Why These 7 Stocks With Dependable Dividends as High as 14% Could Soar in 2024
The newest rage in investing, for many who are not chasing artificial intelligence stocks, has been going to the safest possible investments. Short-dated Treasury debt and government-insured money-market funds have seen an explosion in cash infusions, and likely they will continue to gather more as rates for the two-year Treasury and short-dated government debt all yield more than 5%. In addition, many money market funds (insured by the FDIC to up to $250,000) are yielding 4.5% and more with daily liquidity. Certificates of deposit for one to three years are also yielding over 5%, but you can pay a penalty for early withdrawal. All this has come to fruition over the past year and a half as interest rates have soared from 0.0% to 5.5% for federal funds.
The key for stock and bond investors is that inflation, which has spiked some from soaring oil prices, has been pulled way down from 9.1% in the summer of 2022. Eventually, the Federal Reserve will lower interest rates to get the economy moving, likely late in 2024, if not earlier. Investors that have higher-yielding stocks and bonds could see a big rally when those rates start coming down.
We screened our 24/7 Wall St. dividend and value screen for stocks with among the largest dependable dividends that could rally sharply when rates do start to fall. Seven top picks came up, and all make sense for growth and income investors.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Alliance Resource Partners
This is a leader in the thermal coal business and also offers solid diversity. Alliance Resource Partners L.P. (NASDAQ: ARLP), a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States. The company produces a range of thermal and metallurgical coal with sulfur and heat contents.
It operates seven underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania and West Virginia. In addition, it leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana. It buys and resells coal, as well as owns mineral and royalty interests in approximately 1.5 million gross acres of oil and gas producing regions primarily in the Permian, Anadarko and Williston Basins.
Further, the company offers various mining technology products and services, including data network, communication and tracking systems, mining proximity detection systems, industrial collision avoidance systems and data and analytics software.
Investors receive a 14.01% distribution. Benchmark has a $28 target price for Alliance Resource Partners stock. The consensus target is $28.67, and Wednesday’s closing share price was $20.40.
Altria
This maker of tobacco products offers value investors a great entry point now as it has been hit as cigarette sales have slowed. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA enjoys a 51% share of the U.S. cigarette market, led by its top cigarette brand Marlboro.
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