15 Highest Yielding Dividend Stocks You Can Buy Today

Over the long haul, however, this Dividend Aristocrat’s shares have been a proven winner. That’s thanks in no small part to 31 consecutive years of dividend increases. ECL’s most recent hike came in December 2022, with a 4% increase in the quarterly payment to 53 cents per share. With ample free cash flow and a below-average payout ratio, investors can count on AOS to keep the dividend increases coming.

The combination of cash flow and appreciation make them a great hedge against inflation. 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%. This means that the dividend yield may change frequently making dividend yield alone an imperfect measure for evaluating the quality of a dividend stock.

• The most recent hike, announced in February 2023, lifted the quarterly dividend by 4.5% to 46 cents per share.
• In contrast, the S&P 500 had a decline of 4.75% during that time.
• We analyze more than 850 income securities every quarter in the Sure Analysis Research Database.

You must be a shareholder on or before the next ex-dividend date to receive the upcoming dividend. Customized to investor preferences for risk tolerance and income vs returns mix. Financial leverage measures a company’s debt and preferred equity load. At the end of the day, it’s crucial to do your homework bullish wedge pattern and make sure you understand the Company’s business, and financial position. For investors looking for more high yield research and ideas, please see below. Office Properties Income Trust is a REIT that currently owns 157 buildings, which are primarily leased to single tenants with high credit quality.

How to avoid falling into a dividend trap

He has been widely published, writing for Technical Analysis of Stock & Commodities magazine, Investopedia, Benzinga, and others. He runs TradeThatSwing.com, has authored several trading courses and books, coaches individual clients, and regularly trades stocks, currencies, and ETFs. A Fidelity Investments report touts opportunities among residential property owner REITs in the U.S. Rising mortgage rates have helped make renting more popular than home owning for many people. Also, the region has benefitted from higher job growth, a lower cost of living and in some locales tax incentives for corporate relocations. Another way that a dividend can be attractive is if it is rising.

The company last raised its dividend in February 2023, by 10% to 46.75 cents per share per quarter. CAT has paid a regular dividend without fail since 1933, and has lifted its payout every year for 29 years. Most recently, the company raised the dividend in June 2023, by 8% to $1.30 per share per quarter. Companies are listed by the number of years they’ve consecutively raised their dividends, from lowest to highest. The index of Dividend Aristocrats is maintained by S&P Dow Jones Indices.

You can skip our detailed analysis of dividend stocks and their returns in the past, and go directly to read 10 Highest-Paying Monthly Dividend Stocks. Indeed, the conglomerate’s dividend dates back more than a century. Even better, 3M has been delivering annual dividend increases to investors for 65 years. The most recent hike came in early February 2023 when the company bumped the quarterly payout by a penny to $1.50 per share. JNJ’s diversification across mutiple segments adds fortitude to this defensive dividend stock, and that helps income investors sleep better at night. The healthcare giant has increased its payout for three decades and counting.

Stellus Capital Investment Corporation (NYSE:SCM)

Additionally, CVX announced a new $75 billion share repurchase program. Through it all, however, EXPD remained committed to its semiannual dividend, which it has hiked every year for more than a quarter-century. A consistently low payout ratio should help ensure that Expeditors has ample resources to keep the streak alive and maintain its place on a list of the best dividend stocks. High dividend yields are nice, but they aren’t the only factor to consider when buying a dividend stock. Ideally, a dividend stock is financially strong and growing—continued stability and growth signals that the company’s dividend is sustainable over the long term and likely to be increased regularly. The performance of high-yielding stocks can vary significantly over time and is influenced by various economic, market, and company-specific factors.

Earnings growth is expected to be 12.5% next year and average 12.7% yearly over the next five years. The company has the lowest payout ratio on the list at 20.4%, which means ELV has plenty of room to keep growing its dividend. The company boasts the highest three-year dividend growth rate on our list. Strong expected earnings growth over the next five years and 14.3% forecasted EPS growth next year indicate that it should be able to keep growing its dividend.

With stable, contracted cash flows and strong tailwinds of future demand, Clearway is a compelling risk-reward choice for dividend investors. The company also expects to increase its payout at a 5% to 9% annual pace over the long term. Powering that forecast is its organic growth drivers — including an extensive pipeline of new renewable energy projects — plus additional acquisitions. Brookfield Renewable has already secured and funded at least 8% annual funds from operations (FFO) per share growth through 2027.

• Mutual fund providers have come under pressure because customers are eschewing traditional stock pickers in favor of indexed investments.
• Brown & Brown (BRO), which offers insurance brokerage services to both businesses and consumers, has been in operation since 1939, but its stock wasn’t added to the S&P 500 until 2021.
• West Pharmaceutical Services (WST) was added to the Dividend Aristocrats in January 2021 in recognition of its long history of annual increases.
• From its inception through early 2023, AbbVie has increased its payout by a whopping 270%.
• Companies are listed by the number of years they’ve consecutively raised their dividends, from lowest to highest.

Enter your email address below to receive our daily newsletter that contains dividend stock ideas, ex-dividend stocks, and the latest dividend investing news. Build conviction from in-depth coverage of the best dividend stocks. A dividend payout ratio well above the industry average could be a warning sign. And no company can sustain a dividend payout ratio over 100% for long… Even if a company isn’t declining, the company’s management team may change priorities and reduce or eliminate its dividend. In practice, this typically occurs if a company has a high level of debt and wants to focus on debt reduction.

