4 Dividend Stocks to Double Up on Right Now -- Including Chevron and Verizon

Facing economic uncertainty and a potentially cooling market, the article suggests several dividend-paying investments for portfolio stability and income. Featured stocks include Chevron (CVX), offering a 4.5% yield and a 38-year dividend growth record despite a higher P/E, and Vici Properties (VICI), a casino-focused REIT with a 5.8% yield, long-term leases, and consistent growth. Verizon (VZ) is also noted for its 6.8% yield and undervaluation, though it carries significant debt and lacks growth prospects. For broader exposure, the Schwab U.S. Dividend Equity ETF (SCHD) provides a 3.8% yield and strong historical performance.

Analysis

Amidst economic uncertainty, characterized by potential tariffs, high inflation, and a projected S&P 500 market breather, the article advocates for a defensive investment strategy focusing on dividend-paying stocks. The general sentiment is moderately positive with a defensive tone, suggesting a shift towards income-generating assets for portfolio stability and consistent shareholder returns.

Chevron (CVX) is highlighted for its robust dividend profile, boasting a 4.5% yield and an impressive 38-year track record of annual dividend increases, with a total shareholder yield of 9.4% including buybacks. Despite its integrated energy model providing resilience, its forward P/E of 18.2, above its five-year average of 13.2, indicates it is not currently a bargain and is better suited for long-term holding.

Vici Properties (VICI), a casino-focused REIT, offers a high 5.8% dividend yield, underpinned by stable revenue streams from long-term (40-year) leases with built-in rent escalators. The company has demonstrated consistent growth, with its dividend increasing from $1 to $1.75 per share, and its forward P/E of 10.8 is below its five-year average of 12.5, suggesting potential undervaluation.

Verizon Communications (VZ) presents an attractive 6.8% dividend yield and appears undervalued with a forward P/E of 8.5, below its five-year average of 9. However, investors should note its significant debt load and limited growth prospects, positioning it primarily as an income play. For diversified exposure, the Schwab U.S. Dividend Equity ETF (SCHD) provides a 3.8% yield and a strong 10-year average annual gain of 11.5%, offering a broad approach to dividend investing.

Key Decisions for Investors

• Consider Chevron (CVX) for long-term income stability and consistent dividend growth, acknowledging its current valuation may warrant a patient investment horizon.
• Evaluate Vici Properties (VICI) for its high dividend yield, stable cash flows from long-term leases, and potential undervaluation based on its P/E ratio.
• Investors prioritizing high current income may look at Verizon (VZ), but should carefully assess its substantial debt and limited growth potential.
• Utilize the Schwab U.S. Dividend Equity ETF (SCHD) for diversified exposure to dividend-growing companies, offering a balance of income and historical capital appreciation.