Dividend stocks are a staple for retirement portfolios due to their steady cash flow. Many of these stocks have matured and don’t exhibit high gains.
However, some dividend stocks offer a nice blend of growth and cash flow. You can earn enough payouts to cover living expenses while opening the doors to meaningful gains in the long run.
Dividend stocks can present the best of both worlds to investors by achieving high revenue and earnings growth while having enough room in their balances to hike the dividend each year. These are some of the powerhouse dividend stocks that can push your portfolio higher in 2024.
Walmart (WMT)
When consumers have tight budgets, they look for affordable products and services. During these times, more consumers turn to Walmart (NYSE:WMT). The American retailer has been delivering lower prices for over 60 years and is still growing.
The equity has gained 70% over the past five years and offers investors a decent 1.35% dividend yield. Walmart wrapped up the third quarter of fiscal 2024 by gaining more market share. Revenue increased by 5.2% year-over-year and has repurchased 8.7 million shares year-to-date.
Two notable developments are the company’s growing e-commerce sales and international markets. E-commerce sales jumped by 15% year-over-year, with a strong performance from domestic e-commerce sales. Overall sales were higher in international markets and rose by 10.8% year-over-year.
Advertising makes up a smaller portion of Walmart’s total revenue, but it is a fast-growing segment. The advertising division grew by 20% year-over-year. Walmart is a top-notch blue-chip stock that can continue to deliver gains without sharp volatility.
Broadcom (AVGO)
The semiconductor giant Broadcom (NASDAQ:AVGO) is benefitting from the artificial intelligence tailwind. While Nvidia (NASDAQ:NVDA) is the undisputed leader, Broadcom also produces AI chips and can gain market share.
Even before the AI boom, Broadcom has been a reliable pick. Shares have more than doubled over the past year and have soared by 372% over the past five years. The company offers a 1.60% dividend yield and trades at a 40 P/E ratio. Dividend growth has been stellar, and the company continued the trend by hiking its quarterly dividend from $4.60 to $5.25 per share.
Broadcom has a lot of support on Wall Street and is rated as a “Strong Buy” among 21 analysts. The highest price target of $1,550 implies a 19% upside from current levels.
Many corporations need semiconductors to create functional products, and consumers buy many products with Broadcom’s technology. The firm is on its way to a $1 trillion valuation and is poised to reach it in a few years.
Visa (V)
Visa (NYSE:V) has a low dividend yield but offers high dividend growth. The fintech firm recently bumped its dividend from $0.45 to $0.52 per share, marking a 15.6% growth rate. Visa has growing financials and healthy profit margins that support more double-digit dividend growth rates in the future.
Visa has also outperformed many equities in the stock market. The stock has almost doubled over the past five years and offers stability and growth potential. Consumers will continue to use credit and debit cards during any economic cycle. Visa isn’t exposed to loans, which can limit the company’s downside during economic slowdowns.
Visa reported 9% year-over-year revenue growth and 17% year-over-year net income growth in Q1 FY24. The company also returned $4.4 billion to its shareholders through dividends and stock buybacks. Visa looks poised to power up dividend portfolios for a long time and is on its way to a $1 trillion valuation.
On this date of publication, Marc Guberti held a long position in AVGO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.