The stock market isn’t the most reliable place, honestly. While S&P 500 companies have potential for growth over time, profits can always take a hit during recessions.
If you’re looking for something more certain and have $1,000 to invest, consider dividend stocks. Here are three strategies to help you profit regardless of stock market fluctuations.
Realty Income
Realty Income is a real estate investment trust (REIT) known for its stable monthly dividend increases. The company has paid dividends for over 55 years, increasing them 134 times since it became publicly traded in 1994. This requires them to distribute 90% of taxable income as dividends, resulting in a yield of around 5%. Realty Income owns 15,500 commercial properties across more than 90 industries, diversifying its portfolio significantly, with grocery stores making up the largest portion.
Last year, Realty Income’s shares increased by 10%, and when you factor in dividends, total returns surpass 16%.
Exxon Mobil
Exxon Mobil has had a strong start this year, gaining 23%, even with some recent dips. With ongoing geopolitical tensions, energy stocks remain of interest, and ExxonMobil should not be overlooked as a solid income stock. The current dividend yield stands at 2.7%, well above the S&P 500 average of 1.1%. They have a solid track record, boasting 43 consecutive years of dividend increases, which bodes well for ongoing profitability. Last year, the company recorded significant profits and cash flow.
ExxonMobil stock has appreciated 38% in the past year, or about 45% when dividends are included.
JPMorgan Nasdaq Stock Premium Income ETF
My personal favorite for income is the JPMorgan Nasdaq Stock Premium Income ETF. This actively managed fund uses a covered call strategy to invest in the Nasdaq-100 companies, selling out-of-the-money call options and distributing the proceeds to shareholders as monthly dividends.
The ETF holds large stakes in top companies like Nvidia, Apple, Alphabet, Microsoft, Amazon, and Meta Platforms. While stock price performance varies, the fund generates income even in down or flat markets. Currently, JEPQ offers a substantial yield of 11%. In the past year, it has risen 18%, and with monthly dividends, the total return soars to 32%.
