QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)
QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)
QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)
QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)

Best Dividend Stocks

Below you will find a list of the most popular dividend paying stocks among MarketBeat subscribers. These stocks pay dividend yields of 3% or greater and are sorted by the number of MarketBeat users following each company. The table below shows each public company's current dividend yield, payout ratio, market indicators and other important metrics investors use to evaluate dividend stocks.

MarketRank™ evaluates a company based on dividend strength, earnings, valuation, analysts forecasts, and more.
Available with a MarketBeat All Access Subscription
MarketRank™Upgrade to All Access to use the All Ranks Filter
Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
Available with a MarketBeat All Access Subscription
Media SentimentUpgrade to All Access to use the All Sentiments Filter
Analyst consensus is the average investment recommendation among Wall Street research analysts.
Available with a MarketBeat All Access Subscription
Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyCurrent PriceMarketBeat FollowersDividend YieldAnnual PayoutPayout RatioEx-Dividend DateIndicator(s)
AT&T Inc. stock logo
T
AT&T
$16.82
-2.9%
11,2616.60%$1.1156.63%N/AAnalyst Upgrade
Ford Motor stock logo
F
Ford Motor
$12.83
+0.2%
11,1124.68%$0.6055.56%2/15/2024Earnings Report
Dividend Announcement
Analyst Report
Options Volume
Analyst Revision
News Coverage
Pfizer Inc. stock logo
PFE
Pfizer
$27.56
0.0%
8,4546.10%$1.68466.67%N/A
Exxon Mobil Co. stock logo
XOM
Exxon Mobil
$103.97
+1.7%
7,8673.65%$3.8042.74%2/13/2024Earnings Report
Dividend Announcement
Analyst Report
AbbVie Inc. stock logo
ABBV
AbbVie
$174.79
-0.1%
7,4733.55%$6.20227.11%N/AEarnings Report
Analyst Report
Analyst Revision
Verizon Communications Inc. stock logo
VZ
Verizon Communications
$39.91
-1.3%
6,7306.67%$2.6696.38%N/A
Energy Transfer LP stock logo
ET
Energy Transfer
$13.92
+0.1%
6,6889.05%$1.26118.87%N/AUpcoming Earnings
Options Volume
Positive News
Johnson & Johnson stock logo
JNJ
Johnson & Johnson
$156.43
-1.0%
6,5893.04%$4.7634.47%2/16/2024Analyst Report
Gilead Sciences, Inc. stock logo
GILD
Gilead Sciences
$73.80
-0.8%
6,0994.07%$3.0066.67%3/14/2024Earnings Report
Dividend Increase
Analyst Report
Analyst Revision
News Coverage
Bristol-Myers Squibb stock logo
BMY
Bristol-Myers Squibb
$48.71
+0.1%
5,8914.93%$2.4062.18%N/AEarnings Report
Analyst Downgrade
Analyst Revision
Chevron Co. stock logo
CVX
Chevron
$154.06
+1.3%
5,8563.92%$6.0453.17%2/15/2024Earnings Report
Dividend Increase
Analyst Report
The Coca-Cola Company stock logo
KO
Coca-Cola
$59.83
-0.3%
5,7573.08%$1.8473.90%N/AUpcoming Earnings
Analyst Revision
Cisco Systems, Inc. stock logo
CSCO
Cisco Systems
$49.95
+0.4%
5,5423.12%$1.5647.13%N/AUpcoming Earnings
International Business Machines Co. stock logo
IBM
International Business Machines
$184.36
+1.2%
5,4683.60%$6.6481.67%2/8/2024
Altria Group, Inc. stock logo
MO
Altria Group
$40.08
-0.4%
5,1549.78%$3.9285.78%N/AEarnings Report
Buyback Announcement
Enterprise Products Partners L.P. stock logo
EPD
Enterprise Products Partners
$26.25
5,0567.85%$2.0681.75%N/AEarnings Report
Analyst Report
3M stock logo
MMM
3M
$93.20
-0.7%
4,5476.44%$6.00N/A2/15/2024Dividend Increase
Positive News
United Parcel Service, Inc. stock logo
UPS
United Parcel Service
$147.90
+0.4%
4,4704.38%$6.4883.18%2/16/2024Analyst Upgrade
Insider Buying
CVS Health Co. stock logo
CVS
CVS Health
$75.09
-1.3%
