Discover top dividend shares for consistent income

By Tezcan Gecgil, InvestorPlace Contributor

• We explore three dividend stocks with a history of consistent payouts.
• Enterprise Products (EPD): This midstream energy MLP generates a juicy dividend income.
• Crown Castle (CCI): This REIT owns essential cell towers and fiber infrastructure.
• Truist Financial (TFC): The financial services company has a diversified business model.

Income investors on Wall Street favor dividend stocks, especially those that consistently pay high dividends around 5%. These shares offer cash flow from their investments and provide the opportunity to reinvest dividends. In other words, focusing on such dividend stocks potentially means increased immediate earnings as well as long-term wealth accumulation.

So far in 2024, the S&P 500 index has returned over 12% and currently offers a dividend yield of 1.3%. In contrast, the Global X Super Dividend US ETF ($Global X Funds Global X Superdividend U S ETF DIV$), which tracks the performance of 50 of the highest dividend yielding US stocks, has advanced 5%. But its dividend yield currently stands at 6.8%, offering consistent payouts in the current volatility of Wall Street.

Remember, not all dividend stocks are created equal. Therefore, it's crucial to find companies that boast a long history of reliable and growing payouts. Here're today's three dividend stocks if you're looking for passive income shares with long-term capital appreciation potential this June.

Enterprise Products (EPD)

Source: Casimiro PT / Shutterstock.com

First up on our list of dividend stocks is Enterprise Products ($Enterprise Products Partners L.P. EPD$), a master limited partnership (MLP) that operates a vast network of midstream energy infrastructure in North America. EPD specializes in the transportation and storage of oil, refined products and natural gas liquids. Its fee-based business model generates stable cash flow, allowing it to consistently distribute significant dividends to its investors.

In the first quarter of 2024, Enterprise Products reported strong financial performance, driven by contributions from new assets. Total revenues jumped 18.6% to US$14.76 billion compared to the same period in 2023. This growth was fueled by a 17% increase in net marine terminal volumes. Moreover, net income rose by 5% year-over-year (YOY) to US$1.5 billion, or 66 cents per common unit.

Investors have been pleased with the MLP's solid profitability metrics, including a net profit margin of over 10%. Reflecting its strong financial health, management declared a 5.1% increase in the quarterly distribution. As a result, EPD shares currently offer a compelling 7.3% dividend yield.

So far in 2024, EPD stock has appreciated more than 7%. The shares are trading at an attractive 10.6 times forward earnings and 1.2 times sales. Meanwhile, analysts have currently set an average 12-month price target of US$33 for EPD, signaling more than 16% upside.

Crown Castle (CCI)

Source: Casimiro PT / Shutterstock.com

Real estate investment trust (REIT) Crown Castle ($Crown Castle International Corp CCI$) is the next name among our dividend stocks. The Texas-headquartered REIT owns, operates and leases over 40,000 cell towers and 90,000 route miles of fiber across major US markets. In other words, Crown Castle plays a vital role in facilitating wireless connectivity.

In April, Crown Castle released a mixed quarterly earnings report for the first quarter of 2024. Adjusted funds from operations (AFFO) declined 9.5% to US$749 million compared to the prior-year period due to higher interest expenses. AFFO per share dropped 10% to US$1.72 as site rental revenues declined 2% YOY.

Management reported a 5% consolidated core organic growth for the quarter, with significant growth in towers and small cells. In addition, CEO Steven Moskowitz expressed optimism about the long-term future of communications infrastructure. The REIT plans to focus on enhancing customer relationships, managing cash prudently and finding ways to operate more efficiently.

Crown Castle is known for its attractive dividend yield and consistent growth. The high 195% payout ratio indicates that Crown Castle returns a significant portion of its earnings to shareholders. Currently, CCI shares boast an attractive 6% dividend yield.

Yet, CCI stock has dropped nearly 12% year-to-date (YTD) and has a price-to-book (P/B) ratio of 7.4x. Wall Street maintains a favorable outlook on Crown Castle shares with a 12-month median price forecast of US$110 for CCI, or an 8% upside potential.

Truist Financial (TFC)

Source: T. Schneider / Shutterstock.com

Rounding out our discussion of dividend stocks is Truist Financial ($TRUIST FINANCIAL CORPORATION TFC$), which operates in the southeastern and mid-Atlantic regions of the country. Truist offers consumer, commercial and investment banking, wealth management and specialized lending among other financial services and products.

According to the most recent earnings metrics, Truist's total revenues declined 8.8% to US$4.87 billion compared to the prior-year quarter. Adjusted net income fell 13.5% YOY to US$1.22 billion. Meanwhile, adjusted diluted earnings per share (“EPS”) dropped 14.3% to 90 cents. Nonetheless, management is confident in its ability to grow its core banking business as it expands its client base through its commercial, consumer, payments, investment banking and wealth platforms.

Recently, Truist has announced the completion of the sale of its remaining stake in Truist Insurance. The fifth largest insurance brokerage in the US was sold to an investor group led by private equity firms. This transaction, valued at US$15.5 billion, will likely help strengthen the bank's financial position and provide strategic flexibility for reinvestments.

Since January, TFC stock has declined marginally by about 1%. Meanwhile, the shares are now trading at an attractive P/B ratio of 0.94x, a strong metric for the banking industry. We note that Truist Financial has demonstrated consistent dividend growth over the years and its shares currently boast a 5.7% dividend yield. Finally, analysts have a 12-month price target of US$43 for TFC, signaling around 18% upside.

On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Tezcan Gecgil, PhD, began contributing to InvestorPlace in 2018. She brings over 20 years of experience in the US and UK and has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Publicly, she has contributed to investing.com and the UK website of The Motley Fool.