The stock market sell-off has provided investors with an opportunity to buy high-quality dividend stocks at higher yields. ExxonMobil, PepsiCo, and Prologis are three elite dividend stocks that now yield around 4%. ExxonMobil’s shares have fallen more than 15% from their high earlier this year.
#MarketAlert | USA: 10-year Treasury yield tops 4.5%; Biggest weekly jump since 2001#WallStreet #Visa #Pfizer #Amgen #AmericanExpress #Mastercard #Nasdaq pic.twitter.com/hf4AAOAXC9
— ET NOW (@ETNOWlive) April 14, 2025
This has driven the oil giant’s dividend yield to around 4%. The company increased its dividend by 4% this year, extending its annual growth streak to 42 years. ExxonMobil generated $34.4 billion in free cash flow, easily covering its $16.7 billion dividend payout.
Stock split, preferential allotment – Latest update from Gensol Engineering's EGM https://t.co/5Q1ApDlFfs
— ET NOW (@ETNOWlive) April 14, 2025
We came into the year with US stocks as one of the most expensive ever.
The USD was expensive on PPP.
Risky bonds like 10/30 US gov, as well as corporate and junk bonds, had little yield spread vs. Treasuries.
Foreign stocks were much cheaper.
Fast forward a few months or…
— Meb Faber (@MebFaber) April 11, 2025
The company aims to increase its annual cash flows by $30 billion by 2030, providing room for future dividend increases. PepsiCo’s stock is down nearly 10% from its peak this year, pushing its dividend yield to 3.8%.
Dividend opportunities amid market sell-off
The company will increase its dividend by another 5% in June, extending its growth streak to 53 years and making it a Dividend King. PepsiCo generated $12.5 billion in net cash from operating activities last year, easily covering its $7.6 billion dividend payments. Prologis stock has lost nearly a quarter of its value this year, driving the REIT’s dividend yield to around 4.3%.
The company has increased its payout for 12 straight years, growing it at a 13% compound annual rate over the past five years. Prologis has a strong balance sheet, allowing it to invest in development projects and make acquisitions. It is benefiting from strong demand for logistics real estate driven by the growing adoption of e-commerce.
The stock market sell-off is providing investors with the chance to buy high-quality dividend stocks and lock in their higher yields. This positions investors to generate more income in the future and boost their total return potential. Investing in these elite dividend stocks during a market downturn can provide a steady income stream and potential for capital appreciation as the market recovers.
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