50 Best Dividend Stocks for 2023

This debt is paid back first in the even of a default, reducing the potential for major loan losses during recessions. Carriers have no substitutes for wireless infrastructure, which is mission-critical for their businesses to operate. Leasing space on towers is also more cost-effective than owning them since Crown Castle colocates equipment from multiple customers on a single piece of infrastructure. T-Mobile, AT&T, and Verizon account for around 70% of Crown Castle’s revenue. These carriers deploy communications equipment on the REIT’s towers to transmit signals between the tower and nearby mobile devices.

best dividend stocks 2022

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The company has increased dividends for 60 consecutive years and currently offers investors a forward yield of 2.9%. A company with a significantly higher yield than peers may be a red flag. It’s imperative to analyze other factors such as the payout ratio, earnings expansion, and the strength of the financial statements. Chevron’s tasty dividend yield is much higher than bond rates, which are hovering at record lows in recent years.

Dividends are usually paid quarterly but can be paid semi-annually or annually. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities. He has covered investing and financial news since earning his economics degree from the University of Maryland in 2016. Sam has previously written for Investopedia, Benzinga, Seeking Alpha, Wealth Daily and Investment U, and has worked as an editor for Investment U, Wealth Daily and Haven Investment Letter. We believe everyone should be able to make financial decisions with confidence.

Get started investing in REITs with a primer on the sector, including the most popular REIT stocks, different types of REITs, and risks to avoid. The home appliance market is mature in developed countries, where Whirlpool earns most of its sales because population growth rates there are very low. Unlike many of its peers, the company has done a remarkable job reinventing its portfolio of brands to stay relevant and pay higher dividends for 50 consecutive years. The REIT’s cash flow stream is further protected by a well-diversified portfolio. No industry exceeds 20% of rent, no tenant tops 5% of rent, and the portfolio is spread across the U.S. with no major geographic concentration. However, Pinnacle’s high dividend yield reflects the recent deterioration in the firm’s relationship with the Arizona Corporation Commission , the state utility regulator.

Investors need to consider the amount of debt a company has on its balance sheet. The company needs to generate enough cash flows to make interest payments and consistently lower its debt while paying shareholders dividends. A lower payout ratio suggests the company has enough room to utilize profits to lower debt, reinvest in capital expenditures or even increase dividend payouts. Pepsi’s payout ratio is sustainable given it has increased dividend payments yearly for 50 consecutive years.

The earnings per share or EPS is calculated by dividing a company’s net profits by the number of outstanding shares. So, if a company’s profits are $1 billion and it has 100 million outstanding shares, its earnings per share are $10. Dividend investing has gained widespread acceptance globally as it enables individuals to create an alternate source of income. Further, over the long term, investors can also benefit from capital gains. You can either choose to withdraw the dividends or reinvest the payouts to benefit from compounded gains.

Big Lots shares have performed quite poorly in 2022, falling 71% excluding dividends so far this year. Persimmon is a British house-building company https://traderevolution.net/ with headquarters in York. Persimmon is made up of 31 regional operating businesses and builds homes in over 380 locations worldwide.

Dividend Stocks Versus Bonds for Retirement Income

Alternatively, share prices are decimated if these payouts are suspended or reduced. We know the dividend yield is inversely related to a company’s stock price. So, investors should investigate the reasons behind the decline in share prices and evaluate if the sell-off is related to weak fundamentals or market-wide factors. Here, the company pays investors with additional shares that can be liquidated or sold later. Generally, stock dividends are issued by small-cap companies that are aiming to increase trading liquidity and the number of outstanding shares. As with many things on Wall Street, it’s misleading to look at just a single number in a vacuum.

Analyst consensus is the average investment recommendation among Wall Street research analysts. Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week. Dow is web app development cost in 2021 involved in the production of different chemicals that are used in a variety of industries. Its segments include packaging and specialty plastics, industrial intermediates and infrastructure, as well as performance materials and coatings.

Companies with a high payout ratio may be committed to paying out such a dividend, with fears that investors would look elsewhere if they cut the rate. Moreover, some companies or industries generally pay a higher dividend, as growth opportunities are not as evident. Colgate began paying investors a dividend in 1895 and has increased payouts every year since 1963.

Performance Comparison

These agreements allow American Tower to generate cash flows in good times and bad. American Tower’s payout ratio is just over 50%, and the rest of its cash flows are used to expand its base of cash-generating assets. One of the most famous brands in the world, Coca-Cola is valued at $270 billion by market cap. The beverage giant’s brand value protects it from cost pressures making it a top bet in an inflationary environment.

  • The offers that appear on this site are from companies that compensate us.
  • Dividend yield is just one metric that may help investors to decide whether or not a company’s stock can make a good addition to their portfolios.
  • Most recently, in May 2022, Lowe’s lifted its quarterly payout by 31% to $1.05 per share.
  • Regulated utilities have several qualities that can make them appealing high dividend stocks.

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. Dover last raised its payout in August 2022, when it upped the quarterly outlay by 1% to 50.5 cents per share. Including its time as part of Abbott, AbbVie has upped its annual distribution for 51 consecutive years. The most recent hike – an 5% increase to the quarterly payment to $1.48 per share – was declared in October 2022. Not too long ago, investors fretted over a long-term slide in sales of carbonated beverages, but that turned out not to be a secular trend after all.

