It's the beginning of a new year. And that means many investors are looking for ideas for stocks to buy. The good news is that are plenty to be found.
Quite a few of those ideas for the new year offer dividends of at least 2%. Here are 24 top dividend stocks to buy and hold in 2024 (listed by sector in alphabetical order).
Image source: Getty Images.
Consumer goods
You won't usually find stocks that offer exceptional growth in the consumer goods arena. However, many of them provide great dividends. Four especially stand out to me:
| Stock | Business Summary | Dividend Yield |
|---|---|---|
| 1. Conagra Brands (CAG -0.61%) | Food maker with brands including Duncan Hines, Healthy Choice, and Hunts | 4.9% |
| 2. Hormel Foods (HRL 0.14%) | Food maker with brands including Chi Chi's, Dinty Moore, and Hormel Chili | 3.5% |
| 3. Lowe's Companies (LOW -0.04%) | Large home improvement retailer | 2.1% |
| 4. Target (TGT 0.18%) | Large discount retailer | 3.1% |
Data source: Company websites, Google Finance. Dividend yields as of the time of writing.
What I really like about several of these stocks is their track records of dividend increases. Hormel, Lowe's, and Target are all Dividend Kings with at least 50 consecutive years of dividend increases. Conagra doesn't claim such an impressive streak, but the food giant has grown its dividend significantly in recent years.
Energy
I've included more stocks from the energy sector than any other sector. The reason is simple: There are a lot of energy stocks with fantastic dividends.
| Stock | Business Summary | Dividend Yield |
|---|---|---|
| 5. Brookfield Infrastructure (BIP -0.80%) (BIPC -1.04%) | Owns and operates infrastructure assets including pipelines, data centers, and utilities |
5% (BIP) 4.4% (BIPC) |
| 6. Brookfield Renewable (BEP 0.19%) (BEPC 0.09%) | Leading renewable energy provider |
5.3% (BEP) 4.6% (BEPC) |
| 7. Devon Energy (DVN 0.19%) | Independent oil and natural gas exploration and production company | 6.3% |
| 8. Enbridge (ENB -1.21%) | Midstream energy company that operates pipelines and other assets | 7.4% |
| 9. Energy Transfer (ET 0.12%) | Midstream energy company that operates pipelines and other assets | 9% |
| 10. Enterprise Products Partners (EPD 0.45%) | Midstream energy company that operates pipelines and other assets | 7.5% |
| 11. ExxonMobil (XOM -2.78%) | Large international oil and gas company | 3.7% |
Data source: Company websites, Google Finance, Yahoo! Finance. Dividend yields as of the time of writing.
Brookfield Infrastructure is typically categorized as a utility stock. However, since it operates pipelines, I've included it in the energy group. Several other pipeline operators are in the mix as well. They all offer outstanding dividends or distributions. Their business models also make them less impacted by commodity price swings.
Financial services
Several financial services stocks are attractively valued right now. The possibility of interest rate cuts later this year could hurt these stocks in some ways, but help in others.
| Stock | Business Summary | Dividend Yield |
|---|---|---|
| 12. Ares Capital (ARCC 0.73%) | Leading business development company (BDC) | 9.4% |
| 13. Bank of America (BAC -0.21%) | Large financial services company | 2.8% |
| 14. Goldman Sachs (GS 1.79%) | Large financial services company | 2.9% |
Data source: Company websites, Google Finance. Dividend yields as of the time of writing.
Bank of America and Goldman Sachs are well known, but you might not be as familiar with Ares Capital. I like the stock because of its juicy dividend yield, excellent history of delivering market-beating total returns, and opportunities for the company to provide capital to middle-market businesses.
Healthcare
The healthcare sector has been a longtime favorite for income investors. I think that should change in 2024.
| Stock | Business Summary | Dividend Yield |
|---|---|---|
| 15. AbbVie (ABBV -4.58%) | Large biopharmaceutical company | 3.8% |
| 16. CVS Health (CVS -0.22%) | Large pharmacy retailer, pharmacy benefits manager, and health insurer | 3.3% |
| 17. Johnson & Johnson (JNJ -0.46%) | Large biopharmaceutical and medical device company | 3% |
| 18. Pfizer (PFE 0.55%) | Large biopharmaceutical company | 5.8% |
Data source: Company websites, Google Finance. Dividend yields as of the time of writing.
You might wonder why Pfizer made the list after its dismal performance last year. The big drugmaker's problems are primarily due to the declining demand for its COVID-19 products. However, Pfizer should be able to deliver solid long-term growth with its current portfolio, promising pipeline, and business development deals. In the meantime, its dividend yield is too good to ignore.
Industrials
Only one stock from the industrial sector made my list for 2024. However, I like its long-term prospects -- and its dividend yield.
| Stock | Business Summary | Dividend Yield |
|---|---|---|
| 19. United Parcel Service (UPS 0.14%) | Large shipping and supply chain management company | 4.1% |
Data source: Company websites, Google Finance. Dividend yields as of the time of writing.
Sure, UPS faces some challenges. But its business remains fundamentally solid.
Real estate
If you're looking for high dividend yields, you'll definitely want to check out real estate investment trust (REIT) stocks. I especially like three of them for the new year.
| Stock | Business Summary | Dividend Yield |
|---|---|---|
| 20. Crown Castle (CCI -0.67%) | Owns and operates telecommunications towers and small cells | 5.5% |
| 21. Public Storage Associates (PSA -0.37%) | Owns and operates self-storage facilities | 4% |
| 22. Rithm Capital (RITM 0.81%) | Asset manager focused on real estate and alternative investments. | 9.7% |
Data source: Company websites, Google Finance, Yahoo! Finance. Dividend yields as of the time of writing.
I expect Crown Castle to turn the corner in 2024 after losing Sprint's business following its merger with T-Mobile. Rithm Capital is the dark horse of this group. My prediction is that the stock will keep its momentum going this year and deliver strong total returns.
Technology & telecommunications
Last but not least, a couple of tech and telecom stocks rank on my list of the top dividend stocks to buy and hold in 2024.
| Stock | Business Summary | Dividend Yield |
|---|---|---|
| 23. Broadcom (AVGO 3.84%) | Large semiconductor and infrastructure software maker | 2% |
| 24. Verizon Communications (VZ 1.17%) | Large telecommunications provider | 6.8% |
Data source: Company websites, Google Finance. Dividend yields as of the time of writing.
Verizon appears to be getting back on track after posting solid third-quarter results. Broadcom might be the most surprising pick of all. Its dividend yield is the lowest of any stock on the list. Its valuation is a little high as well after shares nearly doubled last year. However, I like the company's growth prospects and its history of hefty dividend increases.
Emphasis on "and hold"
Note that these aren't just stocks to buy in 2024 and take a profit later in the year. I emphasize the "and hold" part of "buy and hold." These stocks may or may not generate positive gains this year. But I fully expect them to be winners over the long term.
