Stock Market Rally Is 2 Years Old: 3 Passive Income Favorites Are November Bargains

24/7 Wall St. Insights

• The long AI-driven rally has many tech stocks overvalued.
• Passive income dividend stocks should remain in favor as interest rates come down.
• Passive income is simple: own quality dividends that pay you for doing nothing. Don’t miss out on our brand-new “7 Things I Demand in a Dividend Stock” report. It includes two A++ dividend stocks and how to spot future dividend winners that can put your returns on hyperdrive. Access two legendary, high-yield dividend stocks Wall Street loves.

Most dividend investors seek solid passive income streams from quality dividend stocks. Passive income is a steady stream of unearned income that does not require active traditional work. Shared ideas for earning passive income include investments like dividend stocks, bonds, mutual funds, real estate, and additional income-producing side hustles.

The more passive income can help cover costly and rising costs like mortgage, insurance, taxes, and other expenses, the easier it is for investors to put away money for future needs as they build to retirement.

After nearly two years of one of the biggest stock market rallies in decades, many top companies have become exorbitantly overpriced and are trading well above their underlying fundamentals. Given that many of our readers are looking for solid passive income stocks that are still reasonably priced, we screened our blue chip passive income database, looking for bargains, and found three companies that still offer value and dependable passive income. All are rated Buy at top Wall Street firms we cover.

Why do we cover dividend stocks?

Dividend-paying stocks can be an attractive way for an investor to have one’s cake and eat it, too; in addition to potential price appreciation, an annual dividend reduces an investment’s cost basis and provides timely additional cash income, especially in the current ongoing inflationary climate.

AT&T

The legacy telecommunications company trades at a reasonable 9.4 times estimated 2025 earnings and has undergone a lengthy restructuring while lowering its dividend, which still stands at 5.20%. AT&T Inc. (NYSE: T) provides worldwide telecommunications, media, and technology services. Its Communications segment offers wireless voice and data communications services.

AT&T sells through its company-owned stores, agents, and third-party retail stores:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• Security
• Cloud solutions
• Outsourcing
• Managed and professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers.

In addition, this segment offers residential customers broadband fiber and legacy telephony voice communication services.

It markets its communications services and products under:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.

Bristol-Myers Squibb

This top company remains a solid pharmaceutical stock to own long-term and trades at an inexpensive 7.5 times estimated 2025 earnings while offering a hefty 4.60% dividend. Bristol-Myers Squibb Co. (NYSE: BMY) discovers, develops, licenses, manufactures, and markets pharmaceutical products worldwide.

The company offers products in:

• Hematology
• Oncology
• Cardiovascular
• Immunology therapeutic classes

Bristol-Myers Squibb products include:

• Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma
• Opdivo for anti-cancer indications
• Eliquis, an oral inhibitor indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE
• Orencia for adult patients with active RA and psoriatic arthritis, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis

The company also provides:

• Sprycel for the treatment of patients with unresectable or metastatic melanoma
• Abraxane, a protein-bound chemotherapy product
• Implicit for the treatment of multiple myeloma
• Reblozyl for the treatment of anemia in adult patients with beta-thalasso

CVR Energy

This Ichan Enterprises subsidiary is a perfect idea now, trading at 4.6 times the estimated 2024 earnings and paying shareholders a strong 8.07% dividend. CVR Energy, Inc. (NYSE: CVI) engages in petroleum refining, marketing, and nitrogen fertilizer manufacturing activities in the United States with its subsidiaries.

It operates in two segments:

• Petroleum
• Nitrogen Fertilizer

The Petroleum segment refines and supplies gasoline, crude oil, distillate, diesel fuel, and other refined products. It also owns and operates a coking medium-sour crude oil refinery in southeast Kansas and a crude oil refinery in Wynnewood, Oklahoma, as well as supporting logistics assets. This segment primarily serves retailers, railroads, farm cooperatives, and other refiners/marketers.

The Nitrogen Fertilizer segment owns and operates a nitrogen fertilizer plant in North America that utilizes a pet coke gasification process to produce nitrogen fertilizer products and a nitrogen fertilizer facility in East Dubuque, Illinois, that produces nitrogen fertilizers in the form of ammonia and urea ammonium nitrate (UAN), nitric acid, and liquid and granulated urea.

This segment primarily markets UAN products to agricultural customers and ammonia products to agricultural and industrial customers.

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