Strong buy dividend stocks stand as a compelling investment idea for those seeking sustainable growth. These stocks not only provide a steady stream of income, but also exhibit strong financial performance.
Investors looking to benefit from the upside should always choose dividend stocks carefully. They can start by paying attention to the company’s dividend yield, dividend payout ratio, strong cash flow and debt to equity ratio. Additionally, a company’s dividend growth history over time should give a good indication of the company’s ability to return cash to shareholders.
Now, let’s discuss the 3 best Strong Buy Dividend Stocks for 2024!
UnitedHealth Group (UNH)
UnitedHealth Group (NYSE:UNH) stands out as a compelling dividend stock for investors seeking growth, stability and income. As one of the largest health insurance providers globally, they’ve demonstrated continued financial strength and consistent dividend growth.
One of their core businesses, OptumHealth, has continued its streak of high double digit sales growth. Optum’s Q3 2023 revenue grew 22% year-over-year (YOY) to $56.7 billion. This led the company to increase their FY23 EPS outlook. Additionally, UnitedHealth Group has proven its ability to generate consistent cash flow from operations.
Over the last decade, the company’s EPS has grown substantially, and has seen a 23% CAGR in its dividend. TipRanks analysts have given UNH a strong buy rating, with 9% upside potential. If you’re looking for strong buy dividend stocks, UnitedHealth Group should be a top consideration.
Mastercard (MA)
Mastercard (NYSE:MA) has exemplified an extraordinary track record and has demonstrated impressive dividend growth over the years. The company has consistently increased its dividend payout ratio, reflecting its commitment of returning capital to shareholders.
Having a reliable stream of passive income is everyone’s dream, and Mastercard can help investors get there. Their financial strength and ability to generate robust cash flows has been one of the business’ key drivers. Adjusted FCF in Q3 2023 hit more than $7 billion in the quarter.
Mastercard projects FY23 EPS to grow approximately 19% YOY. Additionally, TipRanks analysts have given MA a strong buy rating, with 9% upside potential. With more than 20% dividend growth, Mastercard is one of the best strong buy dividend stocks for 2024.
McDonald’s (MCD)
McDonald’s (NYSE:MCD) is no stranger to delivering consistent dividend growth to its shareholders. The company’s strong brand recognition serves as a key differentiator to industry competitors.
McDonald’s payout ratio, which measures a proportion of earnings paid out as dividends, is generally healthy. More recently, the company has eyed further expansion, targeting 50,000 new stores by 2027. The company is currently well capitalized and their growth has investors excited about their loyalty plans long term potential.
In their recent Q3 2023 earnings results, McDonald’s revenue increased 14% YOY to $6.69 billion. EPS saw strong double digit growth of 18%, or $3.17 per share. This resulted in the company declaring a 10% increase in their quarterly dividend to $1.67 per share. TipRanks analysts have given MCD a strong buy rating, making it a strong buy dividend stock to keep on your radar.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions 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.
