Dow Jones – Stocks Paying Highest Dividends in 2024
Most investors have been fixing their attention on the NASDAQ and “growth stocks” which have outperformed the market in 2023. However, as the NASDAQ’s best performers reach all time highs, investors are also looking to mitigate risk by investing in “high dividend paying stocks” which may not significantly decline in adverse market conditions. In addition to this, investors look at the “defensive stocks” category.
The Dow Jones is associated with defensive stocks, and the benefits of this was seen in last year’s crash. In 2022, following the Ukraine-Russia conflict and consecutive interest rate hikes, the NASDAQ fell more than 33%. In comparison, the Dow Jones only declined 8.30%. Therefore, the Dow Jones will be vital for individuals fearing a crash in 2024 or believing the market is buying above its “intrinsic value”.
Dividend payments are one of the main methods of profiting from the stock market, particularly within the Dow Jones. A dividend is a sum paid to shareholders out of the company profits or asset accounts, normally every 3 months. The Dividend Yield is always in the spotlight as it shows the amount being paid in comparison to the investment size. For example, if a company paid $1 in 2023 and investors bought for $100, the dividend yield is 1%.
Stocks with the highest Dividend Yield as we enter 2024:
- Walgreens Boots Alliance – 9.55% Dividend Yield
- Verizon Communications – 7.12% Dividend Yield
- 3M Company – 6.18% Dividend Yield
- IBM – 4.27% Dividend Yield
The top 3 stated above pay extremely high dividends, but the dividend yield is high because the stocks have declined. The top 3 highest dividend paying stocks have depreciated in 2023. Walgreens Boots Alliance has almost halved in 2023 so far (-45%). Walgreens Boots Alliance could potentially be a profitable investment for investors if the new CEO Tim Wentworth is able to improve the company’s sales and profit margin.
The company has managed to improve its revenue over the past 12 months, rising from $33 billion to $35.40 billion, although the earnings per share continues to disappoint and has dropped to $0.69 per share. However, investors cannot ignore the 9.55% dividend yield. Even if the stock does not increase, but is able to maintain its value, a 9.55% return from dividends is modest.
Investors can look for a high dividend yield, but a stock which has performed well in 2023. A good example of this is IBM, which has the fourth highest dividend yield within the Dow Jones. IBM stocks witnessed the highest dividend yield from stocks which appreciated in 2023. IBM stocks rose by 9.90% this year and also pays a dividend of 4.27%, more than three times higher than the NASDAQ.
Stocks at HFM > https://www.hfm.com/sv/en/trading-instruments/cfd-stocks
NASDAQ – Best Performing Stock of 2023
The best performing stock within the NASDAQ in 2023 is NVIDIA which has risen a whopping 237% so far. The stock has also risen more than 17% in the past 30 days alone. The stock remains a buy or a hold for most hedge funds and analysts. However, one of the main concerns is if buying sentiment may weaken at such high prices.
The main price drivers for NVIDIA stocks which have triggered a high demand is the current AI trend and the company witnessing revenue rising more than 200% and net income more than 1000%. However, some fundamental factors may pressure the stock slightly over the next coming month. Despite the company’s positive report and overall buy signals from technical indicators, some developments are putting pressure on stocks, such as deliveries of the H20 artificial intelligence chips to China being delayed due to problems with the complexity of their integration. According to information from an unnamed source, the first batch will now be sent in February to March.
Therefore, if the stock witnesses some downward pressure, it can provide an opportunity for investors to invest at a slightly lower price. According to analysts, for as long as the AI trend continues and required chips and interest rates decline in 2024, the stock has the potential to perform well.
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Michalis Efthymiou
Market Analyst
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