Target continues to generate sufficient cash to cover its growing dividend. Chevron can support its dividend at lower oil prices while maintaining upside potential if oil prices recover. Texas Instruments is an excellent way to invest in the cyclical recovery of automotive and industrial end markets.

There are two main ways to generate returns from stocks — capital gains and dividends. Capital gains result from how the market values a company, whereas dividends are paid directly by the company to its shareholders. Target, Chevron, and Texas Instruments have been rewarding shareholders with growing dividends but have lost value over the last three years.

Target is facing challenges due to consumer spending pullbacks, declining sales, and PR backlash over diversity policies. Shrink from theft is an ongoing issue affecting investor patience. Despite challenges, Target’s stock is trading at low multiples, remains a cash cow, and offers a high dividend yield.

Chevron’s stock and earnings have fallen due to lower oil prices, but efficiency improvements and investments in production are boosting profitability. The company continues to generate enough cash and earnings to cover its growing dividend. With a 4.6% yield, Chevron is a top energy stock for passive income investors.

Texas Instruments, a semiconductor giant, has seen minimal stock growth despite industry investments in AI. End markets like industrial and automotive are cyclical but offer dividend growth potential. With a 3.5% yield and 22 years of payout increases, TI is ideal for dividend investors seeking a cyclical recovery.

Read more at Yahoo Finance: Don’t Give Up on Dividend Stocks. Investing $7,500 in These 3 High-Yield Stocks Should Help You Generate Over $1,000 in Yearly Dividends.