The S&P 500 is down about 7% year to date. Overall, it’s down by nearly a percent in the last six months. And that’s why dependable dividend stocks are crucial for long-term investors looking to grow their wealth in good times and bad.
I’m not saying that growth stocks are a bad thing. I’m just saying that at times like these, you need to make sure you’re in the right growth stocks. And alongside those quality growth stocks, make sure you have some quality dividend stocks as well.
After a multi-year stretch of go-go growth, we’re now entering a new phase of the market. The big money is already rotating out of momentum-driven growth and looking for value again.
That means companies with earnings are gaining favor as interest rates start to climb. And many quality companies with strong fundamentals are dividend stocks. They tend to get overlooked in the good times.
But solid, dependable growth and a dividend to match provide long-term investors a solid base in turbulent times. Here are seven companies that offer that combination:
- Blackstone (NYSE:BX)
- Kearny Financial (NASDAQ:KRNY)
- National Storage Affiliates (NYSE:NSA)
- First BanCorp (NYSE:FBP)
- Greif Inc (NYSE:GEF)
- HP Inc (NYSE:HPQ)
- Global Partners (NYSE:GLP)
Dividend Stocks: Blackstone (BX)
Private equity funds are always in vogue in times of market transition. And the bigger they are, the more popular they become when things get volatile.
BX has a $153 billion market cap, which makes it a significant player. What’s more, the stock has gained 79% in the past 12 months. Yet it still trades at a trailing P/E (price-to-earnings ratio) below 15.
Those kinds of numbers make it very attractive. Its 3.3% dividend may not be keeping up with 7% inflation, but it certainly takes a chunk out of it, especially when growth is a brisk as it is.
BX stock is very popular with institutional investors right now because it’s a heavyweight firm with a diversified portfolio of operations. That’s a comfort right now. And that dividend is rock solid.
This stock has an “A” rating in my Dividend Grader.
Kearney Financial (KRNY)
For more than 135 years, KRNY has been a key player in the financial lives of communities in New Jersey, Brooklyn and Staten Island. Today, it has more than $7 billion in assets, which isn’t surprising since many of those smaller communities are now commuter suburbs into New York City.
And when you’re looking for dependable dividend stocks, one of the key components is your ability to own a company that has a dependable revenue stream and a history of delivering for its customers.
KRNY fits these criteria, even if its market cap sits just below $1 billion. Remember this is an established bank, not a up and coming fintech. The stock has gained 23% in the past 12 months, and rising rates will help its earnings. It also has a P/E below 14, yet delivers an attractive 3.3% dividend.
This stock has an “A” rating in my Dividend Grader.
National Storage Affiliates (NSA)
Storage facilities have been strong since the great market meltdown in 2008. What makes NSA unique among them is it’s operated as a real estate investment trust. It also focuses on secondary and tertiary markets, building ownership interests in regional independent storage companies.
To date, NSA has ownership interests in more than 940 self storage properties in 38 states, plus Puerto Rico. Its largest stakes are growth markets like California, Texas, Florida and Georgia. But aside from the Dakotas, Montana and handful of other more sparsely populated states, it has properties across the lower 48.
Its $7 billion market cap makes it a solid mid-cap stock, which is a great place to be in this kind of market. It has room to grow yet won’t crumble if things get challenging.
NSA stock has gained 57% in the past 12 months, yet it still has an attractive 3% dividend.
This stock has an “A” rating in my Dividend Grader.
First BanCorp (FBP)
If FBP isn’t a familiar name, it’s likely you don’t live in Puerto Rico or the U.S. or British Virgin Islands. That’s where it does its primary business.
And with a booming economy, travel is rebounding. Also, Puerto Rico is also rebounding economically beyond just its tourist business. The digital age means people can live anywhere and still conduct business. Why not do it in the splendor of the Caribbean?
As a significant bank of record in the region, it also has the size — a $3 billion market cap — to use rising rates to its advantage. One thing to know about rising rates is banks love them because they can broaden the spread between what they borrow at and what they lend at. And we’re already there. Coming quarters should be strong for FBP.
FBP stock is up 47% in the past 12 months. And it has gained more than 7% year to date, far outperforming the broad indexes. It also has a nearly 2.7% dividend.
This stock has an “A” rating in my Dividend Grader.
Greif Inc (GEF)
GEF stock has a market cap just under $3 billion. That’s a small mid-cap. But it’s been around since 1877. That means it’s a very core niche player that sticks to its knitting and can weather any storm.
Remember back then the Federal Reserve wasn’t even around to keep the economy remotely stable. Huge booms and busts were regular occurrences. But GEF had a simple, focused formula for success.
It’s a packaging company. And in the age of e-commerce, packaging is a serious growth industry. It may not be as sexy as some of the e-commerce companies, but they depend on GEF to get its goods shipped to consumers.
Even its numbers don’t get your blood pumping, but you’re buying stability, not thrills. GEF stock has gained 16% in the past 12 months, has a 3% dividend and trades at a P/E less than 9.
This stock has an “A” rating in my Dividend Grader.
HP Inc (HPQ)
Before all the hipster devices and super-cool brands of computers today, there was Bill Hewlett and David Packard building computers in their garage. They were the inspiration for the digital world we live in today.
And its one of the oldest computing businesses in the world. That’s not to say it hasn’t been through some significant transitions over the years, especially in the late 20th and early 21st centuries. But it’s still around and it’s doing fine.
It has right-sized the business, spinning off many aspects, and HPQ represents the core personal computer business for consumers and corporate markets.
Today, HPQ stock has a market cap of $41 billion. And even with the chip shortages and supply chain issues, HPQ stock has risen 38% in the past 12 months and 21% in the past three months. Yet it still trades at a P/E of 7 and has a secure 2.7% dividend.
This stock has an “A” rating in my Dividend Grader.
Global Partners (GLP)
Since 1933, GLP has been a family operation. What started as a single storefront selling fuel oil to Boston businesses has become a substantial New England gasoline business that stores, distributes and retails petroleum products.
The company is set up as a limited partnership, so investors are treated like owners and by law share in net profits in the form of dividend payments. And with energy prices continuing to climb, margins for GLP retail and wholesale operations grow. And those profits are passed on in its 8.8% dividend.
GLP stock is up 37% in the past 12 months and 13% year to date. The good times will continue to roll as the economy continues to expand.
This stock has an “A” rating in my Dividend Grader.
— Louis Navellier and the InvestorPlace Research Staff
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