5 Amazing Dividend Stocks to Buy for Secure Income in 2024 (2024)

The Wall Street has seen some of the best stock market rallies in 2023, with the three main U.S. stock indices — the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite — tracking remarkable growth so far this year. After a weak 2022, the S&P 500 index has returned more than 20% year-to-date 2023, while the Dow Jones Industrial Average and the Nasdaq Composite have gained 13% and 42%, respectively, over the same period.

Despite some spill-overs of economic challenges from 2022, such as rising inflation, supply-chain disruptions and shifts in central bank policies, companies in these indices have demonstrated resilience through 2023, preserving their long-term growth trajectory. Growth of these indices was also characterized by robust economic growth, low unemployment rates and steady consumer spending.

The Federal Reserve's monetary policy decisions remained a focal point for investors in 2023. Throughout the year, the central bank piloted the subtle balance between supporting economic growth and preventing inflationary pressures. Interest rate adjustments and quantitative easing measures were closely monitored, as they had direct impacts on market sentiment and asset valuations.

Looking into 2024, experts expect the year to be crafted by considerable shifts in the economic outlook, uncertainties in interest rates, concerning the path of inflation, geopolitical developments and the unpredictable twists and turns of the upcoming presidential election season. With these events on the cards, it is difficult to predict the market’s future movement.

In the ever-changing landscape of the stock market, investors often seek strategies that provide stability and consistent returns. Here, dividend-paying stocks emerge as a reliable and strategic choice. Stocks paying regular dividends have historically demonstrated a level of stability during turbulent market conditions.

Companies generally pay out dividends from their profits after securing enough funds for reinvestment in business operations, growth and expansion. This indicates that dividend-paying stocks often possess strong fundamentals, including stable earnings and cash flows, making them less susceptible to extreme market fluctuations.

The regular income stream provided by dividends acts as a cushion, helping investors weather market downturns with more resilience. The dividend aristocrats, companies with a history of increasing their dividends annually for the past 25 years, are safe investment options for the long term.

In the current market environment, with uncertainties abound, dividend investing offers a strategic and prudent approach. By prioritizing stability, income generation, compounding and quality, investors can build resilient portfolios that weather market volatility.

With the help of the Zacks Stock Screener, we have narrowed down on five attractive dividend stocks that sport a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

These S&P 500 stocks have a dividend yield of more than or equal to 3%, as well as a five-year historical dividend growth rate of more than 0. Additionally, a Value Score of A or B and consistent sales growth make these stocks attractive.

The above-mentioned combination is compelling for investors interested in owning well-known companies with a steady and long-term income, based on stability amid volatility.

3M Company MMM: The Saint Paul, MN-based diversified technology firm has been gaining from its focus on business transformation, which enhances its competitive advantage. 3M’s portfolio reshaping actions are expected to enhance its shareholder value over time. The company’s operational execution, restructuring savings and spending discipline are supporting its margins. Strength in auto OEM (Original Equipment Manufacturer) and medical solutions businesses augurs well for MMM’s growth.

3M pays out a quarterly dividend of $1.50 ($6.00 annualized) per share, with a 5.65% yield at the current stock price. The company’s payout ratio is 66%, with a five-year dividend growth rate of 1.3%. MMM currently has a Zacks Rank #2 and a Value Score of A. (Check MMM’s dividend history here)

Omnicom Group Inc. OMC: The New York-based company is one of the largest advertising, marketing and corporate communications companies in the world. Omnicom, with its diversified presence in advertising and marketing, improves adaptability in a dynamic industry. A rising current ratio signals a positive outlook. OMC consistently rewards shareholders through dividends and share buybacks, while focusing on internal development, and investing in efficiency, data and analytics for revenue growth.

Omnicom pays out a quarterly dividend of 70 cents ($2.80 annualized) per share, with a 3.23% yield at the current stock price. OMC’s payout ratio is 38%, with a five-year dividend growth rate of 2.70%. The company currently has a Zacks Rank #2 and a Value Score of A. (Check OMC’s dividend history here)

Amcor plc AMCR: Based in Zurich, Amcor is a global leader in developing and producing responsible packaging for food, beverage, pharmaceutical, medical, home and personal care, and other products. The company has been focusing on higher-growth, higher value-added, more packaging-intensive segments like healthcare, protein, pet food, premium coffee and hot fill beverage containers. It is positioned to gain from its efforts to expand its presence in high-growth segments and emerging markets. Solid demand in e-commerce, and investments in adding capacity and innovation are expected to aid growth.

Amcor pays out a quarterly dividend of 13 cents (50 cents annualized) per share, with a 5.13% yield at the current stock price. AMCR’s payout ratio is 68%, with a five-year dividend growth rate of 11.6%. The company currently has a Zacks Rank #2 and a Value Score of A. (Check AMCR’s dividend history here)

NiSource Inc. NI: Merrillville, IN-based NiSource is an energy holding company. Together with its subsidiaries, NI provides natural gas, electricity, and other products and services in the United States. NiSource’s consistent investments to strengthen its existing infrastructure, stable return from regulated assets and focus on clean energy are going to drive its performance. NI’s earnings are likely to benefit from the electric and gas rates that came into effect during 2022 and 2023. The company is also gaining from its cost-saving initiatives. NI expects to lower operation and maintenance (O&M) expenses.

NiSource pays out a quarterly dividend of 25 cents ($1.00 annualized) per share, with a 3.77% yield at the current stock price. NI’s payout ratio is 64%, with a five-year dividend growth rate of 5.53%. The company currently has a Zacks Rank #2 and a Value Score of B. (Check NI’s dividend history here)

NRG Energy Inc. NRG: The company is engaged in the production, sale and delivery of energy and energy products and services to residential, industrial and commercial consumers in major competitive power markets in the United States. It has financial and commercial headquarters in Princeton, NJ, and operational headquarters in Houston, TX. NRG’s acquisitions, services to a wide variety of customers, focus on emission cuts and dividend policy will boost its long-term growth objectives.

NRG Energy pays out a quarterly dividend of 38 cents ($1.51 annualized) per share, yielding 3.02% at the current stock price. NRG’s payout ratio is 29%, with a five-year dividend growth rate of 77.7%. It currently has a Zacks Rank #2 and a Value Score of B. (Check NRG’s dividend history here)