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It operates in multiple countries around the world and holds the title of the tenth-largest pharmaceutical company worldwide, being listed on both the LSE and NYSE. Polymetal International is a new contender on this list as it now pays its investors a healthy dividend of 6.13% in 2021. Therefore, it deserves its spot on the top dividend-stocks list and it appears to be rising consistently. The dividend for Phoenix Group Holdings has been increasing steadily since its first payout in 2010. Despite its share price plummeting in the first quarter of 2020, it has managed to climb back 20% over recent months and it shows resilience to any further drops. Legal & General is a financial services company that deals with pensions, lifetime mortgages, annuities and investments for more than 10 million clients worldwide.

best dividend stocks 2022

The most recent hike was declared in November 2022, when Roper lifted the quarterly payout by 10%, to 68.25 cents per share. With ample free cash flow after debt-service payments, Linde should have plenty of firepower to keep its dividend-growth streak alive. Thanks to its steady and generous stream of dividend hikes, Essex boasts vantage fx review an annualized 10-year divided growth rate of 101%. Over 20 years, the company’s annualized dividend growth rate comes to nearly 200%. CAT has paid a regular dividend without fail since 1933, and has lifted its payout every year for 28 years. Most recently, the company raised the dividend in June 2022, by 8% to $1.20 quarterly.

Johnson & Johnson is the prime example of a “widow and orphan” stock. It is among the 10 largest stocks on Wall Street, with a massive brand and more than 135 years of operations. JNJ is also one of the most credit-worthy companies in the world, ranking as one of just two U.S. companies with a top AAA rating for its corporate debt. That supports consistent dividends that income investors can rely on, even if the yield isn’t as big as other stocks on this list.

FAF is down about 30% from its January high, which has provided a temporary jolt to the stock’s dividend yield. Since yield is calculated as the dividend rate divided by stock price, the lower the price relative to the payment amount, the higher the yield. By the way, many of the investors interested in high dividend stocks are retirees looking to generate dependable income from dividend stocks. The company’s impressive dividend track record also reflects management’s conservative approach to running the business.

Pembina’s network of assets acts as a one-stop shop for energy producers to help move their oil, gas, and natural gas liquids from Canada to the highest value markets worldwide. Since going public in 1994, the office landlord has only cut its dividend once. In 2003, a payout reduction was necessary after occupancy fell from 93% in 2001 to 82%. Airways going bankrupt, this pushed Highwoods’ payout ratio above 100%. Management also runs the business with much less debt than regulators allow, helping the firm earn a BBB- credit rating. The portfolio’s risk is further reduced by Ares Capital’s focus on first-lien secured loans, which account for around half of the BDC’s investments and get paid first when a borrower defaults.

In the most recent quarter, the IoT segment was Qualcomm’s fastest growing business as sales were up 61% compared to the year-ago period. Qualcomm’s dividend yield stands at 2%, and it’s trading at a discount of 30% compared to average price target estimates. The capacity of its tower assets and data centers are leased to several enterprises under long-term lease agreements.

S&P 500

That leaves total annual returns of nearly 8% for LyondellBasell going forward as growth and the valuation nearly offset each other, and the sizable yield powers returns. The stock’s current yield is 5.8%, putting it at nearly four times that of the S&P 500, and quite elevated by Lyondell’s own historical standards. On a relative basis, the stock looks enticing based upon the yield in multiple ways. The shares of the stock have performed quite well considering what has transpired in 2022, losing just over 7% of their value excluding dividends. A ratio above 1.0 is considered healthy and anything less than 1.0 is possibly not sustainable and suggests that the dividend is at risk of being cut.

As the retail and housing markets cooled in 2022, so did shares of Home Depot. HD is down more than 30% from its December 2022 all-time high, offering dividend investors a great opportunity to buy a company with a compelling growth story. JPM has been growing EPS at a healthy average rate of nearly 15% per year over the last five years. Just be aware that the stock’s current high dividend yield is partially due to the 35% pullback in its price since October 2021. Over the last decade, First American’s share price growth has outpaced the S&P 500 by 2.3% per year, on average.

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It also happens to be the lone energy-sector name among the 30 stocks in the Dow Jones Industrial Average. A combination of acquisitions, organic growth and stronger margins have helped Roper juice its dividend without stretching its profits. And while the yield might not look like much, patient investors have come to appreciate what ROP’s steady dividend increases have done for their returns.

In a decade’s time, the dividend yield on your original cost basis will have grown to 7.8%. After 20 years, your original investment of $100 will sport a dividend yield of more than 20%. Indeed, that one hundred bucks you plonked down two decades ago will generate $20.18 in annual income. Speaking of growth, we believe Intel can produce 5% earnings-per-share growth in the years to come, which will also help the company maintain its dividend increase streak in the years to come. Should earnings grow, the capital available to return to shareholders will increase as well.

High dividend stocks appeal to many investors in retirement because they provide substantial passive income. And unlike the fixed interest paid from bonds, dividends can grow each year to help combat inflation. The Dividend Aristocrats list is a great place to find top dividend stocks.

Dividend stocks or funds can be a great way to earn additional income. Keep in mind that if you own these securities in a taxable brokerage account, you’ll need to pay taxes on the income you receive, even if you reinvest those dividends. If you want to avoid taxes, you’ll need to own the shares in a tax-advantaged account such as an IRA or 401. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities.

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