The stock market experienced a tumultuous time over the past two years, with highs and lows that left investors bewildered. After plunging into bear territory in 2022, the market rebounded last year with double-digit gains. Despite the uncertainty, there are reasons to be hopeful about the upcoming year. Historical data suggests that bear markets are often followed by more favorable market conditions and that periods of strength, or bull markets, tend to last longer than periods of weakness. This presents an opportunity for investors to explore dividend stocks which provide passive income during all economic conditions. Five top dividend stocks to consider investing in 2024 are Johnson & Johnson, Coca-Cola, Abbott Laboratories, AbbVie, and Medtronic.
Johnson & Johnson (JNJ) stands out as a Dividend King, having increased its dividend payment for over 50 consecutive years. With a dividend of $4.76 per share, representing a yield of 2.95%, J&J is placed to offer investors passive income while also projecting potential growth. Coca-Cola (KO) has also proven itself as a Dividend King and offers a dividend of $1.84 per share, with a yield of 3.06%. The company’s solid moat and rising free cash flow make it a strong contender for long-term investment. Abbott Laboratories (ABT) boasts a dividend of $2.20 per share with a yield of 1.93%, surpassing the S&P 500’s yield. The company’s diversified healthcare business and solid free cash flow make it an attractive option for investors looking for reliable passive income. AbbVie (ABBV) and Medtronic (MDT), are also promising dividend stocks investors should consider, as they have demonstrated resilience in the face of challenges and offer stable dividends.
These five companies have shown consistent dividend growth and are known for their well-established businesses. This makes them appealing choices for investors looking for reliable passive income in 2024. Whether the market experiences growth or faces difficult times, dividend stocks offer a relatively stable source of income for investors. Therefore, considering the unique benefits and potential of these companies, it’s worth exploring these top dividend stocks to buy and bolster your financial portfolio in the new year.