3 Premium Dividend Stocks to Invest in May 2024

3 Premium Dividend Stocks to Invest in May 2024

As the U.S. economy navigates through a period of heightened volatility and uncertainty, investors are increasingly turning to premium dividend stocks for stability and consistent income. Amidst concerns about slowing economic growth and rising prices, the Federal Reserve’s decision on interest rates remains closely watched.

With speculations of fewer rate cuts than initially anticipated, investors are seeking refuge in assets that offer reliable returns, making premium dividend stocks an appealing choice. Here, we delve into three premium dividend stocks poised to weather the storm and deliver long-term value to investors.

1. Target Corporation (NYSE: TGT)

1. Target Corporation (NYSE: TGT)

Target Corporation stands tall as a beacon of stability in turbulent times. With a market cap of $75.9 billion, Target operates nearly 1,956 stores across the U.S., complemented by its robust digital presence through Target.com.

Target boasts an impressive track record of 55 consecutive years of dividend increases, earning the esteemed title of “Dividend King.” With a dividend yield of 2.66%, the company maintains a healthy payout ratio of 48.6%, ensuring sustainability.

Target’s recent earnings report showcased resilience and growth, with a total revenue of $31.9 billion and adjusted EPS of $2.98, beating analyst forecasts. Management’s forward guidance for fiscal 2024 remains optimistic, further solidifying Target’s position as a dividend stalwart.

2. Republic Services, Inc. (NYSE: RSG)

2. Republic Services, Inc. (NYSE: RSG)

Republic Services, with a market cap exceeding $60.9 billion, leads the environmental services industry with a clientele of 13 million customers. Its comprehensive range of services includes recycling, waste management, and hazardous waste disposal.

Republic Services maintains a conservative dividend payout ratio of 36.6%, ensuring ample room for growth initiatives while rewarding shareholders. Its recent quarterly dividend of $0.535 per share reflects the company’s commitment to shareholder value.

The company’s Q4 2023 earnings exceeded expectations, with adjusted EPS of $1.41 and revenue of $3.8 billion. Management’s fiscal 2024 guidance points towards continued growth, underpinned by double-digit revenue and earnings expansion.

With a conservative dividend payout ratio and a history of returning capital to shareholders, Republic Services presents an attractive premium dividend stocks investing opportunity for income-oriented investors seeking stability and growth potential.

3. The Brink’s Company (NYSE: BCO)

3. The Brink's Company (NYSE: BCO)

The Brink’s Company, valued at approximately $3.9 billion, specializes in secure transportation and cash management services on a global scale. Its diverse clientele includes banks, retailers, and government agencies.

With forward earnings multiple of 11.90 and a dividend yield of 1.01%, Brink’s offers investors an attractive entry point. Its recent earnings performance and fiscal 2024 guidance underscore the company’s growth trajectory and commitment to shareholder returns.

Brink’s stock enjoys unanimous “Strong Buy” ratings from analysts, reflecting a consensus on its growth prospects and undervaluation. With an average price target indicating a 20% upside potential, Brink’s presents an enticing opportunity for premium dividend stocks investors.

Also read: Top Dividend Growth Stocks to Invest in 2024

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