Investors often view income and growth as mutually exclusive.
But, some companies defy this dichotomy. In fact, three dividend powerhouses emerge as top choices for 2024. They embody resilience, financial strength, consistent distribution growth, operational efficiency, and a sustained dividend history. Essentially, these stocks offer reliable investment opportunities in an unpredictable market.
So, to those who wish to start investing in stocks, let’s look at three high-growth plus dividend-paying stocks. Resiliently enduring a lot of breakthroughs, they’ve stood strong and tall through periods of past turbulence.
For those looking to start a portfolio, let’s examine three of the best options to choose right now.
Restaurant Brands (QSR)
Restaurant Brands International (NYSE:QSR) benefits directly from increased consumer spending, thanks to its diverse brand portfolio.
The company’s portfolio of fast food banners includes Burger King, Tim Horton’s, Popeye’s Louisiana Kitchen, and Firehouse Subs. In the company’s most recent quarter, Restaurant Brands reported earnings per share of 90 cents and revenue of $1.84 billion. Notably, same-store sales growth rang in at 7% year over year (YOY). While slightly below expectations, the company’s strong same-store sales growth indicates promising long-term growth potential.
Despite easing prices for U.S. consumers, fast-food establishments have seen a 0.4% monthly and 5.4% yearly increase in menu prices, outpacing overall inflation and grocery prices. This contrasts with consumer prices remaining steady, providing a positive signal after over two years of significant increases, with a 3.2% rise in the past 12 months.
Finally and perhaps most importantly, all consumers need to eat. And in times of economic turmoil, fast food outlets are often the place consumers land to dine. Thus, those worried about economic uncertainty on the horizon ought to give this stock a look right now.
Apple (AAPL)
In the dynamic realm of momentum stocks, Apple (NASDAQ:AAPL) has surged more than 50% year to date (YTD).
Impressively, AAPL earns a moderate buy consensus among analysts, with a target around $198 per share. This optimistic outlook reflects a modest potential increase. However, some strong growth drivers from India’s expanding affluent class and resilient iPhone sales could support continued valuation growth. These factors are buoyed by a robust iOS ecosystem and services revenue rebound after recent price adjustments.
Despite disappointing hardware results, the company’s clear win was seen in its services arm, which includes the App Store and Apple Music. This higher-margin segment is crucial for Apple’s future, indicating that the recent quarter’s challenges are temporary.
Apple dominates the smartphone market with 1 billion customers. Its Services division, including the lucrative App Store, contributed over 25% of the total revenue, hitting $22.31 billion in Q4 2023. Despite a dip in overall sales, new M3 chips are expected to drive a rebound. I remain bullish on this stock over the long-term, and while some near-term downside could be seen, I’d view dips as buying opportunities from here.
Pepsi (PEP)
PepsiCo (NASDAQ:PEP) stands out as a strong long-term investment.
The company boasts a resilient, globally diversified business, evident in its recent quarter’s strong performance. Despite a recent dip in its stock price, PEP stock offers passive income potential with a stable 3% dividend yield. This makes the snack food maker an attractive addition to portfolios for both income and capital growth over the next decade.
PepsiCo demonstrates a positive shift with a 6.7% YOY revenue increase, reaching $23.45 billion. Non-GAAP earnings per share at $2.25 exceed expectations, emphasizing the company’s resilience. Initiatives include Ghost Kitchens, eco-friendly delivery trucks, and strategic investments in global agriculture.
Over time, investors will reap the benefits of continued strong demand for Pepsi’s products.
On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
