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Dividend stocks, long adored by investors for their reliable stream of income and ability to enhance portfolio returns, have a storied history dating back to 1930. According to The Hartford Funds, dividend-yielding stocks on the S&P 500 that consistently increased dividends since then have never experienced a decade of losses. Through times of global turmoil, these income-generating stocks have stood the test of time unparalleled. They weathered world wars and pandemics, proving to be steadfast investments unlike any other in the market.

It’s not surprising. Companies offering dividends are typically well-run entities that have navigated various business and economic cycles successfully. Embracing sound management practices and a conservative approach, they have thrived, rewarding shareholders with a share in their profits and success.

Exploring the Road Less Traveled with Ford (F)

While Tesla gets most of the limelight in the electric vehicle space, Ford (NYSE:F) is quietly asserting itself as a strong contender in the industry. Despite a modest 0.8% uptick in second-quarter U.S. sales, with a cumulative 3.6% increase over the first half of 2024, the real growth story lies in hybrid vehicles and EVs for Ford.

Ford’s hybrid sales witnessed an impressive 55.6% surge in the quarter, driven by the popular Maverick model which constituted nearly 44% of total hybrid sales in the first six months of the year. An astounding 59% of Maverick buyers are categorized as “conquest” customers, indicating a shift from other brands to Ford, drawn by the versatility and adaptability of the truck.

CEO Jim Farley mentioned, “It’s one of our fastest-growing vehicles,” underscoring the success story behind the Maverick. The F-150 hybrid pickups and Escape are also flying off the shelves, further boosting Ford’s sales performance. Despite its stock rising by 7% in 2024, Ford trades at less than 7 times next year’s earnings, offering an attractive dividend yield of 5.3% annually.

Uncovering a Diamond in the Rough with Benchmark Electronics (BHE)

Thriving in 2024, Benchmark Electronics (NYSE:BHE), a small-cap powerhouse, has seen a remarkable 41% surge in its stock value and stands 51% higher over the past 12 months. Specializing in semiconductor capital equipment manufacturing, Benchmark serves as a stealth player in the artificial intelligence domain. Its services cater to original equipment manufacturers (OEMs) in industries such as aerospace, defense, and medical sectors.

The global proliferation of AI has triggered a sales boom for Benchmark, with a notable 35% increase in aerospace sales complementing a 12% revenue growth in semiconductor sales. Currently sporting a starting yield of 1.7% annually, Benchmark has room for further dividend growth, with a free cash flow (FCF) payout ratio standing at just 24%.

Chasing the Hidden Treasures with Universal (UVV)

Universal (NYSE:UVV), the world’s largest tobacco leaf supplier, is a concealed gem in the investment landscape. Servicing major cigarette manufacturers like Altria, British American Tobacco, and Philip Morris International, alongside China Tobacco International, Universal’s growth trajectory looks promising, particularly with the escalating market for smoking in China.

Boasting a 54-year record of dividend increases, Universal stands out as a Dividend King, having raised dividends at a compounded annual growth rate (CAGR) of nearly 5% over the past decade. With a lush annual dividend yield of 6.8%, the company is diversifying its portfolio to embrace plant-based ingredients and food products, setting the stage for future growth.

Unveiling the Potential of Cardinal Health (CAH)

Cardinal Health (NYSE:CAH), a giant in the medical supplies and drug distribution sector, ranks as the third-largest supplier in the industry. With a substantial $190 billion in U.S. drug sales last year, accounting for a quarter of the market share, Cardinal Health wields considerable influence.

Investors looking for stable income can turn to Cardinal Health, which withstood the test of time, distributing dividends consistently. Promising a dividend yield of X%, Cardinal Health remains a robust contender in the undervalued dividend stocks arena, poised to offer long-term value to investors.