Dividend stocks aren’t just a great way to earn a regular second income from investing, the income they generate can boost your overall portfolio returns! The fact is, a consistent dividend can be responsible for as much as 20%, 30% even 50% of the returns you make on a stock.

In tough times investors tend to hold on to these shares and sell the non-dividend payers. This makes dividend payers less volatile – and often increases demand for them even when the market is doing badly.

So, if you’re looking to generate consistent income every year in your portfolio, then you need to be ready to add these two dividend stocks to your portfolio.

Dividend Stocks to watch 2024

2024 Dividend stock to watch #1: Clicks ’USP is not just great customer value – but fantastic shareholder value too… Check out this dividend yield!

In 1969, Clicks (JSE: CLS) opened its first store.

Ten years later, it listed on the JSE with a market cap of a mere R10 million.

Since listing, Clicks has managed to grow turnover from R100 million to over R41 billion today, while boosting its market cap to over R66 billion!

The astounding growth of Clicks is due to its simple strategy of offering great value to customers through a wide range of products and competitive pricing.

Today, Clicks boasts over 880 stores in SA and a further 49 in neighbouring countries. In addition, Clicks is SA’s largest retail pharmacy chain with over 700 pharmacies.

Over the past five years, Clicks has achieved consistent profit and dividend growth.

In 2019, Click generated 675c in full year earnings. In 2023, the company generated 1,044c – that’s 54% increase or a compound annual growth rate of 11.2%.

Meanwhile over the same period, dividends have increased from 445c to 679c – a rise of +52% or a compound annual growth rate of 12.3%. That’s nearly double inflation!

In total, Clicks has returned R8.9 billion to shareholders in dividends and share buy-backs in the past five years!

In short, if you want to generate a consistent growing income for many years to come, then Click’s is a great stock to own.

2024 Dividend stock to watch #2: Barloworld – An unmatched track-record of dividend payouts to shareholders! Definitely one for the bottom drawer…

In 1902, an English solider named Major Ernest (Billy) Barlow borrowed £1,000 to expand his family’s UK business.

The company, named Thomas Barlow & Sons, began operating out of two small rented rooms.

Over the next two decades, they sold woollen goods, blankets, coats and engineering supplies.

By the late 1920s, Caterpillar (the world’s largest construction-equipment manufacturer) appoints Thomas Barlow & Sons as Caterpillar’s dealers for Natal.

Then, over the next 50 years, the company rapidly expanded into motor retail; steel and building materials; handling equipment; consumer electronics and steel manufacturing.

With interests in everything from food to mining, it became a dominant player in many sectors of the South African economy.

By the 90s, the company boasted profits of R1 billion, an employee count of 240,000 people, and 79th position on the Fortune 500 list of global companies.

Over the next three decades, the company…

• Unbundled non-core businesses and changed its name to Barloworld (JSE: BAW).
• Diversified across Europe.
• Acquired Equipment Mongolia and Tongaat Hullett Starch (Ingrain) to add new product ranges in areas where they already operated in.

Barloworld was also further granted Caterpillar dealership franchises in Zambia, Malawi, Mozambique and Angola, giving it coverage of the whole Southern Africa region.

Today, the company’s market cap is R19.8 billion and generates around R40 billion in revenue and R5.6 billion in operating profit.

The demand for commodities (due to green tech etc), will boost the demand for Barloworld’s construction equipment.

Then, Ingrain is Africa’s largest producer of unmodified and modified starch, glucose and related products.

The company produces a wide range of high-quality products for customers across Africa and around the world using maize as raw material.

The products manufactured at the mills are essential ingredients in the manufacturing processes in many industries, such as food and beverages, paper manufacturing, pharmaceuticals, building materials and adhesives. So, there will always be demand!

In Barloworld’s entire history, the company’s paid 188 dividends to shareholders.

In other words, Barloworld’s proven track-record of dividend pay-outs is unmatched.

You can bet these pay-outs will continue well into the future.

If you want to know what dividend stocks I”m buying now, then get a copy of my Retire Rich with Dividends report.

Not a subscriber to Money Morning?
You can get free daily recommendations like these with Money Morning eletter. Just sign up here.