3 No-Brainer Dividend Stocks to Buy in 2024

Investors searching for quality dividend stocks for next year have come to the right place.

Dividend stocks may be unappealing compared to a red-hot market. But over time, quality dividend stocks rarely lose their luster — especially when a company has what it takes to grow earnings and the dividend over time. Earnings growth, paired with dividend growth, can boost the investment thesis, which can open the door to capital gains on top of dividend income.

Here’s why Whirlpool (NYSE: WHR), Leggett & Platt (NYSE: LEG), and Starbucks (NASDAQ: SBUX) are three dividend stocks worth buying now.

Whirlpool’s near 6% dividend yield is enticing for investors

Lee Samaha (Whirlpool): The home appliance maker has had a difficult year. Rising interest rates have hit the housing market and consumer spending in general. In addition, ongoing cost pressures have eroded profit margin performance. As such, its earnings per share are set to decline by nearly 20% to $15.71, according to Wall Street estimates.

The bad news is out of the way; it’s time to focus on the stock’s value proposition. In response to weakening market conditions, management is cutting costs and is on track to deliver $800 million in cost cuts in 2023. Management believes there will be some “carryover” in the cost-cutting into 2024.

In addition, Whirlpool is set to sell its European domestic appliance business next year, removing itself from a market it’s struggled in.

While all these operational improvements are taking place, the U.S. housing market looks likely to improve year over year in 2024, not least with the prospect of lower interest rates. Whirlpool’s management is targeting $500 million in free cash flow in 2023, and that will easily cover its $385 million dividend payout. Throw in some margin recovery in 2024 due to costs, exiting unfavorable markets, and the possibility of lower raw material costs, and Whirlpool’s dividend looks…