Looking For Yields: Hess Midstream, Altria And Fifth Third Bancorp Are Consistent Moneymakers

David Kirakosyan

Thu, Sep 26, 2024, 6:00 AM 5 min read

Companies with a long history of paying dividends and consistently hiking them remain appealing to income-focused investors. Hess Midstream, Altria and Fifth Third Bancorp have rewarded their shareholders for several decades and recently announced dividend increases. Furthermore, these companies offer high dividend yields of up to 8%.

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Hess Midstream

Hess Midstream LP (NYSE:HESM) owns, operates, develops and acquires a diverse set of midstream assets and provides fee-based services to Hess and third-party customers. It conducts its business through three operating segments: gathering, processing, storage and terminating and exporting.

The company has raised dividends every year for the last seven years. As per its most recent dividend announcement on July 29, Hess increased the quarterly dividend from $0.6516 to $0.6677, equal to $2.67 annually. The dividend yield on the stock currently stands at 7.44%.

"Through a combination of our 5% targeted growth in annual distributions per Class A share and incremental increases in our quarterly distributions following unit repurchases, we have increased our distribution per Class A share by approximately 48% since the first quarter of 2021 and by over 10% in 2024 year to date on an annualized basis," said Jonathan Stein, Chief Financial Officer of Hess Midstream.

Hess Midstream’s annual revenue (as of June 30) is $1.4 billion. As per the company’s most recent earnings announcement on July 31, it posted quarterly revenues of $365.50 million, above the consensus of $365.16 million, while EPS of $0.59 missed the consensus estimate of $0.63.

Hess Midstream updated its full-year 2024 net income guidance to $650 – $700 million and reiterated its full-year adjusted EBITDA guidance of $1,125 – $1,175 million.

Altria

Altria Group, Inc. (NYSE:MO) manufactures and sells smokeable and oral tobacco products, maintaining the leading position in cigarettes and smokeless tobacco in the U.S. and the number-two spot in machine-made cigars. The company’s Marlboro brand is the leading cigarette brand in the U.S. with a 42% market share in 2023.

Altria's most recent dividend hike announcement on Aug. 22 increased the quarterly dividend from $0.98 to $1.02 per share, equal to an annualized rate of $4.08 per share. "Today's dividend increase is consistent with our progressive dividend goal that targets mid-single digits dividend per share growth annually through 2028. This increase marks the 59th dividend increase in the past 55 years," mentioned in the news release.

The current yield on the dividend stands at 8%.

As of June 30, the company’s annual revenue was $20.3 billion. According to Altria's most recent earnings announcement on July 31, it posted Q2 2024 revenues of $6.21 billion, better than the consensus of $5.40 billion, while the EPS of $1.31 came in below the consensus estimate of $1.34.

The company narrowed its guidance for 2024 full-year adjusted diluted EPS to $5.07 to $5.15, representing a growth rate of 2.5% to 4.0% from a base of $4.95 in 2023. It expects 2024 adjusted diluted EPS growth to be weighted to the year’s second half.

Check out this article by Benzinga, highlighting Wall Street’s most accurate analysts' insights on three defensive stocks, including Altria, with over 7% dividend yields.

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Fifth Third Bancorp

Fifth Third Bancorp (NASDAQ:FITB) is a diversified financial services company with over $200 billion in assets and numerous full-service banking branches and ATMs throughout Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina.

Fifth Third Bancorp has raised its dividends every year for the last 14 years. On Sept. 12, the company's most recent dividend announcement, its Board of Directors increased the quarterly dividend by 6% to $0.37 per share or $1.48 annualized, with a yield of 3.45%.

Check out this article by Benzinga to learn if Fifth Third Bancorp stock is worth watching, post a 6% dividend hike.

As of June 30, Fifth Third Bancorp's annual revenue stood at $8.2 billion. According to the company's most recent earnings release on July 19, the company generated revenues of $2.09 billion, compared to the consensus of $2.11 billion and an EPS of $0.86, compared to the consensus estimate of $0.85.

Hess Midstream, Altria and Fifth Third Bancorp are good choices for investors seeking reliable passive income. Their dividend yields of up to 8% and long history of consistent hikes make them attractive to income-focused investors.

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