More and more investors are turning to dividend-paying stocks as a dependable way to earn income, especially with the market dynamics starting to shift. Recently, Federal Reserve Chair Jerome Powell mentioned that the Fed is taking a cautious approach to adjusting interest rates, even though the economy is showing some positive signs, like strong retail sales in October. This has led investors to look for steady income options, such as reliable dividend stocks.
In fact, as the post-election leg of the bull market has investors broadening their horizons well beyond the “Magnificent Seven” tech leaders, companies like Kimco Realty Corp (KIM), Perrigo Company plc (PRGO), and Permian Resources Corporation (PR) stand out as compelling investments in industries poised for new growth - and all with healthy yields of at least 3.9% or more, making them great picks for investors focused on income.
Let’s take a closer look at these three buy-rated dividend stocks and see how their unique footing in real estate, healthcare, and energy, respectively, makes them worthy of careful consideration for dividend-seeking investors.
#1. Kimco Realty Corp (KIM)
Kimco Realty Corp (KIM) is a major real estate investment trust (REIT) focusing on open-air, grocery-anchored shopping centers and mixed-use properties across the U.S.
Over the past 52 weeks, the stock has jumped by 36.5%, and KIM is up about 20% on a YTD basis.
With a market value of $17.1 billion and a forward price-to-adjusted FFO ratio of 20.58, Kimco is priced at a premium, meaning the shares are priced for growth. The stock’s forward dividend yield is 3.94%, based on the quarterly payout of $0.25 per share, which makes it appealing for income-focused investors.
Financially, Kimco has done well this year. In the third quarter, net income rose to $128 million ($0.19 per share), up from $112 million last year. Funds From Operations (FFO) increased by 7.5% to $0.43 per share, and Same Property Net Operating Income (NOI) grew by 3.3%.
Occupancy rates hit an all-time high of 96.4%, with small shop occupancy reaching 91.8%. Kimco also raised its full-year outlook for net income to $0.50-$0.51 per share and FFO to $1.64-$1.65 per share, showing confidence in its continued growth.
Kimco’s future looks promising, especially after its recent purchase of Waterford Lakes Town Center in Orlando for $322 million, adding nearly 1 million square feet to its portfolio in a high-demand area. CEO Conor Flynn highlighted that strong supply-demand dynamics and Kimco’s focus on grocery-anchored properties give them an edge, allowing them to boost their financial outlook for the year.
Analysts are generally positive about Kimco’s prospects, with a "moderate buy" rating from 22 analysts: nine recommend a “strong buy,” and 13 suggest holding the stock. The average target price is $25.24, roughly flat with current prices.
#2. Perrigo Company plc (PRGO)
Perrigo Company plc (PRGO) is a global leader in over-the-counter health and wellness products, operating mainly through two segments: Consumer Self-Care Americas and International. They focus on store-brand and branded self-care products like respiratory care and infant formula, supplying major retailers like Walmart (WMT), Amazon (AMZN), and CVS (CVS).
PRGO stock has lagged the broader market in 2024, pulling back 11.7% year-to-date.
With a market cap of $3.82 billion and a forward price/earnings (P/E) ratio of 10.85—much lower than the sector average—Perrigo looks undervalued compared to its peers, as well as its own five-year average multiple of 14.12. The company also offers an appealing dividend yield of 3.93%, and has increased dividends for 22 consecutive years, making it attractive for income-focused investors.
Perrigo’s third-quarter earnings were mixed. Net sales fell by 3.2% year-over-year to $1.1 billion, due to the loss of lower-margin products in its U.S. Store Brand segment. However, adjusted operating income jumped by 21.3% to $182 million, thanks to cost-cutting measures under its "Project Energize" program. Adjusted earnings per share (EPS) rose by 26.6% year-over-year to $0.81, beating expectations. Perrigo kept its full-year adjusted EPS guidance at $2.50 to $2.65, but expects sales growth to be on the lower end of its previous forecast.
On the strategic front, Perrigo recently completed the sale of its HRA Pharma Rare Diseases business for up to €275 million, which will help reduce debt and allow Perrigo to focus more on its core self-care business.
Analyst sentiment is positive, with four analysts covering the stock: three rate it as a "strong buy," while one suggests holding it. The average price target is $36.00, offering about 26.7% upside from Monday's close.
#3. Permian Resources Corporation (PR)
Permian Resources Corporation (PR) is an independent oil and gas company that focuses on the Delaware Basin, one of the top U.S. shale regions. The company acquires, develops, and operates high-quality oil and gas assets while keeping costs low and efficiency high.
PR stock is up 15% on a YTD basis, holding its own amid a volatile year for commodity prices.
With a market cap of about $13.02 billion and a forward P/E ratio of 11.08, the stock looks attractively priced compared to its sector peers, suggesting that now is a good time to scoop up PR shares at a relative discount. The company also offers a generous dividend yield of 6.11%, which should appeal to investors in search of passive income.
Permian Resources had a strong third quarter in 2024, with crude oil (CLF25) production hitting 160.8 MBbls/d and total production at 347.1 MBoe/d. They spent $520 million on capital expenditures but still managed to generate $303 million in adjusted free cash flow. The company’s focus on cutting costs paid off, too, as they reduced their drilling and completion costs by 16%, helping boost profitability. Looking ahead, management raised their full-year production guidance by over 4%, showing confidence in their ability to keep delivering strong results.
The company’s growth prospects got an extra boost in September 2024 when they completed an $818 million acquisition from Occidental Petroleum (OXY), adding around 29,500 net acres and key infrastructure in Reeves County, Texas. This deal is expected to add about 15,000 barrels of oil equivalent per day (boed) to production in Q4 2024, and should help drive long-term growth through greater scale and operational efficiencies.
Analysts are very optimistic about PR stock, with an average rating of "strong buy" from the 19 in coverage. Of those, 16 recommend a “strong buy,” one suggests a “moderate buy,” and two say “hold.” The average price target is $18.84, which suggests about a 20.1% upside from Monday's close.
Conclusion
If you're looking for solid dividend stocks with yields of around 4% or more, Kimco Realty, Perrigo, and Permian Resources are all worth considering. Each offers a unique mix of stability and growth potential across different critical sectors—real estate, healthcare, and energy—giving you a diversified approach to steady income.
