5 Magnificent Dividend Champions Are September Passive Bargains

24/7 Wall St. Perspectives

• Interest rates are on the way down and dividend stocks are in favor.
• Passive income investors will be big buyers as bond yields collapse.
• Passive income is simple: quality own dividends that pay you for doing nothing. Don’t miss our new report “7 Things I Look for in a Dividend Stock.” Includes two A++ dividend stocks and how to identify future dividend winners that can put your yields on hyperdrive. Access two legendary high-yielding dividend stocks that Wall Street loves.

The most dividends investors aim to secure a reliable passive income stream from quality dividend stocks. Passive income is constant unearned income that does not require traditional active work. It is a financial goal that can be achieved through various means, including investments, real estate, or side hustles.

All the more passive income can help cover rising costs such as mortgage, insurance, taxes and other expenses, making it easier for investors to keep money for future needs as they build toward retirement.

A huge win passive income hand is to invest in Dividend Champions. These companies have raised their dividends for 25 years and more, but can be of any market capitalization size. These can range from small-cap to large-cap and do not have to be in the S&P 500 like the Dividend Aristocrats.

I screened current list, looking for reasonably priced stocks with significant upside potential for the rest of 2024. Five top companies look like bargains, all rated Buy at top Wall Street firms.

Why do we cover Dividend Champions?

The key to investors with this group is that they do not have to be in the S&P 500 and can be of any market capitalization size. This opens the door to many new stocks that have paid reliable dividends for over 25 years.

Enterprise product partners

Enterprise Products Partners is an American natural gas and crude oil company headquartered in Houston, Texas.

This company is one of the largest publicly traded energy partnerships and pays a dividend of 7.27%. Enterprise Products Partners LP (NYSE: EPD ) provides various midstream energy services, including:

• Assembly
• Processing
• Natural gas transportation and storage, fractionation of natural gas liquids (NGL).
• Import and export terminaling
• Offshore production platform services

The company has four reportable business segments:

• Natural gas pipelines and services
• NGL pipelines and services
• Petrochemical services
• Crude Oil Pipelines and Services

A reason for many analysts that the stock could be the distribution coverage rate. The company’s coverage ratio is well over 1x, making it relatively less risky in the MLP sector.

Eversource Energy

Eversource is an energy provider serving customers in Connecticut, Massachusetts and New Hampshire.

This conservative stock idea it goes off the radar and pays a rich dividend of 4.24%. Eversource Energy (NYSE: ES ) is a public utility holding company that provides energy delivery services.

The company operates through four segments:

• Electric Distribution
• Electric transmission
• Natural Gas Distribution
• Water distribution segments

Stream and share electricity, solar energy installations and natural gas.

The company operates regulated water utilities that provide water service to approximately 241,000 customers.

Serves housing, commercial, industrial, municipal and fire protection customers in Connecticut, Massachusetts and New Hampshire.

NNN REIT

NNN REIT invests primarily in high-quality retail properties, generally under long-term net leases.

This dividend champion is another new idea for investors that pays a hefty dividend of 4.82%. NNN REIT Inc. (NYSE: NNN) invests primarily in high-quality retail properties generally subject to long-term net leases.

On 31 December 2023, the company owned 3,532 properties in 49 states with gross leasable area of ​​approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years.

NNN is one of only three publicly traded REITs have increased annual dividends for 34 consecutive years or more

UGI

UGI owns AmeriGas, the largest propane distributor in the United States.

This dividend champion offers a fat 6.26% dividend and stellar total return potential. UGI Corp. (NYSE: UGI) and its subsidiaries distribute, store, transport and market energy products and related services in the United States and internationally.

The company operates through four segments:

• AmeriGas Propane
• UGI International
• Midstream and marketing
• UGI utilities

It is extended The network of 1,400 propane distribution locations distributes propane to approximately 1.3 million residential, commercial/industrial, motor fuel, agricultural and wholesale customers.

The company distributes liquefied petroleum gas (LPG) to:

• Residential
• Commercial
• Industrial
• Agricultural
• Wholesale
• Motor vehicle fuel customers
• It provides logistics, storage and other services to third-party LPG distributors

In addition, retails natural gas, liquid fuels and electricity to approximately 12,400 residential, commercial and industrial customers at 42,000 locations.

Next, the company distributes natural gas to approximately 677,000 customers in eastern and central Pennsylvania through its distribution system of approximately 12,500 miles of gas pipelines and provides electricity to approximately 62,600 customers in northeastern Pennsylvania through 2,560 miles of lines and 14 substations .

In addition, UGI operates power generation facilities, which include:

• On coal
• Storage supplied with gas
• It works with solar energy
• Installations powered by natural gas
• Natural gas liquefaction, storage and vaporization plant
• Propane storage and propane-air mixing stations
• Rail transshipment terminals

Manages natural gas pipeline and storage contracts; develops, owns and operates pipelines, gathering infrastructure and gas storage facilities.

Universal

Universal is one of the world’s leading tobacco retailers.

While this company The products may not be for everyone, they are in strong demand, have been in business for nearly 150 years and offer shareholders a consistent 6.20% dividend. Universal Corp. (NYSE: UVV) processes and supplies tobacco leaves and herbal ingredients worldwide.

The company operates through two segments:

• Tobacco operations
• Ingredient operations

procured, finances, processes, packs, stores and delivers leaf tobacco for sale to manufacturers of consumer tobacco products.

The company contracts, buys, processes and sells pure, burley and oriental tobaccos, which are used primarily in the manufacture of cigarettes. Dark tobaccos are also used to make cigars, cigarillos, and smokeless and pipe tobacco products.

Universal as well provides value-added services including:

• Blending, chemical and physical testing of tobacco
• Cutting service for various manufacturers
• Manufacture of reconstituted tobacco leaves
• Just-in-time inventory management services
• Electronic nicotine delivery systems
• Smoke testing services for customers

Six high-yield dividend stocks under $25 are passive income kings

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