Three strong dividend stocks you can buy under $50
With these three stocks, you can start building your investment portfolio with wisdom and perspective.
This article aims to broaden your horizons and provides an in-depth look at three attractive stocks that not only offer solid investment opportunities, but are also easy to understand for novice investors.
Altria Group $MO-0.3%
Altria Group stands out as a strong player in the market due to its resistance to changes in smoking. Despite the decline in smoking rates in the U.S., Altria maintains a strong position thanks to its Marlboro brand and its ability to offset lower sales by raising prices. Its remarkable track record of 58 dividend increases over the past 54 years demonstrates a strong commitment to shareholder payouts.
Despite the average expected share price growth in the coming years, the high dividend yield of 9.7% is an attractive attraction for investors seeking long-term stability. While Altria may not offer meteoric growth, its ability to generate steady income through dividends and resilience in turbulent market conditions make it an attractive choice for investors.
Altria is struggling to cope with the gradual decline in tobacco consumption and is emphasizing price increases, demonstrating its ability to adapt to changing market conditions. The stable dividend payout ratio (79%) and the historical practice of dividend increases provides investors with confidence in the company's ability to maintain its dividend policy. For investors seeking stable, long-term income, $MO-0.3% stock may be an ideal choice.
Hormel Foods $HRL+0.0%
Hormel Foods stands out in the food industry as a company with a long history of growth and resilience to turbulent market conditions. With brands like SPAM, Hormel has steadily strengthened its position in the market. Its remarkable track record of dividend increases over 57 years demonstrates a long-term commitment to creating shareholder value. With a payout ratio of 76% and a stable 3.5% dividend yield, Hormel Foods offers an investment opportunity with a combination of growth and income.
Hormel Foods has been able to remain competitive through innovation and diversification of its food product portfolio. With average expected earnings growth of 4.7% per year , the company has the potential to generate stable returns for investors.
Kinder Morgan $KMI-0.6%
Kinder Morgan is a key player in the energy sector with an extensive network of oil and gas pipelines across North America. The company occupies a strategic position in the midstream sector, which protects it from commodity price fluctuations that affect other energy companies. The company has a long history of dividend increases and the current dividend yield is 6.4%.
Kinder Morgan is currently experiencing a period of steady growth and its management expects U.S. natural gas production to grow in the coming years. With an eye on the future and medium-term earnings growth expectations, the company has the potential to continue to provide investors with a solid dividend yield.
Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always conduct a thorough analysis of your own.