Stocks to buy

Dividend stocks are great for your retirement, and when you have a dependable dividend stock, you can count on a monthly or quarterly payout that can make all the difference in your returns.

Some investors will use dividends as an income stream, particularly when they are already retired. Dividend payouts are a great way to give you some extra income. I always appreciate a company that takes care of its shareholders by paying a respectable dividend.

Other investors will reinvest those dividends into their portfolios, where they can grow their positions even quicker and build out their portfolios. These investors are usually pre-retirement, but the practice can lift your investments and make your retirement more comfortable.

But to count on this kind of income, it’s essential that your dividend stocks be consistent and reliable. The worst thing an income investor can face is to find out that their quarterly payment is cut or, even worse, vanishes.

You don’t have to worry about that kind of scenario with the following stocks. They all have good grades in my Portfolio Grader and my Dividend Grader tool.

Mondelez International (MDLZ)

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Mondelez International (NASDAQ:MDLZ) is a snack-food company cooking up some pretty tasty returns. And the dividend is just the icing on the cake.

Mondelez has some popular brands, including Oreo cookies, Cadbury candies and Toblerone chocolate. Revenue and earnings are strong as the company is riding some price increases to improved profitability.

Revenue in Q2 was $8.5 billion and earnings per share was 76 cents, both better than analysts’ expectations for $8.19 billion and 69 cents EPS.

The company offers a dividend yield of 2.2%, with increases in the last 11 years. With a payout ratio of 48%, the dividend seems secure.

MDLZ stock is up 13% this year. It has “A” ratings in both the Portfolio Grader and Dividend Grader.

ConocoPhillips (COP)

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Upstream oil and gas company ConocoPhillips (NYSE:COP) probably isn’t the first oil company you think of. But if you’re looking for dependable dividend stocks, then maybe it should be.

ConocoPhillips explores, produces, transports and markets oil, natural gas and liquified natural gas. The Houston company operates in 13 countries, producing 1.79 million barrels of oil equivalent in the first six months of the year.

There’s plenty more where that comes from. COP says it has 6.6 billion barrels of oil equivalent in reserve.

Earnings for the second quarter include $12.88 billion in revenue and $1.94 in earnings per share. Both fell below analysts’ estimates, which isn’t horribly surprising considering that oil prices have been lower this year.

But despite that, the dividends continue to flow. ConocoPhillips distributed $5.8 billion in dividends and buybacks so far this year and plans to distribute $11 billion by the end of the year.

COP has a dividend yield of 1.7% and the payout’s increased annually for the last six years. It gets a “B” rating in the Portfolio Grader and an “A” rating in the Dividend Grader.

Halliburton (HAL)

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I’ve had my eye on Halliburton (NYSE:HAL) for a while now. Thanks to elevated energy prices, the oilfield equipment and services company had a good 2022. And while those prices dipped slightly in 2023, I still think the company’s in good shape.

Halliburton’s revenue continues to be on a steady projected increase. The company reported $20.3 billion in revenue last year and is expecting $23.7 billion this year and then $25.8 billion in 2024.

Q2 earnings came in at $5.8 billion, up 14% from a year ago. And while the company narrowly missed analysts’ estimates for revenue, it managed an earnings beat by recording EPS of 77 cents while the Street expected 75 cents.

HAL stock also provides a dividend yield of 1.6%. The stock is up 38% since mid-May and gets a “B” rating in the Portfolio Grader and an “A” rating in the Dividend Grader.

Broadcom (AVGO)

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Broadcom (NASDAQ:AVGO) is a big company on the verge of getting bigger. The semiconductor company has a deal to buy cloud computing company VMWare (NYSE:VMW) for $69 billion. The transaction already has a preliminary OK from regulators in the U.K.

I like the deal for Broadcom because of what it means for the company’s work in artificial intelligence.

AI, particularly generative AI, is the hot sector on Wall Street right now, and any company worth its salt is working on ways to incorporate AI into its processes.

VMWare helps integrate multi-cloud systems, which are getting more important as more companies work on AI and embrace a cloud networking system. And Broadcom says that its semiconductor revenue from AI businesses should grow from 15% to 25% next year.

Broadcom stock is up more than 90% this year and has a dividend yield of 2%. It gets “A” ratings in both the Portfolio Grader and the Dividend Grader.

Scorpio Tankers (STNG)

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Based in Monaco, Scorpio Tankers (NYSE:STNG) is an international shipping company. It transports refined petroleum products and crude oil by sea.

The company operates a fleet of 112 tankers with an average fleet age of less than eight years. The company says keeping a modern, efficient fleet helps make it a good corporate citizen. It has lower greenhouse gas emissions per unit of material transported. And it takes its ESG responsibilities seriously, meeting or exceeding ESG-related guidelines.

This should be a good year for shippers like Scorpio. The International Energy Agency says global oil demand is projected to hit 102.1 million barrels daily this year, which would be a record high.

Much of that growth is projected to be in China, which is easing long-standing Covid restrictions.

The company reported Q2 revenue of $329.3 million and net income of $132.4 million, or $2.40 per share.

It also provides a dividend yield of 2%.

STNG stock can be volatile. You can expect plenty of hills and valleys as the stock price will fluctuate with the energy market. But as a dividend stock, STNG is reliable. It gets a “B” rating in the Portfolio Grader and an “A” rating in the Dividend Grader.

Paccar (PCAR)

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Based in Bellevue, Washington, Paccar (NASDAQ:PCAR) designs and manufactures premium heavy- and medium-duty trucks. Its brands include Kenworth, Peterbilt and DAF.

In addition to its dealer network of more than 2,200, Paccar operates parks distribution centers to supply aftermarket customers. And it has a financial services arm that provides financing and leasing of more than 180,000 trucks and trailers, with total assets of $13 billion.

With Paccar’s deep well and the manufacturing, sales, leasing and financing of large trucks, Paccar is an essential force in interstate transportation of materials and goods. It helps keep the economy going.

Results for the second quarter included $8.88 billion in revenue and earnings of $1.22 billion, with a net income of $2.33 per share. That beat analysts’ expectations for $8.28 billion in revenue and EPS of $2.14,

PCAR stock is up 28% this year and pays a dividend yield of 1.2%, increasing annually for the last 12 years. It gets “A” ratings in both the Portfolio Grader and the Dividend Grader.

Phillips 66 (PSX)

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Phillips 66 (NYSE:PSX) is another energy company on our list. The Houston multinational company serves aviation customers, operates fueling stations, and makes fuels and lubricants.

It also manufactures chemicals for various uses, including personal care, pharmaceutical, industrial agriculture and automotive.

Earnings for the second quarter were announced in early August. Phillips reported revenue of $35.74 billion, beating analysts’ expectations for $34.55 billion. Earnings per share of $3.87 beat estimates of $3.54.

The company also returned more than $1.8 billion to shareholders through dividends and share repurchases and reiterated its goal of returning between $10 billion and $12 billion to shareholders by the end of the year.

PSX stock is up 15% in the last month and has a dividend yield of 3.7%. It gets a “B” rating in the Portfolio Grader and an “A” rating in the Dividend Grader.

On the date of publication, Louis Navellier had long positions in COP, STNG, PCAR and PSX. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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