The 3 Best Dividend Stocks to Secure a Steady Income in Q2 2024

Given the current market volatility on Wall Street, the best dividend stocks look increasingly attractive to investors seeking stable income. The recent tech correction, which began in mid-July due to valuation concerns, triggered panic selling in early August. As a result, long-term investors are turning to dividend stocks to secure steady income in the second half (H2) of 2024. These companies consistently distribute profits to shareholders, providing a reliable income stream.

Research shows that dividends have contributed significantly to total return, accounting for approximately 85% of the cumulative total return of S&P 500 index since 1960. This trend underscores the value of the best dividend stocks. They are attractive to income-focused investors and those looking to improve their portfolio performance.

Here are the three best dividend stocks to secure steady income in Q2 2024.

Dow (DOW)

Source: Pavel Ignatov / Shutterstock.com

Dow (NYSE:DOW) leads our list of the best dividend stocks. As a global leader in materials science, Dow innovates materials for various high-growth markets, including packaging, infrastructure, mobility and consumer applications around the world.

In the second quarter of 2024, the Dow showed resilience amid a sluggish global recovery. Net sales of $10.9 billion were up slightly sequentially, despite a 4% year-over-year (YOY) decline. Demand grew in key sectors such as packaging, electronics and home and personal care, although lower prices hurt overall revenues. EPS was 68 cents, up 21.5% from the previous quarter but down 10% from last year.

Despite these challenges, Dow’s strong cash generation has allowed it to return $691 million to shareholders while continuing to invest in growth. The company has also invested strategically, highlighted by the recent acquisition of Circulus, a plastic waste recycler. The move enhances Dow’s sustainability efforts and positions it to capture the growing demand for green materials.

Although Dow shares are down 4% in 2024, they offer a 5.4% dividend yield, appealing to income-focused investors. The stock trades at a reasonable 18.8 times forward earnings and 0.9 times sales. Analysts’ 12-month average price of $58 suggests an 11% upside potential for DOW shares.

ExxonMobil (XOM)

Source: Jonathan Weiss / Shutterstock.com

Next on our list of the best dividend stocks is ExxonMobil (NYSE:XOM), global leader in the oil and gas industry. Exxon is involved in every aspect of the oil industry, from exploration to refining, and operates a vast network of gas stations. Exxon hthat it has increased its dividends for 42 consecutive years as a dividend aristocrat.

In the second quarter, Exxon posted impressive earnings results. Total revenue rose 12% year-over-year to more than $93 billion, and adjusted diluted EPS rose 20% to $2.14, thanks to Exxon’s diversified portfolio. Meanwhile, Exxon maintains a strong financial position. For example, it has repaid $3.9 billion in debt YTD and holds $26.5 billion in cash.

Exxon also advanced its sustainability efforts by signing its fourth Carbon Capture and Storage (CCS) agreement. Management aims to remove up to 500,000 metric tons of CO2 annually from CF Industries’ Mississippi site.

Year to date in 2024, XOM shares are up about 19%, supported by a current dividend yield of 3.2%. Shares trade at 13.2 times forward earnings and 1.4 times sales. Wall Street remains bullish, projecting more than 9% upside potential for XOM stock. Exxon enjoys a 12-month average price target of $130.

Global X SuperDividend US ETF (DIV)

Source: Morakod1977 / Shutterstock

We conclude today’s exploration of the best dividend stocks with Global X SuperDividend US ETF (NYSEARCA:DIV). This exchange-traded fund (ETF) provides exposure to 50 of the largest dividend-paying stocks in the United States, focusing on low-volatility stocks.

Launched in March 2013, DIV has made monthly distributions for 11 consecutive years. The top 10 holdings comprise about 25% of its $620 million in assets.

The fund’s industry allocation includes utilities (19%), energy (17%), real estate (16%), tobacco (11%) and telecommunications (7%). The top names in the portfolio are Virtu Financial (NASDAQ:virtue), Telephone and data systems (NYSE:TDS), National Investors in Health (NYSE:IHN), Philip Morris (NYSE:P.M) and Altria Group (NYSE:MO).

Despite the difficult market conditions, DIV has gained nearly 3% YTD and currently offers a dividend yield of 6.4%. Its trailing price-to-earnings (P/E) and price-to-book (P/B) ratios are 13.5x and 1.6x, respectively. With an expense ratio of 0.45%, or $45 annually per $10,000 invested, the fund provides access to high-yielding US stocks. For investors seeking a balance between steady income and capital appreciation potential, DIV is a compelling option to consider in the current market environment.

At the time of publication, Tezcan Gecgil did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

At the time of publication, the responsible editor had (either directly or indirectly) no position in the securities mentioned in this article.