Many investors tend to favor dividend stocks, and for good reason. Whether you’re just starting out or nearing retirement, including steady dividend stocks in your portfolio can be quite beneficial.
If you’re new to investing and have several years until retirement, consistent dividend stocks can significantly enhance your returns. By reinvesting your monthly or quarterly dividends back into your portfolio, you can harness the power of compounded returns.
On the flip side, if you’re already retired, dividend stocks can provide a dependable income source. This income allows you to cover your essential expenses without drawing too heavily on your savings. It’s a nice way to help ensure your retirement years are both enjoyable and secure.
However, pinpointing the best dividend stocks can be quite the challenge. To make things a little easier, I used a stock screener to filter down the options. I was looking for established companies, so I set a minimum market capitalization of $1 billion. From there, I sought companies with revenue growth of at least 20% and annual price increases of a minimum of 10%. Lastly, I wanted to focus on stocks with a dividend yield of at least 1.75%.
Toronto Dominion Bank
Toronto Dominion Bank, which oversees TD Bank, operates across the U.S. from the northeast down to Florida. It’s one of the largest banks in Canada and ranks as the sixth largest asset holder in North America, boasting nearly 28 million customers.
The bank’s revenue for the second quarter hit around $22.9 billion, a 66% increase from the start of the year, bolstered by a 10% stake sale. This comes on the heels of a $3.1 billion fine due to a money laundering investigation in 2024.
While the fines have posed challenges for shareholders, the company appears to be turning a corner. Funding from the Schwab sale, which raised $8 billion, helped stabilize TD Bank’s stock price. This year has shown a 39% increase, particularly accelerating since April, and Yahoo! Finance has suggested buy or hold ratings.
Investors may also take comfort in the fact that Toronto Dominion shares yield 4.1%, with room for further growth since they still trade 13% below their all-time high.
Carlisle Group
The Carlyle Group is a global investment firm that managed $453 billion in assets by the end of the first quarter, marking a 6% increase from the prior year.
They focus on managing investments that enable private equity funds and companies to enhance their operations and profitability. Since its inception, Carlyle has invested in over 20,000 companies, completing more than 425 aggressive investments.
For the first quarter, revenue reached $973.1 million, an increase from $688.4 million the year before. Net income was $130 million, nearly double the $65.1 million recorded in the first quarter of 2024. Additionally, the company offers a dividend yield of 2.7%, and its stock price has appreciated by 16% this year.
Fair Holding
Equitable, based in New York, specializes in insurance and financial services for individuals and small businesses. They have over 3 million clients and assets totaling over $1 billion, up from $975 million a year ago.
The company primarily focuses on retirement planning, offering a range of life insurance products and long-term care services, along with asset management solutions. So far this year, their stocks have seen a growth of 13%, providing a dividend yield of 1.7%.