4,3913.54%$2.6640.12%N/AEarnings Report
Analyst Report
Options Volume
News Coverage
Citigroup Inc. stock logo
C
Citigroup
$54.31
-0.4%
4,0383.90%$2.1253.13%N/AAnalyst Revision
Kinder Morgan, Inc. stock logo
KMI
Kinder Morgan
$16.63
-0.1%
3,7206.79%$1.13105.61%N/A
Realty Income Co. stock logo
O
Realty Income
$53.16
-0.4%
3,4555.79%$3.08233.33%N/AAnalyst Upgrade
Blackstone Inc. stock logo
BX
Blackstone
$127.84
+1.4%
3,4042.94%$3.76205.46%N/A
Target Co. stock logo
TGT
Target
$147.42
+0.5%
3,3342.98%$4.4056.12%2/20/2024Analyst Upgrade
News Coverage
ZIM Integrated Shipping Services Ltd. stock logo
ZIM
ZIM Integrated Shipping Services
$12.20
-7.9%
3,28652.46%$6.40N/AN/AGap Down
BP p.l.c. stock logo
BP
BP
$36.22
+0.1%
3,1134.75%$1.7233.79%2/15/2024Earnings Report
Dividend Announcement
Analyst Report
Walgreens Boots Alliance, Inc. stock logo
WBA
Walgreens Boots Alliance
$22.54
-1.2%
3,0678.52%$1.92290.91%2/16/2024
AGNC Investment Corp. stock logo
AGNC
AGNC Investment
$9.35
+0.3%
3,06315.40%$1.4414,414.41%N/ADividend Announcement
Annaly Capital Management, Inc. stock logo
NLY
Annaly Capital Management
$18.80
+1.2%
2,83513.83%$2.60N/AN/AAnalyst Report
News Coverage
NextEra Energy, Inc. stock logo
NEE
NextEra Energy
$56.28
-0.2%
2,7913.32%$1.8751.80%N/A
Medtronic plc stock logo
MDT
Medtronic
$86.18
-1.1%
2,7673.20%$2.7689.90%N/A
Rithm Capital Corp. stock logo
RITM
Rithm Capital
$10.13
-0.5%
2,7029.87%$1.0068.97%N/AEarnings Report
Analyst Revision
News Coverage
Enbridge Inc. stock logo
ENB
Enbridge
$34.33
-0.3%
2,6017.57%$2.60234.23%2/14/2024Upcoming Earnings
Options Volume
Analyst Revision
News Coverage
Vale S.A. stock logo
VALE
Vale
$13.26
-1.7%
2,5517.47%$0.9947.37%N/AAnalyst Upgrade
The Kraft Heinz Company stock logo
KHC
Kraft Heinz
$36.47
+0.2%
2,3894.39%$1.6066.12%N/AUpcoming Earnings
Valero Energy Co. stock logo
VLO
Valero Energy
$141.80
+0.4%
2,3153.02%$4.2817.31%N/APositive News
Duke Energy Co. stock logo
DUK
Duke Energy
$92.65
-3.0%
2,3054.43%$4.10261.15%2/15/2024Analyst Revision
News Coverage
Philip Morris International Inc. stock logo
PM
Philip Morris International
$89.01
-2.7%
2,2555.84%$5.20100.97%N/AEarnings Report
News Coverage
Gap Down
Rio Tinto Group stock logo
RIO
Rio Tinto Group
$68.11
-0.6%
2,1845.18%$3.53N/AN/APositive News
Prospect Capital Co. stock logo
PSEC
Prospect Capital
$5.81
2,16312.39%$0.72654.60%N/ANews Coverage
Morgan Stanley stock logo
MS
Morgan Stanley
$85.65
-0.4%
2,1633.97%$3.4065.76%N/AAnalyst Revision
Dow Inc. stock logo
DOW
DOW
$53.88
-0.4%
2,1565.20%$2.80341.47%N/ANews Coverage
Innovative Industrial Properties, Inc. stock logo
IIPR
Innovative Industrial Properties
$91.32
+1.5%
2,0867.97%$7.28125.95%N/APositive News
Medical Properties Trust, Inc. stock logo
MPW
Medical Properties Trust
$3.29
+0.8%
2,05518.26%$0.60N/AN/APositive News
Royal Dutch Shell plc stock logo
RDS.A
Royal Dutch Shell
$51.04
1,9983.76%$1.92165.52%N/A
Macy's, Inc. stock logo
M
Macy's
$19.23
+3.7%
1,9793.43%$0.6626.83%N/APositive News
American Tower Co. stock logo
AMT
American Tower
$193.67
+0.0%
1,9663.51%$6.80444.45%N/AAnalyst Upgrade
News Coverage
Ares Capital Co. stock logo
ARCC
Ares Capital
$20.01
-0.9%
1,9459.60%$1.9283.12%3/14/2024Earnings Report
Dividend Announcement
News Coverage
The Southern Company stock logo
SO
Southern
$66.94
0.0%
1,9454.18%$2.80101.08%2/16/2024Upcoming Earnings
Positive News
GSK plc stock logo
GSK
GSK
$41.82
-0.5%
1,9413.35%$1.4046.51%2/22/2024Dividend Increase

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. Not only does this make dividend stocks a proven way for investors to build wealth. It also provides a form of inflation protection.

