15 Top Stocks with Best Dividend Payouts

Dividend stocks are an excellent choice for investors seeking passive income. These stocks provide regular payouts to shareholders, typically on a quarterly basis. Not only do they offer income, but they also present opportunities for long-term growth. In this article, we will explore the 15 best dividend stocks available today, highlighting their unique features and investment potential.

Overview of Dividend Stocks

Dividend stocks are shares of companies that distribute a portion of their earnings to shareholders. These companies are often well-established and financially stable, making them attractive options for income-focused investors. Dividend stocks can be found across various industries, including energy, consumer goods, finance, and telecommunications.

Benefits of Dividend Investing

Investing in dividend stocks offers several advantages. First, it provides a reliable stream of income, making it an attractive option for individuals seeking passive income or looking to supplement their existing cash flow. Second, dividend stocks tend to be more stable than growth stocks, as dividend payments reflect the company’s profitability and financial health. Lastly, dividend stocks often outperform non-dividend-paying stocks in the long run, as they have historically provided higher total returns.

Now, let’s dive into the 15 best dividend stocks to consider for long-term investment.

Exxon Mobil: A Stable Dividend Performer

Exxon Mobil is a dominant integrated oil major with operations spanning the globe. Despite a challenging pricing environment for oil and gas, Exxon has consistently performed well, thanks to its diverse assets and global reach. Notably, the company maintained its dividend even during the 2020 oil price crash, highlighting its commitment to shareholders.

Exxon continues to invest in growth, exemplified by its offshore oil field in Guyana, one of the industry’s most significant discoveries in recent years. This ongoing investment in expanding its business positions Exxon for future dividend growth and long-term stability. With one of the strongest balance sheets in the world, income investors can rely on Exxon’s ability to sustain its dividend payments.

Key Points:

  • Exxon Mobil is a dominant integrated oil major with global operations.
  • The company’s diverse assets and geographic positioning contribute to its stability.
  • Exxon is committed to maintaining its dividend, even during challenging market conditions.
  • Ongoing investments in growth opportunities pave the way for future dividend growth.

Coca-Cola: A Consistent Dividend Grower

Warren Buffett’s Berkshire Hathaway has long held a position in Coca-Cola, making it one of his most successful investments. Coca-Cola’s consistency and reliable dividend track record have rewarded shareholders with billions of dollars in capital gains and dividends over the decades.

Coca-Cola is known for its annual dividend increases, a tradition dating back to 1961. The company’s products, known for their resilience during economic downturns, make Coca-Cola a timely purchase for investors concerned about potential recessions. As a stable consumer goods company, Coca-Cola offers long-term dividend growth and a history of weathering economic storms.

Key Points:

  • Coca-Cola has a long history of consistent dividend increases.
  • Warren Buffett’s investment in Coca-Cola highlights its reliability and long-term potential.
  • The beverage sector, including Coca-Cola, performs well during recessions.
  • Investing in Coca-Cola offers stability and the opportunity for dividend growth.

Pfizer: Capitalizing on COVID-19 Vaccine Success

Pfizer, a leading pharmaceutical giant, experienced record-breaking revenue during the COVID-19 pandemic due to its highly successful COVID-19 vaccine. While investors expected a decline in revenue after the pandemic, a recent uptick in COVID-19 cases may renew interest in the vaccines, potentially sustaining Pfizer’s revenue stream.

Even without considering future vaccine revenues, Pfizer is in a better position now than before the pandemic. Analysts project significant revenue growth for the company, with estimated revenue of $67 billion next year, surpassing the pre-pandemic level in 2019. Pfizer’s successful investment of its vaccine windfall into new growth opportunities and the recent stock dip present an attractive opportunity for investors.

Key Points:

  • Pfizer experienced record-breaking revenue with its COVID-19 vaccine.
  • A recent uptick in COVID-19 cases may sustain vaccine-related revenue.
  • Pfizer’s revenue outlook for next year shows significant growth potential.
  • The recent stock dip creates a prime buying opportunity for investors.

Wells Fargo: Overcoming Scandals and Delivering Results

Wells Fargo, once plagued by scandals, has made significant progress in rebuilding its reputation and financial performance. Despite paying hefty fines for its fake accounts scandals, the company’s asset cap imposed by the Federal Reserve limited its exposure to low-interest-rate securities and loans, ultimately benefiting its financial stability.

Wells Fargo’s well-positioned balance sheet and outperformance compared to its peers in 2023 demonstrate its resilience in the current interest rate environment. Despite industry concerns affecting the stock’s performance, Wells Fargo’s flat performance for the year presents a buying opportunity for investors interested in a banking stock poised for growth.

Key Points:

  • Wells Fargo has made progress in rebuilding its reputation and financial performance.
  • The Federal Reserve’s asset cap has benefited Wells Fargo’s balance sheet.
  • Wells Fargo’s earnings results outperform many of its peers.
  • The stock’s flat performance creates a favorable buying opportunity.

