S&P 500   4,205.45
DOW   33,093.34
QQQ   348.40
10 Ways Entrepreneurs Can Navigate a Down Economy
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Get the Most Out of Remote Meetings and Avoid Meeting Burn Out
A Woman Co-founder's Guide to Empowering Women in the Workplace and Advocating for Gender Equality
Free SMS Trade Alerts. Up to 15 opportunities a day. (Ad)
Open vs. Anonymous Employee Feedback — Which is Better?
PwC Australia sidelines 9 directors as leak of tax information investigated
Free SMS Trade Alerts. Up to 15 opportunities a day. (Ad)
South African president appoints judge to oversee weapons-for-Russia inquiry
Drought-struck Barcelona quenches thirst with costly desalination
S&P 500   4,205.45
DOW   33,093.34
QQQ   348.40
10 Ways Entrepreneurs Can Navigate a Down Economy
Free SMS Trade Alerts. Up to 15 opportunities a day. (Ad)
Get the Most Out of Remote Meetings and Avoid Meeting Burn Out
A Woman Co-founder's Guide to Empowering Women in the Workplace and Advocating for Gender Equality
Free SMS Trade Alerts. Up to 15 opportunities a day. (Ad)
Open vs. Anonymous Employee Feedback — Which is Better?
PwC Australia sidelines 9 directors as leak of tax information investigated
Free SMS Trade Alerts. Up to 15 opportunities a day. (Ad)
South African president appoints judge to oversee weapons-for-Russia inquiry
Drought-struck Barcelona quenches thirst with costly desalination
S&P 500   4,205.45
DOW   33,093.34
QQQ   348.40
10 Ways Entrepreneurs Can Navigate a Down Economy
Free SMS Trade Alerts. Up to 15 opportunities a day. (Ad)
Get the Most Out of Remote Meetings and Avoid Meeting Burn Out
A Woman Co-founder's Guide to Empowering Women in the Workplace and Advocating for Gender Equality
Free SMS Trade Alerts. Up to 15 opportunities a day. (Ad)
Open vs. Anonymous Employee Feedback — Which is Better?
PwC Australia sidelines 9 directors as leak of tax information investigated
Free SMS Trade Alerts. Up to 15 opportunities a day. (Ad)
South African president appoints judge to oversee weapons-for-Russia inquiry
Drought-struck Barcelona quenches thirst with costly desalination
S&P 500   4,205.45
DOW   33,093.34
QQQ   348.40
10 Ways Entrepreneurs Can Navigate a Down Economy
Free SMS Trade Alerts. Up to 15 opportunities a day. (Ad)
Get the Most Out of Remote Meetings and Avoid Meeting Burn Out
A Woman Co-founder's Guide to Empowering Women in the Workplace and Advocating for Gender Equality
Free SMS Trade Alerts. Up to 15 opportunities a day. (Ad)
Open vs. Anonymous Employee Feedback — Which is Better?
PwC Australia sidelines 9 directors as leak of tax information investigated
Free SMS Trade Alerts. Up to 15 opportunities a day. (Ad)
South African president appoints judge to oversee weapons-for-Russia inquiry
Drought-struck Barcelona quenches thirst with costly desalination

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 community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
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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
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Analyst consensus is the average investment recommendation among Wall Street research analysts.
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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
$15.50
+2.3%
10,6927.16%$1.11N/AN/A
Ford Motor stock logo
F
Ford Motor
$12.09
+6.2%
10,4934.96%$0.6084.51%N/AOptions Volume
Pfizer Inc. stock logo
PFE
Pfizer
$37.60
-0.6%
7,8594.36%$1.6432.28%N/A
Exxon Mobil Co. stock logo
XOM
Exxon Mobil
$104.97
-0.7%
7,3093.47%$3.6424.64%N/AShort Interest ↓
Bank of America Co. stock logo
BAC
Bank of America
$28.31
+0.5%
7,2643.11%$0.8826.43%6/1/2023Short Interest ↓
AbbVie Inc. stock logo
ABBV
AbbVie
$137.56
-0.8%
7,0334.30%$5.92139.95%N/AShort Interest ↓
Analyst Revision
Johnson & Johnson stock logo
JNJ
Johnson & Johnson
$154.35
0.0%
6,2623.08%$4.7699.58%N/A
Energy Transfer LP stock logo
ET
Energy Transfer
$12.65
-0.6%
6,1689.72%$1.2391.79%N/AShort Interest ↑
Gilead Sciences, Inc. stock logo
GILD
Gilead Sciences
$77.09
-0.7%
5,9813.89%$3.0067.72%6/14/2023Short Interest ↓
Positive News
Verizon Communications Inc. stock logo
VZ
Verizon Communications
$35.00
