Income investments are looking attractive after the market’s recent rally in 2024. April was a challenging month for the market, with the S&P 500 index dropping 4%, erasing some previous gains. Despite this, the market is still up 8% in early May, down from an 11% gain in the first four months of the year.
Investors who focus on the long-term are excited about the volatility as it presents opportunities to buy stocks at discounted prices. Here are some large dividend stocks that are worth considering at the moment:
1. Procter & Gamble (PG 0.49%)
Procter & Gamble stock has not been favored on Wall Street during the recent tech-driven rally. Despite only a 5% increase since early 2023, P&G has shown resilience in a tough market. With organic sales rising 3% in the fiscal third quarter, the company continues to perform well. Management has also raised earnings outlook and plans to return $15 billion to shareholders through dividends and buybacks in 2024. Reinvesting dividends can maximize returns over the long term.
2. Walmart (WMT 0.07%)
Walmart has shown strong operating results, with accelerating growth, rising margins, and increased cash flow. The company’s operating income is on the rise, and its e-commerce business has crossed the $100 billion revenue mark. A recently hiked dividend, along with growth potential in tech avenues, makes Walmart an attractive long-term investment.
3. Coca-Cola (KO 0.60%)
Coca-Cola offers one of the highest dividend yields on the Dow, with a 3% payout to shareholders. The company has a dominant market position and a history of consecutive dividend raises. Despite concerns about growth deceleration, Coca-Cola has strong sales growth and profitability. With growth potential in energy drinks, alcoholic beverages, and sparkling waters, Coca-Cola presents a good opportunity for investors. At about 6 times sales, investors can gain exposure to a dominant business with growth potential and a 3% immediate income stream.