Worried About Political Uncertainty This Election Season? Try Investing In These Dividend Aristocrats
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The U.S. equities have remained highly volatile this election season, as the battle between two of the most influential people in America has caused investors to sit at the edge of their seats. According to CNN, the CBOE Volatility Index has surged by over 9% over the last five days as the stock market digests the implications of the assassination attempt on former President and Republican candidate Donald Trump.
APP News reports that amid surmounting geopolitical tensions worldwide and wars in the Middle East, the person chosen into office will significantly impact the U.S. and global economies and shape the performance of the stock markets.
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Investing in dividend aristocrats – companies that have raised their dividend payouts for at least 25 years in a row – can be fruitful during periods of volatility. Their unwavering commitment to dividend growth can offer a sense of security and a steady income stream, no matter who ends up in the White House. Their long history of dividend payments reflects their ability to manage through various economic and political cycles.
Federal Realty
Federal Realty Investment Trust (NYSE:FRT) is a real estate investment trust specializing in retail and mixed-use properties’ ownership, management, and redevelopment. According to Dividend.com, the S&P 500 company has raised its dividend payouts for 57 consecutive years, making it a Dividend King, a designation for companies that have raised their dividend consistently over 50 years or more.
Notably, REITs must distribute at least 90% of their total earnings to shareholders annually. In its first quarter press release, Federal Realty Investment Trust reported that it has scaled its operations significantly, achieving its highest first quarter leasing volume in the first three months of 2024.
According to Benzinga data, the REIT pays $4.36 in dividends annually, yielding 4.01% on the current price. Over the last four years, the Federal Realty Investment Trust’s dividends averaged at 4.23%.
Franklin Resources
Franklin Resources, Inc. (NYSE:BEN), one of the largest investment management companies in the world, is also a popular dividend aristocrat, having raised its annual dividend payouts for 44 years in a row.
As of June 30, 2024, Franklin Resources reported preliminary month-end assets under management (AUM) of $1.65 trillion, a slight increase from $1.64 trillion at the end of May 2024. The company pays $1.24 in dividends annually, yielding 5.17% on the current price. Moreover, its four-year average dividend yield stands at 4.35%.
Franklin Resources completed the acquisition of Putnam Investments earlier in January to expand its investment capabilities and performance. This could further boost the company’s profit margins, ensuring stable returns for its shareholders.
Trending: Can you guess which type of investments Morgan Stanley says will reach $2.7 trillion by 2027? It even offers up to 20% APY potential to accredited investors.
Chevron
Chevron Corporation (NYSE:CVX), a global energy giant, is a prominent player in the oil and gas industry. Despite the sector’s inherent volatility, the company’s disciplined approach to capital management and operational efficiency has enabled it to maintain a strong dividend track record.
According to Benzinga data, Chevron pays $6.52 in dividends annually, yielding 4.13% on the current share price. Furthermore, the energy giant’s four-year average dividend yield is 4.32%. Chevron has increased its dividend for 37 consecutive years, demonstrating its ability to weather economic cycles and commodity price fluctuations.
Chevron is investing in renewable energy and low-carbon technologies, reflecting a strategic shift toward sustainability. Scotiabank currently has an “Outperform” rating on CVX stock, with a price target of $180, indicating a potential upside of over 11%.
Want Higher Returns? Try Investing in Private Real Estate
While dividend aristocrats are popular among income investors for their reliable payouts, it is wise to note that sometimes, they may fail to deliver the robust market returns that growth investors seek. Furthermore, dividend aristocrats offer little diversification benefits for investors looking to expand their portfolios to hedge the overall market risk. These points are to be considered before making a decision on investment.
Looking For Higher-Yield Opportunities?
The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider.
For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000.
Don’t miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga’s favorite high-yield offerings.
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