+0.5%
5,6467.46%$2.6150.78%N/A
Bristol-Myers Squibb stock logo
BMY
Bristol-Myers Squibb
$63.82
-1.1%
5,4083.57%$2.2866.47%N/A
The Coca-Cola Company stock logo
KO
Coca-Cola
$60.26
-0.2%
5,2803.05%$1.8480.70%6/15/2023
Cisco Systems, Inc. stock logo
CSCO
Cisco Systems
$49.86
+1.7%
5,2643.13%$1.5656.12%7/5/2023Analyst Upgrade
Chevron Co. stock logo
CVX
Chevron
$154.08
-0.3%
5,0963.92%$6.0432.61%N/AShort Interest ↑
International Business Machines Co. stock logo
IBM
International Business Machines
$128.89
+1.7%
5,0815.15%$6.64337.06%N/A
Enterprise Products Partners L.P. stock logo
EPD
Enterprise Products Partners
$25.48
+0.2%
4,6707.69%$1.9677.17%N/AAnalyst Revision
Altria Group, Inc. stock logo
MO
Altria Group
$44.61
-0.1%
4,6288.43%$3.76120.90%6/14/2023
3M stock logo
MMM
3M
$96.94
-0.1%
4,2196.19%$6.0062.18%N/A
CVS Health Co. stock logo
CVS
CVS Health
$67.64
0.0%
4,1973.58%$2.4279.87%N/AShort Interest ↓
United Parcel Service, Inc. stock logo
UPS
United Parcel Service
$171.57
+0.2%
4,1403.78%$6.4852.43%N/A
Citigroup Inc. stock logo
C
Citigroup
$44.60
+0.8%
3,7934.57%$2.0428.45%N/A
Kinder Morgan, Inc. stock logo
KMI
Kinder Morgan
$16.21
-0.1%
3,5576.97%$1.13100.00%N/A
Blackstone Inc. stock logo
BX
Blackstone
$85.70
+2.6%
3,2883.83%$3.28400.00%N/AShort Interest ↓
Target Co. stock logo
TGT
Target
$138.93
-1.3%
3,1043.11%$4.3273.59%N/AAnalyst Upgrade
High Trading Volume
Realty Income Co. stock logo
O
Realty Income
$58.66
+0.4%
3,0085.22%$3.06215.49%5/31/2023
BP p.l.c. stock logo
BP
BP
$35.55
+0.5%
2,9714.42%$1.5718.82%N/AShort Interest ↑
ZIM Integrated Shipping Services Ltd. stock logo
ZIM
ZIM Integrated Shipping Services
$13.78
-2.8%
2,938185.78%$25.60108.15%N/AEarnings Report
Walgreens Boots Alliance, Inc. stock logo
WBA
Walgreens Boots Alliance
$30.01
+0.1%
2,8216.40%$1.92N/AN/A
AGNC Investment Corp. stock logo
AGNC
AGNC Investment
$9.11
+4.1%
2,76615.81%$1.44N/A5/30/2023Short Interest ↓
News Coverage
Positive News
Annaly Capital Management, Inc. stock logo
NLY
Annaly Capital Management
$18.44
+3.7%
2,73514.10%$2.60N/AN/AShort Interest ↓
Rithm Capital Corp. stock logo
RITM
Rithm Capital
$8.17
+3.0%
2,56612.24%$1.00178.57%N/A
The Goldman Sachs Group, Inc. stock logo
GS
The Goldman Sachs Group
$332.01
+2.5%
2,5453.01%$10.0035.60%5/31/2023Short Interest ↓
Medtronic plc stock logo
MDT
Medtronic
$81.46
-2.5%
2,5393.34%$2.7296.45%6/22/2023Earnings Report
Dividend Increase
Analyst Report
Petróleo Brasileiro S.A. - Petrobras stock logo
PBR
Petróleo Brasileiro S.A. - Petrobras
$11.97
+1.9%
2,53716.21%$1.9435.93%N/A
Amgen Inc. stock logo
AMGN
Amgen
$216.93
-0.2%
2,4853.93%$8.5257.92%N/A
Vale S.A. stock logo
VALE
Vale
$13.26
+3.0%
2,4445.20%$0.6919.55%N/AAnalyst Downgrade
Gap Up
Enbridge Inc. stock logo
ENB
Enbridge
$35.88
-0.1%
2,3947.33%$2.63295.51%N/AShort Interest ↑
The Kraft Heinz Company stock logo
KHC
Kraft Heinz
$38.34
+0.2%
2,2204.17%$1.6081.63%6/5/2023Short Interest ↓
Valero Energy Co. stock logo
VLO
Valero Energy
$113.82
+0.6%
2,2183.58%$4.0811.59%N/A
Philip Morris International Inc. stock logo
PM
Philip Morris International
$90.84
+0.1%
2,1435.59%$5.0890.88%N/A
Duke Energy Co. stock logo
DUK
Duke Energy
$88.70
-0.2%
2,1374.53%$4.02123.69%N/AAnalyst Revision
Rio Tinto Group stock logo
RIO
Rio Tinto Group
$61.12
+2.9%
2,1137.35%$4.49N/AN/AAnalyst Upgrade
Gap Up
Dow Inc. stock logo
DOW
DOW
$50.34
-0.1%
2,0985.56%$2.8070.00%5/30/2023Short Interest ↑
Prospect Capital Co. stock logo
PSEC
Prospect Capital
$6.26
+0.8%
2,09711.50%$0.72N/A6/27/2023Short Interest ↑
Innovative Industrial Properties, Inc. stock logo
IIPR
Innovative Industrial Properties
$67.46
+0.9%
2,02910.67%$7.20127.89%N/AShort Interest ↓
Positive News
Morgan Stanley stock logo
MS
Morgan Stanley
$83.90
+1.1%
2,0123.69%$3.1053.26%N/A
Royal Dutch Shell plc stock logo
RDS.A
Royal Dutch Shell
$51.04
2,0053.76%$1.92165.52%N/A
Macy's, Inc. stock logo
M
Macy's
$14.34
+2.1%
1,9224.60%$0.6615.75%N/AUpcoming Earnings
GSK plc stock logo
GSK
GSK
$34.24
+0.4%
1,8863.97%$1.3616.43%N/AShort Interest ↓
American Tower Co. stock logo
AMT
American Tower
$182.18
-0.2%
1,8633.43%$6.24208.00%6/15/2023Dividend 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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