67 Best Dividend Stocks for Dependable Dividend Growth

best dividend stocks 2023

The company owns roughly 490,000 acres and is in the process of acquiring at least 15,000 more. It should be noted that not one of the five top-yielding stocks in the S&P 500 made it through these screens, so you may be better off with this ETF. After we apply these criteria, we are left with 210 stocks on our list. Please note that at this stage, we have applied our base criteria that are loose enough to keep a wide variety of stocks. However, we will now perform additional filtering to get to the best possible candidates. IBM sells software, technology consulting services and server and data storage solutions.

The acquisition was not well received at first, but the diversification, innovation, and synergies it is adding today is beginning to pay dividends for the company, and investors are beginning to take notice. Like companies that provide goods and services fundamental to human needs for warmth, energy and shelter, those that provide food will always have a ready market for their wares. Dividends provide additional cash, and while the extra money doesn’t solve inflation’s impact entirely, it does make it less painful. We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management.

Indeed, at 63 consecutive years and counting, Cincinnati Financial boasts one of the longest dividend growth streaks of any Dividend Aristocrat. Real estate investment trusts such as Federal Realty Investment Trust (FRT (opens in new tab)) are required to pay out at least 90% of their taxable earnings as dividends in exchange for certain tax benefits. Thus, REITs are well known as some of the best dividend stocks you can buy. The discount retailer, which operates approximately 11,400 stores and e-commerce websites under 54 banners in 26 countries, is a cash machine.

That's the power of being a consumer giant that has been able to adjust itself to changing consumer tastes without losing its core. MDT is able to steer generous sums of cash back to shareholders thanks to the ubiquity of its products. It holds more than 47,000 patents on products ranging from insulin pumps for diabetics to stents used by cardiac surgeons. Mutual fund providers have come under pressure because customers are eschewing traditional stock pickers in favor of indexed investments. However, Franklin has fought back in recent years by launching its first suite of passive exchange-traded funds. Air Products & Chemicals (APD (opens in new tab)) has spent much of the past few years restructuring.

Best Monthly Dividend Stocks For Your 2023 Portfolio

Analysts commonly compare ROIC to a company's weighted average cost of capital. ROIC should be the higher of the two numbers—that means the company is creating value. UPS (UPS) provides transportation, logistics and related services domestically and internationally to consumers and businesses. HP (HPQ) makes desktop and laptop computers plus printers and related equipment for use by consumers and businesses. The company changed its name to HP Inc. from Hewlett-Packard HPQ Company in 2015. Diamondback Energy (FANG) is an oil-and-gas player that acquires, develops, explores and exploits natural gas reserves in Texas' Permian Basin.

As a REIT, the company is obligated to pay out 90% of its taxable profits as dividends. Traditionally, companies that pay dividends (especially steady or growing ones) are larger, more established firms. Newer and growing businesses tend to keep their profits and reinvest them into growth. That’s why you’ll see massive names like Coca-Cola and Procter & Gamble paying dividends while growing tech firms like Uber don’t. Berry Corp. is an upstream energy company exploring oil properties within the U.S. During the first quarter the company announced a doubled dividend of 12 cents per share.

The price action on the day of the print (down 5%) was extreme and perhaps reflective of growing investor frustration that the company has failed to sustainably grow earnings over the past decade. Pfizer's primary production focus is in the areas of vaccines; treatments for diabetes, heart disease, and cancer; and consumer healthcare products. General Dynamics is a global aerospace and defense company working in the public and private sectors. While no stock is immune to losing value, odds are much better with a stable company like Procter & Gamble. If a company is paying a dividend but does not have a reliable income stream, there is the risk that the dividend will be cut or even canceled. To receive a dividend, you must buy stock in a company that pays dividends.

Colgate-Palmolive Company (NYSE:CL)

In that case, you might look for companies with strong growth projections that are committed to generous shareholder distributions. You'd likely lean into real estate investment trusts (REITs) and traditional stocks that pay out variable, earnings-based dividends. In this article, our primary focus is on selecting high-growth dividend stocks. High dividend growth stocks are likely to offer a high dividend growth rate for the next 3-5 years (if not more) but usually do not offer high current yields because of their higher valuations. So, this list may not be appropriate for everyone, but rather for a more selective audience.

Click here to download "Five Dividend Stocks to Beat Inflation," a special report from Forbes' dividend expert, John Dobosz. The company has been raising its annual dividend for 51 years, dating back to 1971. In 2022, shareholders received total quarterly payments of $1.74, up from $1.66 in the prior year.

best dividend stocks 2023

We scoured the lists of Dividend Aristocrats and Dividend Kings stocks and picked the ones that have the highest number of hedge fund investors. These stocks enjoy strong market visibility, display decades of consistent consecutive dividend growth, and have a prominent history of surviving market downturns. This qualifies the following companies as safe investments in a volatile economic environment. We have assessed the hedge fund sentiment from Insider Monkey’s database of 920 elite hedge funds tracked as of the end of the third quarter of 2022. Kimberly-Clark has raised the annual payout for 51 consecutive years. In January 2023, the board of directors approved a 1.7% increase in the quarterly dividend to $1.18 a share.

Over the past 10 years, the company has paid out a total of $63.8 billion in dividends to shareholders. But it shouldn't go unnoticed that the packaged food company is about as reliable as they come when it comes to income investing, having raised its payout every year for more than five decades. This dividend stalwart and its various predecessors have strung together uninterrupted payouts since 1882. To its credit, XOM was one of the few energy companies that didn't cut or suspend its payout amid the pandemic-caused crash in oil prices.

