Dividends are a great way to receive regular returns on your investment while also generating passive income that can grow over time. By reinvesting dividends into the stocks that pay them, you can increase your shares and compound your portfolio’s growth. Here are four dividend stocks that you should consider adding to your portfolio:
1. Dover Corp. (NYSE: DOV) is a company that manufactures equipment and components. Despite a slight decrease in revenue and net income in 2023, Dover’s free cash flow increased significantly, allowing the company to raise its dividend for the 68th consecutive year. With expectations of continued free cash flow growth, Dover is poised to increase its dividend further.
2. Parker-Hannifin (NYSE: PH) is a motion and control technologies company with a strong track record of dividend increases. The company reported solid financial results in fiscal 2024, including a 10% increase in its quarterly dividend. With a projected free cash flow of $3 billion for the year, Parker-Hannifin is well-positioned to maintain its dividend-boosting track record.
3. Coca-Cola (NYSE: KO) is known for its iconic beverages and reliable dividend increases. The company saw revenue and net income growth in 2023, leading to a 5.4% increase in its quarterly dividend. With a track record of free cash flow generation and healthy demand for its products, Coca-Cola is a dependable dividend stock.
4. Altria Group (NYSE: MO) is a tobacco maker that sells popular cigarette brands. The company has consistently raised its dividends over the years, with 2023 marking its 58th consecutive year of dividend increases. Despite a slight dip in free cash flow in Q1 2024, Altria remains committed to mid-single-digit percentage annual dividend growth through 2028.
Consider adding these dividend stocks to your portfolio for potential long-term growth and income.