A dividend stock refers to a company that is known to regularly reward their shareholders with a fraction of their profits on a monthly, quarterly, semi-annually or sometimes even a yearly basis.
Dividend paying companies provide a steady stream of income to shareholders, and many still offer the potential for stock price appreciation. Stability and income generation has always remained a top priority for many investors.
Given ongoing economic uncertainty, investors hunt for dividend-paying stocks that are undervalued, as only companies that have quality fundamentals and a robust foundation have the financial stability to maintain their dividends during questionable economic periods.
Another great aspect of adding dividend stocks to one’s portfolio is the ability to reinvest any dividends paid out by a company, using them to buy more shares (sometimes called ‘DRIP’), and taking advantage of compounding returns.
Best Dividend Stocks June 2024
| Company Name | Stock Symbol | Dividend Yield | P/E Ratio | Dividend CAGR |
|---|---|---|---|---|
| Cheniere Energy Partners LP | CQP | 8.1% | 10.4x | 12.4% |
| Arch Resources, Inc. | ARCH | 6.2% | 9.5x | 46.1% |
| The Wendy’s Company | WEN | 5.9% | 16.7x | 21.1% |
| National Storage Affiliates Trust | NSA | 5.8% | 17.4x | 13.3% |
| Nexpoint Residential Trust Inc | NXRT | 4.8% | 13.5x | 11.0% |
| Carter’s, Inc. | CRI | 4.7% | 10.7x | 10.8% |
Why We Picked These Dividend Stocks
The dividend stocks that have been screened and included in the list below show solid, consistent dividend prospects, strong fundamentals, long profit histories and strong credit ratings. We want to show investors that the best dividend stocks available for trading often still have room to run, while also hedging against too much volatility and generating additional compoundable (when reinvested) income.
The numbered list of such top dividend companies are displayed below:
- Market Cap: 23.278 billion
- Fair Value: $60.79
- Fair Value Upside: 26.4%
Cheniere Energy Partners LP (CQP) is a publicly traded limited partnership primarily involved in the liquefied natural gas (LNG) sector. The company owns and operates the Sabine Pass LNG terminal in Louisiana, which is one of the largest LNG export facilities in the United States. This terminal includes multiple liquefaction trains, storage tanks, and marine berths capable of processing, storing, and exporting LNG.
- Market Cap: 3.045 billion
- Fair Value: $205.61
- Fair Value Upside: 22.3%
Arch Resources Inc. (ARCH) is a leading American producer of metallurgical coal, which is primarily used in steel production, and thermal coal, used for power generation. The company operates a diverse portfolio of mining operations, predominantly located in the United States. Arch Resources focuses on delivering high-quality coal products to global markets, leveraging its strategic location and efficient transportation networks.
- Market Cap: 3.459 billion
- Fair Value: 18.09
- Fair Value Upside: 7.3%
The Wendy’s Company (WEN) is a well-known American fast-food restaurant chain founded in 1969 by Dave Thomas. Wendy’s is famous for its square hamburgers, sea salt fries, and the Frosty, a signature frozen dairy dessert. Headquartered in Dublin, Ohio, Wendy’s operates a global network of company-owned and franchised stores.
- Market Cap: 2.891 billion
- Fair Value: 44.09
- Fair Value Upside: 14.3%
National Storage Affiliates Trust (NSA) is a real estate investment trust (REIT) that specializes in the ownership, operation, and acquisition of self-storage properties. Established in 2013 and headquartered in Greenwood Village, Colorado, NSA is one of the largest self-storage operators in the United States.
- Market Cap: 1.003 billion
- Fair Value: 43.24
- Fair Value Upside: 11.1%
NexPoint Residential Trust Inc. (NXRT) is a publicly traded real estate investment trust (REIT) focused on acquiring, owning, and operating multifamily properties. Headquartered in Dallas, Texas, NXRT primarily invests in Class B and Class C apartment communities in growth markets across the Southeastern and Southwestern United States.
- Market Cap: 2.472 billion
- Fair Value: 81.70
- Fair Value Upside: 20.6
Carter’s Inc. (CRI) is a leading American designer and retailer of children’s apparel, primarily known for its brands Carter’s and OshKosh B’gosh. Founded in 1865 and headquartered in Atlanta, Georgia, Carter’s specializes in clothing, accessories, and related products for babies and young children. The company offers a wide range of items, including sleepwear, playwear, and accessories, known for their quality, comfort, and affordability.
How to Find The Best Dividend Stocks
To start, we focused only on those U.S. stocks that have a market capitalization exceeding $1 billion as well as a significant market share, while presenting stable financial conditions for continuing the growth of their dividend payouts regardless of ongoing macro conditions.
In order to guarantee that we are not buying stocks that are already extremely expensive, a fair value assessment filter was added in the InvestingPro screener, which shows only those stocks that have growth potential going forward, thereby avoiding risks of a sudden, big drop in share price.
Further, a filter for dividend compound annual growth rate (CAGR) of 5 years has also been incorporated in our stock screening criteria, which curates a list of only those companies that are consistently growing their payout ratios at 10% or more.
Here are the steps to finding top U.S.-based dividend stocks easily using Investing Pro:
- Click on the Screener tool.
- Select ‘Dividend Yield’ as a filter parameter on the Screener page, and set the threshold value to greater than 3%.
- Add a P/E Ratio filter and set the range between 0 and 30x.
- Add a further four metrics: Market Cap, Shareholder Yield, Fair Value Upside and Dividend CAGR (5y), setting their range to desired values. You can also follow our stock selection metrics as shown in the screenshot below.
- For U.S.-centric stocks, select ‘United States’ under the ‘Trading Region’ tab drop-down, and make sure to check (select) the ‘Primary Trading Item’ option.
- You can then see the list of all the companies falling in the desired screener filters’ range arranged in a descending order.