In this article, we’ll provide tips for how investors can evaluate dividend stocks so they can choose the best dividend stocks for their investing goals.

To understand how to select the top dividend stocks, you’ll need to be familiar with some commonly used terms. If you’re new to dividend investing, here’s a brief explanation of what those terms mean.

Dividend Yield – This is a ratio of the stock’s annual dividend divided by the current stock price. So a stock that pays out $4.00 annually and has a stock price of $100 has a dividend yield of 4%. However, stock prices move up and down on a daily basis. This means that the dividend yield may change frequently making dividend yield alone an imperfect measure for evaluating the quality of a dividend stock.

Annual Payout – This is the amount of a company’s earnings that they will pay out as a dividend. This is listed on a per share basis for the year. So if a company has an annual payout of $2.00 and pays a quarterly dividend, shareholders will receive 50 cents per share every quarter. For investors who are relying on dividend payments as a way to generate income, knowing the quarterly payout is a critical factor in determining what dividend stocks to buy.  

Payout Ratio – This tells investors how much of a company’s earnings goes towards the dividend. A higher number means that a company is applying more of its earnings towards its dividend. Payout ratios are also an imperfect measurement because while a higher number is generally better, the more of a company’s earnings that go towards a dividend is less money that can go towards growth.

To properly evaluate individual stocks, investors need to take a look at the company’s financials to make sure it is financially sound. This is because investors want certainty that a company can maintain and perhaps even grow its dividend even if its overall financial conditions weaken.

The good news is that you don’t have to have a finance background to do the research you need to evaluate a dividend stock. Here are some quick things to look for.

  • Steady Growth – A growing company shows consistent growth in both earnings per share (EPS) and revenue. This is about consistency and having realistic expectations about past performance. Even the best companies will have a bad quarter. However, many financially weak companies will pull out an occasional good quarter. What you want to see is a consistent pattern of earnings growth and revenue on both a quarterly (sequential) and a year-over-year (YOY) basis.

However, you should also look for sustainable growth. Companies that are paying dividends are generally in mature industries. That means, compared to growth stocks, these stocks tend to have a lower percentage growth in revenue and earnings. This may make their share price less attractive when the economy is going well. But, these stocks will tend to outperform when the economy is slowing down.

  • Exceptional Free Cash Flow - Along with growth in revenue and earnings, investors will want to see companies that have a healthy cash flow. Investors should look at a company’s free cash flow (FCF) as a good metric to determine the overall health of a company’s cash position.
  • Little or No Debt - Just like in your personal finances, too much debt is bad for business. Or in this case, it can be bad for a company’s dividend. This is because when a company has too much debt, they will tend to allocate earnings towards paying off the debt and away from its dividend. For most companies, it’s easy to find a number called its debt-to-equity ratio. Ideally, investors should look for a ratio that’s below 2.00.

When comparing dividend stocks, investors need to avoid making false comparisons. Not all dividend stocks are the same. That’s one problem with ratios and percentages. They can create a false comparison between two companies.

For example, a real estate investment trust (REIT) is required to pay out up to 90% of its earnings as a dividend. As a result, these stocks have some of the highest dividend yields available. You’ll want to make sure you compare companies that are in similar sectors (financials, consumer durables, healthcare, etc.).

This brings me to another point. At any given time, one sector may be performing better than others. However, even with an underperforming sector investors may be able to find a quality dividend stock.

MarketBeat provides a Dividend Screener tool as a comparison service for investors. For example, investors can screen for stocks in a particular sector or industry. They can also screen for specific fundamental metrics like dividend yield or payout ratio.

The list of companies that pay dividends is long. In fact, over 400 of companies in the S&P 500 Index pay dividends. To help focus your thinking, you can choose to look at the Dividend Aristocrats. This is a select group of companies that have increased their dividend for at least 25 consecutive years. As of July 1, 2022, there are only 63 stocks on this list which can make it easier to narrow down a search.

One final point about dividend stocks is that to truly get the most from them requires having a long-term focus. Buying and holding these stocks over time and reinvesting the dividends gives investors the benefits of compounding. So make sure that the stocks you own are companies that are in defensive sectors that can deliver solid results no matter what is happening in the broader economy.  

 

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