITDA to $588 million.
Appointing Doyle as executive chairman last year was a wise move for QSR, given his successful tenure at Domino’s. JPMorgan (NYSE:JPM) anticipates improved financial performance through QSR’s focus on “unit economics” and substantial international restaurant growth. They have set an $82 price target for QSR stock.
On the date of publication, Chris MacDonald has a LONG position in QSR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
U.S. oil futures settle at a fresh high for the year
Oil prices climbed for a third consecutive session Monday to mark a fresh high for the year on continued bets for tighter global crude supplies. “Taming the current bullishness will likely rest on non-OPEC production – especially U.S. shale – showing a stronger response to higher prices and lifting global supply,” said Robbie Fraser, manager, global research & analytics at Schneider Electric. “There are early signs of that occurring, but it will need to be stronger and more consistent to reverse course.” October West Texas Intermediate crude
CLV23,
rose 71 cents, or 0.8%, to settle at $91.48 a barrel on the New York Mercantile Exchange.
Beware! 3 Auto Stocks Waving Massive Red Flags Right Now
Change seems to be the only constant in the ever-evolving landscape of the automotive industry. The sector is undergoing unparalleled shifts. This naturally brings to light certain auto stocks to sell in today’s market. The current volatility acts as a magnifying glass, pinpointing shares that will continue to shed value as the adversity compounds.
As investors, it’s imperative to pivot and strategize, avoiding automotive stocks with more hazards than rewards. Let’s remember the stock market’s tumultuous past, specifically last year. The rout offers a lesson in proactivity. Interestingly, all three stocks we’ll delve into are electric vehicle businesses, emphasizing the importance of shrewdness even in burgeoning sectors.
So, while the buzz might be about electrification, certain auto stocks in this charged market should be avoided.
Mullen Automotive (MULN)
Once a promising EV player, Mullen Automotive (NASDAQ:MULN) seems to be navigating a rocky road. MULN continues striving to regain investor trust following a series of disappointing decisions.
Despite its recent efforts to ignite a rally in its stock, including a $25 million share buyback, the company’s tumultuous past is hard to overlook. A dramatic 98% plummet in its share price over the past six months, combined with three reverse stock splits in a single year, paints a dire picture. Even a $63 million purchase order cannot mask the glaring vulnerabilities in its financials. Additionally, this is underscored by a concerning cash burn rate at a whopping $70 million in the first six months.
Q2 results reveal stark losses and zero sales. Therefore, concerns around Mullen’s operational prowess and fiscal sustainability have intensified. Its management’s optimistic outlook seems to be at odds with the widening gap between its operational costs and forecasted sales. Moreover, its August 1-for-9 reverse stock split attempt fizzled out rapidly, leaving the company’s trajectory uncertain at best.
Canoo (GOEV)
In the rapidly evolving EV landscape, Canoo (NASDAQ:GOEV) is one such case that stands as a cautionary tale.
GOEV enjoyed a brief 35% surge in July, following an expanded partnership with the U.S. Department of Defense and an impressive delivery to NASA. Despite the sparked interest, the enterprise’s underlying financial health remains distressing.
With a concerning cash reserve of only $5 million at the end of the second quarter, against a staggering $62.3 million operational cash outflow, Canoo’s financial positioning remains in question. Despite securing a promising agreement with a renowned Fortune 100 company and raising $56.2 million, its financial runway remains remarkably short. Foreseen capital expenditures of $70 million to $100 million, alongside a projected EBITDA loss of up to $140 million, intensify these worries. Throw in the potential threat of a Nasdaq delisting, and Canoo’s road ahead appears fraught with financial potholes.
Investors need to navigate with heightened prudence effectively.
Lucid Group (LCID)
Lucid Group (NASDAQ:LCID) finds itself at a precarious juncture in the high-stakes world of luxury EVs as it effectively navigates a series of alarming setbacks. The brand is renowned for its popular Lucid Air models and the much-anticipated Lucid Gravity, a luxury electric SUV slated for a 2024 launch. However, it has faced a turbulent journey of late, losing more than 20% in the past six months.
Despite a 55% spike in Q2 revenue, a staggering net loss increase (tripling to $764 million) has cast a shadow of doubt over Lucid’s financial stability. With this alarming uptick in losses and deliveries of just 1,404 vehicles in the same quarter, analysts echo this sentiment of uncertainty.
Even as Baird’s Ben Kallo appreciates Lucid’s in-house technology, he points to a challenging near-term setup and high product prices that have restricted the brand to a niche market. True, Lucid does have ambitious plans to penetrate the fiercely competitive Chinese market.
But this further stirs the pot, with many fearing it could be a bridge too far given existing domestic challenges, including reduced production forecasts and missed analyst expectations.