Going back 20 years, CHRW’s annualized total return beats the S&P 500 by a bit more than 2 percentage points. In addition, for those reasons, companies that pay higher dividends might be at risk of price volatility. But you must ask why a dividend is high in dollars or in percentage terms as you decide whether to buy that stock that pays that income. They must be held for 91 days out of the 181-day period beginning 90 days before the ex-dividend date. So-called qualified dividends must meet special requirements issued by the IRS. The qualified dividend rates are the same as the long-term capital gains rate.

A Wide-Moat Dividend Stock That’s 35% Undervalued

Income investors who want cash flow buy dividend stocks, although the best dividend stocks deliver good long-term appreciation in addition to income. It has seen strong earnings growth, and that is expected to continue with 10% yearly EPS growth over the next five years. The company has steadily raised its dividend amount, averaging 14.9% yearly increases over the last five years. That’s an appealing mix for investors on the hunt for a reliable source of income and steady capital appreciation. Now, Amgen’s balance sheet is highly leveraged because of a string of bolt-on acquisitions, which some income investors might find worrisome. But with a portfolio capable of producing sustainable and growing levels of free cash flow, the biotech’s heavy debt load shouldn’t diminish its ability to pay a top-shelf dividend.

Brown & Brown was added to the elite list of equity income stalwarts in 2022, thanks to its nearly three-decade streak of annual dividend increases. The stocks in the chart may have high yields, but that doesn’t necessarily mean that they’re the best dividend stocks for any investor. The ideal portfolio varies person to person, based on individual goals and timelines for those goals. Besides, many investors are better off buying index funds rather than individual stocks. Dividend ETFs or index funds offer investors access to a selection of dividend stocks within a single investment — that means with just one transaction, you can own a portfolio of dividend stocks. The fund will then pay out dividends to you on a regular basis, which you can take as income or reinvest.

Dividend stock FAQs

Thanks to its steady and generous stream of dividend hikes, Essex boasts an 10-year compound annual dividend growth rate of 7.2%. The company joins the Dividend Aristocrats on Feb. 1, 2023 by dint of its 25-year streak of payout hikes. The most recent increase was announced in November 2022 – a 10.9% bump in the disbursement to 61 cents per share quarterly. Have a https://1investing.in/ look at all 67 members of the S&P 500 Dividend Aristocrats index in the table below – and be sure to keep scrolling for more information on each and every one of these dividend stalwarts. In general, a good rule of thumb is to invest the bulk of your portfolio in index funds, for the above reasons. But investing in individual dividend stocks directly has benefits.

Company quarterly SEC filings also specify the company’s dividend per share payments. TSCO has the highest dividend growth rate on this list, with the dividend amount increasing an average of nearly 31% per year over the last five years. Analysts expect 9.5% yearly EPS growth for the next five years, and Morningstar gives the company a “B” financial health rating. It has a “B” financial rating from Morningstar, and it has grown EPS at 13.4% per year over the last five years.

At worst, the Company becomes insolvent and shuts down operations. You want to be selective about investing in companies that pay high dividends. Investing in high-yield stocks is a great way to generate income. The High Dividend 50 Series is analysis on the 50 highest-yielding Sure Analysis Research Database stocks, excluding royalty trusts, BDCs, REITs, and MLPs.

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Certain financial information included in Dividend.com is proprietary to Mergent, Inc. (“Mergent”) Copyright © 2014. Our research team runs the industry’s toughest high yield dividend screening test and only picks from the top 5%. Generate fixed income from corporates that prioritize environmental, social and governance responsibility. Helpful articles on different dividend investing options and how to best save, invest, and spend your hard-earned money.

The Dividend Achievers list plus straight years of dividend increases — is another great list to research. All 20 of these dividend stocks offer an above-average yield, making them stand out in a time when many companies don’t pay very high dividends. Even better, each one has a solid track record of steadily increasing their dividend and showing no signs of stopping. Because of that, they’re great income stocks to buy and hold for the long haul. Pfizer has paid dividends for roughly 340 consecutive quarters. The pharmaceutical giant’s investments in research and development are paying off.

Medtronic (MDT), one of the world’s largest makers of medical devices, is an income machine. Most recently, in May 2023, MDT lifted its quarterly payout by 1.5% to 69 cents per share. CLX boasts a reasonable payout ratio and ample free cash flow, which should ensure a 47th consecutive increase to the dividend in 2024. Rather, this consumer staples giant is all about defense and dividends.

Dividend Stocks 11-15

During the second quarter, Wells Fargo’s net interest income outperformed despite rising expenses, notes Morningstar strategist Eric Compton. The company’s second-quarter results were better than expected, with net broadband customer losses smaller than anticipated. We think Comcast is well positioned to limit broadband share losses and enjoy solid pricing power, says Morningstar director Mike Hodel. Comcast instituted a dividend in 2008 and has increased its payout by 17% annually, on average, notes Hodel. We think the balance sheet is sound, and shareholder returns are generally appropriate. Coca-Cola (KO) has long been known for quenching consumers’ thirst, but it’s equally effective at quenching investors’ thirst for income.

It should be a high-quality company with durable cash flow, a strong balance sheet, and visible growth potential. With that caveat in mind, here are 20 high-yield dividend stocks to consider buying for dividend income. Some people pursue a strategy of investing in stocks that issue regular dividends, so they can get consistent income, while simultaneously benefiting from any appreciation in that business’ share price. If that sounds like something you’d be interested in, then it’s prolly worth exploring these high-dividend yield stocks.

Brown-Forman (BF.B) is one of the largest producers and distributors of alcohol in the world. Jack Daniel’s Tennessee whiskey and Finlandia vodka are just two of its best-known brands, with the former helping drive long-term growth. Ecolab’s fortunes can wane as industrial needs fluctuate, though; for instance, when energy companies pare spending, ECL will feel the burn.