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3 stocks with a dividend above 5% for a stable pension

Charles Sainsbury
22. 3. 2024
4 min read

At a time when bonds come with attractive offers, it can be hard to resist temptation. But what if there's a better alternative that combines steady income with potential growth? Here are three dividend stocks you should consider as part of your portfolio for retirement income.

At a time when income stability is key for long-term investors, dividend stocks with yields above 5% represent an attractive investment option. These stocks not only offer stable income, but also have growth potential, which is especially important when fighting inflation and seeking long-term financial security.

3M $MM-0.3%

3M's a global conglomeratethat researches, develops and manufactures a wide range of products and technologies including tapes, protective masks and medical devices. The company has recently settled with a number of controversies and legal matters involving defective products that may have negatively impacted its reputation and stock.

MMM

3M

MMM
$91.05 -$0.25 -0.27%
Target Price
150.62 (+65.43% Upside)

With a current dividend yield of 6.5%, this is one of the high dividend stocks that attracts investors. After the stock price fell 50% from its 2021 high, 3M has successfully dealt with a number of controversies and legal issues. This process of clearing up legal issues has helped restore investor confidence, and the current P/E ratio of less than 10 makes 3M The company recently announced a 5% increase in its payout, which is consistent with the trend of dividend increases in recent years. These dividend payouts are supported by the company's substantial free cash flow, which is $5 billion annually.

MMM

3M

MMM
$91.05 -$0.25 -0.27%
1 Day
+0%
5 Days
+0.52%
1 Month
-1.41%
6 Months
-12.68%
YTD
-15.89%
1 Year
-13.61%
5 Years
-53.71%
Max.
+2,124.04%

In addition, analyst estimates indicate that 3M's target stock price is around USD 106 per share, which represents a potential 14.5% upside from the current price. This growth projection, coupled with a high dividend yield of 6.5%, makes 3M an interesting investment for investors looking for a combination of stable income and growth potential.

Simon Property Group $SPG-1.4%

Simon Property Group is a global real estate company specializing in the operation of shopping centers and retail destinations around the world. With a current dividend yield of 5,2 % it offers an attractive way to generate passive income from real estate investments. In the past year, the company has seen its payout growth dividend payout of 3.1%, contributing to long-term income growth for investors.

SPG
$140.35 -$2.04 -1.43%
Target Price
162.45 (+15.75% Upside)

In addition Simon Property Group has demonstrated its stability in turbulent times. Despite concerns about the future of shopping centers, the company has been able to maintain its dividend payout thanks to a 3.1% increase in rents over the past twelve months. This move helps to protect investors from the impact of inflation, a key factor for long-term sustainability.

SPG
$140.35 -$2.04 -1.43%
1 Day
-0.01%
5 Days
+2.96%
1 Month
+6.19%
6 Months
+33.09%
YTD
+6.5%
1 Year
+26.29%
5 Years
-13.15%
Max.
+629.5%

Last but not least, Simon Property Group is interesting for its growth potential. Given its current price, SPG has still has room room for further growth, making this an attractive investment for investors looking for long-term stability and growth potential.

Brookfield Renewable $BEP-2.4%

Brookfield Renewable is one of the leading players in the renewable energyspecializing in the generation, distribution and operation of renewable energy sources, including hydro, wind, solar and bioenergy around the world. With a current dividend yield of 5,8 % BEP is an attractive investment for investors seeking stable retirement income. The company recently increased its dividend payout by 5%, indicating a solid financial position and a commitment to maintaining and increasing income for its investors.

BEP
$20.01 -$0.50 -2.44%
Target Price
40.33 (+101.55% Upside)

In addition, it has Brookfield Renewable has significant growth potential. The company's stock is trading much lower compared to its all-time high price, meaning there is room for future appreciation. With an average annual dividend payout growth of 5% and inflation hovering between 2% and 3%, BEP provides investors with the opportunity to beat inflation and provide stable income for their portfolios.

BEP
$20.01 -$0.50 -2.44%
1 Day
-0.02%
5 Days
+2.29%
1 Month
-8.43%
6 Months
-6.37%
YTD
-12.38%
1 Year
-18.22%
5 Years
+40.22%
Max.
-23.68%

Analytical estimates show that investors can expect price increases Brookfield Renewable's share price in the coming years. With historical data and growth trend dividend payouts, BEP appears to be an attractive investment. For investors seeking a combination of stable income and growth potential in the renewable energy sector, Brookfield Renewable represents a an attractive opportunity.

Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always conduct a thorough analysis of your own.

Source.


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