LMT - 3 Super-Safe Dividend Stocks to Buy for 2024 and Beyond
2023-12-29 05:14:00 ET
While dividend stocks can be a great way to generate passive income, they're riskier than fixed-income investments, like bonds and bank CDs. Companies don't have to pay dividends. That's why they are often among the first cuts when companies face financial trouble. Over a dozen companies have cut their payouts in 2023, including former dividend stalwarts Intel and VF Corp .
However, there are a lot of safe dividend stocks out there. Kinder Morgan (NYSE: KMI) , Equinix (NASDAQ: EQIX) , and Lockheed Martin (NYSE: LMT) are three super-safe dividend stocks because they generate contractually secured cash flow and have strong financial profiles. That makes them great options for those seeking to fortify their dividend income in 2024 and beyond.
Kinder Morgan offers investors a hefty dividend that currently yields 6.3%. That puts it among the top 5% highest yields in the S&P 500 , where the average is 1.5%. While a high dividend yield is often a warning sign that a cut could be forthcoming, that's not a risk facing Kinder Morgan's payout.
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3 Super-Safe Dividend Stocks to Buy for 2024 and Beyond