I may use some experimental portfolios or mimic some portfolios (10-Bagger and Deep Value) from my HIDIY Marketplace service, which are not part of my long-term holdings. As the names suggest, the HGLY category would have stocks that offer a high rate of dividend growth but usually a low current yield. These stocks would normally have low payment ratios, manageable levels of debt, and rapidly rising earnings. If you're new to dividend investing, it's smart to familiarize yourself with dividend stocks and why they can make excellent investments. Once you have a firm grasp on how dividends work, a few key concepts can help you find excellent dividend stocks for your portfolio. Next, don't make owning high-dividend-yielding stocks your No. 1 priority.

S&P Global

Many investors know the importance of having a base of dividend stocks. These stocks provide investors with a regular source of passive income. And long-term investors who don’t need the income from dividends immediately can reinvest their dividends.

Comerica pays its quarterly $0.68 per share dividend in January, April, July and October. The bank did increase its dividend several times between 2015 and 2018. However, the per-share payout has been unchanged since April, 2020, after an increase of $0.01. The stocks that currently have the highest dividend yields on the S&P 500 are Altria Group (MO -1.03%) (8.2%); V.F. Corp (VFC -4.89%) (6.9%); Newell Brands (NWL -5.71%) and Verizon Communications (VZ -1.96%) (6.3% each); and Simon Property Group (SPG -2.99%) (6.1%). A dividend happens when a company sends money (or, very rarely, stock) to its shareholders.

  • We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
  • Indeed, that one hundred bucks you plonked down two decades ago will generate $20.18 in annual income.
  • But it's tough to keep pace with those strong dividend-payers during bear markets.
  • Dividend yield is one tool to use to screen for dividend stocks that are potentially worth owning.
  • Most companies pay out dividends quarterly, so you can collect dividends every four months.

The company understands the downtrend in cigarettes, which is why they have done a nice job over the years diversifying their portfolio of products. Their timing and valuation calculations have not been all that great, as they have had a few failed acquisitions or investments, but no one bats 1.000. “A slowing economy and higher [interest rates on car purchases] means people will keep their cars longer,” Kalman says. Further, in February the company’s modest boost to its dividend marked its 65th consecutive year of increasing dividends.

Diamondback Energy

Regardless, let’s look at a few of the best dividend stocks for passive income. When people think of dividend stocks, Coca-Cola is one of the first companies that comes to mind. Coke is one of the most popular beverages on the planet and the company has a more than century-long history of success.

15 Best Dividend Stocks of 2023 - Yahoo Finance

15 Best Dividend Stocks of 2023.

Posted: Fri, 28 Apr 2023 07:00:00 GMT [source]

The main purpose of a high dividend yield portfolio is not to outperform the broad market but to generate a passive income stream that is relatively safe, reliable, and one that can grow in the future. The top 10 stocks on my watchlist for May 2023, collectively, offer a 5.13% dividend yield that is more than double the dividend yield of the S&P 500. These 10 stocks have also grown their dividends at a historical rate of 32.29% per year during the last five years. Collectively, all 10 stocks appear to be potentially about 32% undervalued right now based on dividend yield theory. Growth in sales and cash flow funds dividends and dividend increases.

Improving conditions could also mean TSN continues with its more than decade-long trend of dividend growth. Payouts have risen by an average of 12.36% annually for the past five years. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read 5 Best Dividend Stocks of 2023. In this article, we discuss the 15 best safe dividend stocks for 2023. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read the 5 Best Safe Dividend Stocks For 2023.

By law, REITs need to pay out a minimum of 90% of taxable income out as shareholder dividends. It’s a percentage that represents the income (via dividends) that a company pays stock investors versus the price of the stock. Dividend yield is just one metric that may help investors to decide whether a company's stock can make a good addition to their portfolios.

Dividend Reliability

Energy did well in 2022 with the S&P 500 Energy Index gaining about 50% during the year. Between inflation, war in Ukraine and OPEC production cuts, energy producers saw supply shrink, allowing them to charge premiums for their products. Johnson & Johnson (JNJ (opens in new tab)), founded in 1886 and public since 1944, operates in several different segments of the healthcare industry. In addition to pharmaceuticals, it also manufactures medical devices.

That payout has been on the rise for 39 consecutive years and has been delivered without interruption for 79. Most recently, Brown-Forman last upped the quarterly ante in November 2022, by 9% to 20.55 cents per share. The $90 billion tie-up of Linde and Praxair created the world's largest industrial gasses company. The REIT went public in 1994 and has been hiking its payout ever since.

best dividend stocks 2023

AbbVie and Johnson & Johnson could be especially appealing to income investors because they're both Dividend Kings with at least 50 consecutive years of dividend increases. In terms of the Dividend, MSFT pays a low yield and is more viewed as icing on the cake. There are worries about a potential recession, inflation in the price of goods and services and questions about what the Federal Reserve will do with interest rates. Near-term performance of stocks, exchange-traded funds (ETFs) and fixed-income assets is foggy. While many sources of passive income are actually quite “hands on” — like acting as a landlord without a property manager — dividend stocks are one of the true passive income generators out there.

These 2 Dividend Stocks Are Screaming Buys - The Motley Fool

These 2 Dividend Stocks Are Screaming Buys.

Posted: Tue, 02 May 2023 07:00:00 GMT [source]

Even the most rock-solid dividend stocks can experience significant volatility over short periods. There are simply too many market forces that can move them up or down over days or weeks, many of which have nothing to do with the underlying business itself. The qualities that define a good investment are always relative to your expectations.

67 Best Dividend Stocks for Dependable Dividend Growth