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Many companies have de-emphasized paying dividends over the years. That's one reason the dividend yield on the S&P 500 is only around 1.3% these days.
However, several companies offer higher-yielding payouts for those seeking a bit more dividend income. Here are four top dividend stocks yielding around 4% these days that you can confidently buy for dividend income this April.
Agree Realty
Agree Realty (NYSE: ADC) has a 4% dividend yield. The real estate investment trust (REIT) focuses solely on owning single-tenant net lease and ground lease retail properties. Those lease structures provide very stable cash flow. Meanwhile, the REIT pays very close attention to the credit quality of its tenants, as 68.2% of its rent comes from clients with investment-grade credit ratings. It routinely upgrades its portfolio by reducing its exposure to lower-quality tenants by selling those properties and replacing them with new ones leased to higher-quality tenants.
The REIT's focus on tenant quality has paid off for investors. Agree Realty has grown its payout at a 5.6% compound annual rate over the past decade. It's in an excellent position to continue growing its dividend in the future. Its low dividend payout ratio and conservative balance sheet provide ample financial flexibility to continue investing in income-generating properties leased to high-quality retailers.
Chevron
Chevron's (NYSE: CVX) dividend yields 4.1%. The oil giant generates lots of cash flow. Its integrated business model, consisting of oil and gas production, midstream assets, and refining and chemicals operations, helps mute some of the volatility of oil prices. Last year, Chevron produced $15 billion in free cash flow, easily covering its $11.8 billion in dividend payments.
The oil giant has a terrific record of growing its dividend. It delivered its 38th consecutive annual dividend increase this year. Chevron has grown its payout faster than the S&P 500 and nearly double the rate of its closest peer over the past five years. That growth should continue. Chevron expects to produce an additional $10 billion in annual free cash flow by 2026, fueled by expansion projects and its structural cost savings initiatives.
Kinder Morgan
Kinder Morgan (NYSE: KMI) has a 4.1% dividend yield. The natural gas pipeline giant produces more than enough cash to cover its high-yielding payout. The company expects to generate nearly $5.9 billion of cash flow from operations this year. That would be enough to cover its capital expenditures of $3.1 billion and dividend payments of $2.6 billion, with more than $150 million to spare. That excess free cash flow will help strengthen Kinder Morgan's already rock-solid balance sheet.