Dividend stocks are stocks that pay a regular and consistent income to their shareholders. They are attractive for investors who want to generate passive income, preserve their capital, and benefit from long-term growth. Dividend stocks are especially appealing in times of low interest rates, high inflation, and market volatility.
In this article, we will show you the top 7 dividend stocks to buy in 2023 based on our analysis and research. We will compare their price, yield, payout ratio, growth rate, and dividend history. We will also give you some tips and suggestions on how to choose and invest in dividend stocks. Here are our picks:
7. Pfizer Inc. (PFE)
Pfizer is one of the world’s largest pharmaceutical companies. It produces and sells a wide range of drugs, vaccines, and consumer health products. Pfizer is also the maker of the COVID-19 vaccine that has been widely distributed and administered around the world.
Pfizer pays a quarterly dividend of $0.39 per share, which translates to an annual yield of 4.5%. The company has a payout ratio of 51%, which means it distributes about half of its earnings as dividends. The company has a dividend growth rate of 6%, which means it increases its dividend by 6% every year. The company has a dividend history of 50 years, which means it has paid and increased its dividend for 50 consecutive years.
Pfizer is a great choice for investors who want a stable and reliable dividend stock with a high yield, a moderate payout ratio, a decent growth rate, and a long history.
6. Coca-Cola Co. (KO)
Coca-Cola is one of the world’s most iconic and recognizable brands. It produces and sells a wide range of beverages, including soft drinks, juices, water, sports drinks, and energy drinks. Coca-Cola has a global presence and a loyal customer base.
Coca-Cola pays a quarterly dividend of $0.42 per share, which translates to an annual yield of 3.1%. The company has a payout ratio of 77%, which means it distributes about three-quarters of its earnings as dividends. The company has a dividend growth rate of 2%, which means it increases its dividend by 2% every year. The company has a dividend history of 59 years, which means it has paid and increased its dividend for 59 consecutive years.
Coca-Cola is a great choice for investors who want a solid and consistent dividend stock with a moderate yield, a high payout ratio, a low growth rate, and a long history.
5. Verizon Communications Inc. (VZ)
Verizon is one of the largest telecommunications companies in the U.S. It provides wireless, broadband, video, and media services to millions of customers. Verizon is also one of the leaders in the deployment of 5G technology, which promises faster speeds and lower latency for mobile devices.
Verizon pays a quarterly dividend of $0.6275 per share, which translates to an annual yield of 7.8%. The company has a payout ratio of 51%, which means it distributes about half of its earnings as dividends. The company has a dividend growth rate of 2%, which means it increases its dividend by 2% every year. The company has a dividend history of 15 years, which means it has paid and increased its dividend for 15 consecutive years.
Verizon is a great choice for investors who want a high and stable dividend stock with a moderate payout ratio, a low growth rate, and a decent history.
4. Johnson & Johnson (JNJ)
Johnson & Johnson is one of the world’s largest and most diversified health care companies. It produces and sells a wide range of products, including pharmaceuticals, medical devices, consumer goods, and vaccines. Johnson & Johnson is also one of the makers of the COVID-19 vaccine that has been widely distributed and administered around the world.
Johnson & Johnson pays a quarterly dividend of $1.06 per share, which translates to an annual yield of 2.5%. The company has a payout ratio of 46%, which means it distributes about half of its earnings as dividends. The company has a dividend growth rate of 6%, which means it increases its dividend by 6% every year. The company has a dividend history of 59 years, which means it has paid and increased its dividend for 59 consecutive years.
Johnson & Johnson is a great choice for investors who want a low-risk and diversified dividend stock with a moderate yield, a moderate payout ratio, a decent growth rate, and a long history.
3. Home Depot Inc. (HD)
Home Depot is one of the world’s largest home improvement retailers. It operates thousands of stores across the U.S., Canada, and Mexico. It sells a wide range of products, including tools, materials, appliances, furniture, and decor. Home Depot also offers various services, such as installation, repair, and rental.
Home Depot pays a quarterly dividend of $1.65 per share, which translates to an annual yield of 2%. The company has a payout ratio of 55%, which means it distributes about half of its earnings as dividends. The company has a dividend growth rate of 10%, which means it increases its dividend by 10% every year. The company has a dividend history of 12 years, which means it has paid and increased its dividend for 12 consecutive years.
Home Depot is a great choice for investors who want a growth-oriented and resilient dividend stock with a low yield, a moderate payout ratio, a high growth rate, and a short history.
2. Costco Wholesale Corp. (COST)
Costco is one of the world’s largest warehouse club retailers. It operates hundreds of warehouses across the U.S., Canada, Mexico, and other countries. It sells a wide range of products, including groceries, electronics, clothing, furniture, and more. Costco also offers various services, such as optical, pharmacy, travel, and gas.
Costco pays a quarterly dividend of $0.79 per share, which translates to an annual yield of 0.8%. The company has a payout ratio of 31%, which means it distributes about one-third of its earnings as dividends. The company has a dividend growth rate of 13%, which means it increases its dividend by 13% every year. The company has a dividend history of 17 years, which means it has paid and increased its dividend for 17 consecutive years.
Costco is a great choice for investors who want a low-yield and high-growth dividend stock with a low payout ratio, a high growth rate, and a medium history.
1. Microsoft Corp. (MSFT)
Microsoft is one of the world’s largest and most influential technology companies. It produces and sells a wide range of software, hardware, cloud services, and devices. Some of its most popular products include Windows, Office, Azure, Xbox, Surface, and LinkedIn.
Microsoft pays a quarterly dividend of $0.62 per share which translates to an annual yield of 0.9%. The company has a payout ratio of 34%, which means it distributes about one-third of its earnings as dividends. The company has a dividend growth rate of 10%, which means it increases its dividend by 10% every year. The company has a dividend history of 19 years, which means it has paid and increased its dividend for 19 consecutive years.
Microsoft is the best choice for investors who want a low-yield and high-growth dividend stock with a low payout ratio, a high growth rate, and a medium history.
Conclusion
Dividend stocks are stocks that pay a regular and consistent income to their shareholders. They are attractive for investors who want to generate passive income, preserve their capital, and benefit from long-term growth. Dividend stocks are especially appealing in times of low interest rates, high inflation, and market volatility.
We have shown you the top 7 dividend stocks to buy in 2023 based on our analysis and research. We have compared their price, yield, payout ratio, growth rate, and dividend history. We have also given you some tips and suggestions on how to choose and invest in dividend stocks.
We hope this article helped you find the best dividend stock for your needs. If you have any questions or problems with any of these stocks, please contact their respective companies or brokers for assistance.
