Steady Returns Ahead: 3 Dividend Stocks for Long-Term Investors

Stocks to buy

Dividend stocks at the present juncture might seem an overly conservative approach. After all, the market still appears enamored with artificial intelligence, cryptocurrencies and other risk-on investment categories. Nevertheless, diversification into passive-income plays could be prudent.

Earlier this month, Bank of America reported that investors pulled $4.4 billion from tech stocks in the week ending March 6. That’s the biggest-ever outflow. Also, investors began pouring money into investment-grade bonds, the biggest inflow since September 2020.

If the smart money sees safety and value in passive income, you might want to do your own investigation. Below are intriguing dividend stocks to kickstart your research.

Waste Management (WM)

person depositing a plastic water bottle in a yellow plastic recycling bin. The bin is in a line-up of several other blue and green bins.

Source: shutterstock.com/PhotoByToR

While Waste Management (NYSE:WM) isn’t the most generous of dividend stocks available, it’s easily one of the most relevant. Per its public profile, the company engages in the provision of environmental solutions to residential, commercial, industrial and municipal customers in the U.S. and Canada. In other words, it collects your trash and that’s a super-critical business.

Essentially, Waste Management – both the company and the industry – represents an inevitability. Consumers consume and the byproduct of this consumption is waste. And that waste has to go somewhere. Unsurprisingly, the enterprise has consistently delivered the goods. There may be some misses occasionally. However, in fiscal 2023, WM’s average positive earnings surprise came out to 3.83%.

For the current fiscal year, the consensus calls for earnings per share of $6.93 atop revenue of $21.75 billion. Last year, the company posted EPS of $6.19 and sales of $20.43 billion.

Now, the forward dividend yield is only 1.42%. Still, there are few companies where the business model is pretty much assured to generate a consistent revenue stream. So, in that regard, WM ranks among the top dividend stocks for long-term investors.

Chevron (CVX)

Chevron (CVX) logo on gas station sign with "diesel" and "food mart" written underneath

Source: Sundry Photography / Shutterstock.com

Undoubtedly, mentioning Chevron (NYSE:CVX) as one of the long-term dividend stocks is incredibly controversial. After all, we’ve been told by authorities and experts that electric vehicles are the future. However, rental car operator Hertz (NASDAQ:HTZ) would probably like to have a word with you. Following its EV blunder, the company is backtracking. And it’s not the only one.

Frankly, I don’t want to speak too soon. However, society may be realizing that earlier calls for a comprehensive EV rollout were too ambitious and unrealistic. However, what is realistic is Chevron and the underlying hydrocarbon market. Okay, it did have a stinker of a quarter in Q3, posting EPS of $3.05 against the expected print of $3.75. Other than that, the average positive earnings surprise in fiscal 2023 was 5.1%.

For the current fiscal year, the consensus EPS calls for $12.57 on top of revenue of $200.79 billion. These are disappointing against last year’s metrics of $13.13 per share and sales of $200.95 billion. However, the high-side estimate calls for EPS of $14.55 and revenue of $246.34 billion.

I’m inclined to believe these numbers given the implied 13% upside of the analysts’ price target of $175.53. In either case, the company offers a forward yield of 4.19%, which is quite attractive.

LTC Properties (LTC)

A group of senior people having lunch together in a retirement home, LTC Properties operates senior housing and living facilities

Source: Juice Flair / Shutterstock.com

For those who don’t mind adding a little risk for enhanced reward with their dividend stocks, LTC Properties (NYSE:LTC) presents a tempting proposition. Structured as a real estate investment trust (REIT), LTC invests in senior housing and healthcare properties. Mainly, it accomplishes this through sale-leasebacks, mortgage financing, joint ventures, and structured finance solutions.

To be fair, LTC stock is just a hair below parity in the year so far. That’s not exactly the most charming selling point. However, the fundamentals cannot be ignored. Baby boomers are retiring at a rapid rate and the senior care market should soar as a result. Admittedly, LTC can sometimes present a binary hit-or-miss affair.

For example, in Q1, the REIT posted EPS of 80 cents, beating the 49-cent consensus view. Then, in Q2, it posted EPS of only 15 cents versus the expected 42 cents. However, the average earnings surprise came out to 14.75% for fiscal 2023. In the current fiscal year, analysts anticipate sales of $199.33 million, up 1.1% from last year’s tally of $197.24 million.

Finally, analysts rate shares a hold with a modest price target of $33.83. However, the kicker is that LTC offers a forward yield of 7.08%. It’s something to think about.

On the date of publication, Josh Enomoto 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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