The current stock market downturn, with the S&P 500 having fallen 8% from its July peak, has placed stocks on the defensive. However, it is important to remember that the market tends to be bullish more often than not.
History has shown that periods of downturn can provide a prime opportunity for investors to step into long-term positions. This is particularly true for income-seeking investors in search of dividend stocks that have the potential to thrive in the next bull market.
KeyCorp: A Resilient Regional Bank
Among the dividend stocks to consider is KeyCorp, a regional bank that has displayed notable resilience in a tough year for the banking sector. While larger banks can absorb higher borrowing costs and increase spending to attract customers, regional banks often struggle with these challenges.
However, KeyCorp has managed to move forward, despite a turbulent year marked by the liquidity crisis that impacted Silicon Valley Bank and First Republic Bank. The bank’s Q3 numbers indicate a growth in total customer deposits and a relatively low charge-off rate of 0.24% of loans.
Additionally, its dividend yield stands at an impressive 8.3%, having been raised annually for over a decade.
Unilever: A Diverse Consumer Goods Giant
Unilever, a UK-based consumer goods company, is another dividend stock worth considering. The company, which owns popular brands like Dove, Hellmann’s, and Ben & Jerry’s, generates roughly one-fourth of its business from North America.
The remaining three-fourths come from a diverse range of global markets, providing U.S. income investors with a valuable opportunity to diversify their cash flow away from U.S.-based companies. With a dividend yield of just under 3.9% and new CEO Hein Schumacher at the helm, Unilever is poised for potential growth and product improvement.
BlackRock: A Steady Force in Asset Management
BlackRock, known for its iShares family of exchange-traded funds, is another dividend stock to consider. The company manages a range of traditional mutual funds and offers investment-management technology solutions.
BlackRock’s revenue is primarily derived from management fees, providing a consistent source of income that is relatively unaffected by market fluctuations. Over the past decade, BlackRock’s dividend has more than tripled, currently standing at 3.25%.
Despite potential risks, such as investors liquidating their funds, BlackRock remains a reliable option for investors seeking long-term growth and dividends.
Seizing the Bull by the Horns
For income-seeking investors looking to capitalize on the current market downturn, these three dividend stocks—KeyCorp, Unilever, and BlackRock—offer potential for long-term growth and consistent revenue.
Each company has demonstrated resilience in the face of market challenges and provides a unique opportunity for investors to diversify their portfolios while reaping the benefits of steady dividend income. As always, it is important to conduct thorough research and consider your financial goals before making any investment decisions.