On the date of publication, Muslim Farooque 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
BioNTech and CEPI to partner to advance an mRNA-based Mpox vaccine
BioNTech SE
BNTX,
and the Norwegian-based Coalition for Epidemic Preparedness Innovations, or CEPI, said Monday they are partnering to advance an mRNA-based Mpox vaccine. BioNTech will start a Phase 1/2 clinical trial of the vaccine called BNT166, while CEPI will commit funding if up to $90 million for the program. Mpox, which was formerly called monekypox, is a zoonotic infectious disease caused by the monkeypox virus, which causes symptoms including skin rash and mucosal lesions, fever, swollen lymph nodes, head-/muscle ache and sore throat. “Severe forms of the disease can occur particularly in children and immunocompromised individuals as well as during pregnancy, with complications including superinfections of the rash and lesions, pneumonia, sepsis, encephalitis, stillbirth and loss of vision following corneal infection,” the two said in a statement. Human-to-human transmission can occurs through physical contact or body fluids, including sexual contact. BioNTech’s stock was up 0.4% premarket but has fallen 25% in the year to date, while the S&P 500
SPX,
has gained 16%.
Cronos stock climbs after launching Peace Naturals medical cannabis brand in Germany
The U.S.-listed shares of Cronos Group Inc.
CRON,
CRON,
climbed 2.5% in premarket trading Monday, after the Toronto-based cannabis company said it launched its Peace Naturals medical brand in Germany. The company has signed a distribution agreement with Cansativa Group, which has a network of about 2,000 pharmacies in Germany. Cronos said it expects the recently announced regulatory changes in Germany, in which cannabis is no longer labeled a narcotic, to “unlock significant growth” in Germany. “Re-entering the German market, which has about 83 million people, is a significant milestone for Cronos and we look forward to expanding our reach and brand awareness in Germany with the help of Cansativa,” said Cronos Chief Executive Mike Gorenstein. The stock has soared 39.8% over the past three months through Friday, while the AdvisorShares Pure US Cannabis ETF
MSOS,
has jumped 65.5% and the S&P 500
SPX,
has gained 0.9%.
GM, Ford and Stellantis’ stocks fall as workers continue strike
The stocks of the Big Three automakers moved lower early Monday, as workers continued their strike for higher pay and other benefits. General Motors Co.’s and Ford Motor Co.’s stocks were down 0.4%, while Stellantis N.V.
STLA,
the former Fiat Chrysler, was down 1.2%. The strike started early Friday after the carmakers failed to reach an agreement with the UAW. On Sunday, UAW President Shawn Fain told CBS’ “Face the Nation” that Stellantis’ latest offer of a 21% pay hike is not good enough. “It’s definitely a no-go,” he said on “Face the Nation.” “We’ve made that very clear.” Fain reiterated his argument that in the last four years alone, the CEO pay at the Big Three has climbed 40%. “They’re already millionaires,” Fain said. “Our demands are just. We’re asking for our fair share in this economy and the fruits of our labor.”
Avinger stock rockets off a record low after launch of vascular disease treatment system
Shares of Avinger Inc. skyrocketed 63.5% on heavy volume in morning trading Monday, enough to make them the biggest gainers trading on major U.S. exchanges, after the medical device company announced the commercial launch of its Tigereye ST, an image-guided catheter-based system for the diagnosis and treatment of vascular disease. Trading volume soared to 26.5 million shares, compared with the full-day average of about 9,300 shares. “This device represents one of the most significant advancements in Avinger’s image-guided technologies for the treatment of peripheral artery disease,” said Chief Medical Officer Jaafer Golzar. “The unique combination of onboard image-guidance, steerability, ease of use, and crossing power expands the number of patients eligible for minimally invasive revascularization,” Golzar added. The stock, which closed Friday at a record low of $4.14, has now shed 58.5% year to date, while the S&P 500
SPX,
has gained 16.1%.
Canopy Growth’s stock slides 10% after it announces private placement of up to $50 million to boost liquidity
Canopy Growth Corp.
CGC,
WEED,
said Monday it has entered agreements with institutional investors for a private placement of up to $50 million as it again moves to boost liquidity. The Canadian cannabis company said it is offering 22.9 million units priced at $1.09 for gross proceeds of about $25 million. Investors have an over-allotment option for up to additional 22.9 million units at the same price at any time on or before Nov. 2. Each unit is equal to one common share plus a warrant to acquire an additional share at a price equal to $1.35 for a period of five years. The stock was down 10% premarket, after adding about 12% on Friday after announcing it would move to file bankruptcy for its BioSteel sports drink unit and narrow the gap for the company’s adjusted losses moving forward.
Lyft’s stock drops after agreeing to pay $10 million civil penalty to settle SEC charge
Shares of Lyft Inc.
LYFT,
dropped 3.0% in morning trading Monday, after the U.S. Securities and Exchange Commission said it charged the ride-share company for failing to disclose a board member’s rose in the a shareholder’s sale of about $424 million worth of stock before the company went public. Lyft agreed to pay a $10 million civil penalty and agreed to a cease-and-desist order, without admitting or denying the SEC’s findings. The SEC’s order said before Lyft’s initial public offering in March 2019, a board member brokered a deal for the sale of shares by a shareholder, that Lyft was a participant in the deal as it approved the transaction and that the board member received millions of dollars in compensation for his role in the deal. Lyft’s stock has gained 6.7% over the past three months, while shares of rival Uber Technologies Inc.
UBER,
have advanced 8.1% and the S&P 500
SPX,
has tacked on 0.85.