Verizon: Weathering Industry Challenges

Verizon is one of the three dominant wireless carriers in the United States, known for its steady income stream. While its rival, AT&T, shocked investors with a dividend cut following its Time Warner acquisition, Verizon remains in a better position. However, the industry faces rising competition and high costs associated with 5G network rollouts.

While recent reports of potential legal liabilities related to lead in old telephone cables have negatively affected sentiment, they have also driven Verizon’s stock price to an unsustainably low level. With a forward price-to-earnings ratio of just seven and a nearly 8% dividend yield, Verizon presents an attractive investment opportunity.

Key Points:

  • Verizon is a dominant U.S. wireless carrier with a steady income stream.
  • Investor concerns about legal liabilities have driven down the stock price.
  • Verizon’s stock is undervalued, with an attractive dividend yield.
  • The company anticipates improved cash flows starting in 2024.

American Tower: Undervalued Communication Infrastructure

American Tower operates as a real estate investment trust (REIT) and controls a vast network of over 226,000 communications sites, primarily cell phone towers. The REIT sector has faced challenges due to rising interest rates and concerns about higher debt interest payments. However, these concerns have been exaggerated, leading to a significant decline in American Tower’s stock price.

Despite the stock’s decline, American Tower offers a strong portfolio of assets and its highest dividend yield in five years. With the stock trading at less than 18 times forward funds from operations (FFO), American Tower presents an excellent opportunity for income investors looking to benefit from the growing demand for communication infrastructure.

Key Points:

  • American Tower operates a vast network of communications sites.
  • Concerns about rising interest rates have affected the stock’s performance.
  • The stock is undervalued, with an attractive dividend yield.
  • American Tower benefits from the increasing demand for communication infrastructure.

TC Energy: Energy Diversification and Value Unlocking

TC Energy, one of Canada’s largest energy companies, is primarily known for its oil and gas pipelines in the United States and Canada. The company has also diversified its operations, including a large power generation business focused on low-cost nuclear energy. TC Energy’s investments in Mexican gas pipelines have proven successful, capitalizing on Mexico’s industrialization wave.

While TC Energy’s stock has suffered from rising interest rates and investor concerns, the company’s recent split announcement aims to unlock shareholder value. The split will separate the oil pipeline business from a greener, more environmentally friendly entity, providing potential upside and dividend opportunities for investors. With a dividend yield of approximately 8%, TC Energy offers an attractive income potential.

Key Points:

  • TC Energy is a diversified energy company with operations in the United States, Canada, and Mexico.
  • The company’s recent split announcement aims to unlock shareholder value.
  • TC Energy benefits from its investments in low-cost nuclear energy and Mexican gas pipelines.
  • The stock’s decline presents an opportunity for investors, with an attractive dividend yield.

National Storage Affiliates: Compelling Opportunity in Storage REITs

National Storage Affiliates is a leading player in the storage real estate investment trust (REIT) sector. Founded in 2013, the company has achieved remarkable growth, generating over $800 million in annual revenues. Despite the storage REIT sector facing challenges from rising interest rates, National Storage Affiliates offers a compelling investment opportunity.

The stock’s decline over the past year, combined with its decent underlying earnings results, has created an attractive valuation. With shares selling for just 12 times funds from operations (FFO) and a dividend yield of 6.7%, National Storage Affiliates presents a favorable opportunity for income investors seeking exposure to the storage industry’s growth potential.

Key Points:

  • National Storage Affiliates is a leading player in the storage REIT sector.
  • The company has achieved significant growth since its founding in 2013.
  • Despite challenges in the storage REIT sector, National Storage Affiliates offers an attractive valuation.
  • The stock’s decline presents a buying opportunity, with an appealing dividend yield.

Kimberly-Clark: Recovery and Relative Value

Kimberly-Clark, America’s leading consumer paper products company, offers a wide range of essential goods, including toiletries and cleaning products. The stock experienced a brief spike during the early days of the pandemic due to increased demand. However, a sales slowdown combined with a surge in commodity prices impacted the company’s profit margins in 2022.

Looking forward, Kimberly-Clark’s sales are returning to normal, and the inflationary wave has started to subside. This provides relief for the company’s profit margins. With shares trading at approximately 21 times forward earnings and offering a 3.7% dividend yield, Kimberly-Clark presents a relative value opportunity for investors.

Key Points:

  • Kimberly-Clark is America’s leading consumer paper products company.
  • Sales are returning to normal, and inflation pressures are subsiding.
  • Shares offer a relative value opportunity, with an attractive dividend yield.
  • Investing in Kimberly-Clark provides stability and potential dividend growth.

Pacific Airport Group: Capitalizing on Mexican Tourism

Pacific Airport Group, a Mexican airport operator, manages 12 airports in Mexico and two in Jamaica. The company holds prized concessions for airports in Guadalajara, Tijuana, Puerto Vallarta, Los Cabos, and other popular destinations. With concessions running until 2048 and potential renewals for an additional 50 years, Pacific Airport Group benefits from Mexico’s booming tourism industry.

Despite the challenges posed by the pandemic, Pacifico experienced a surge in airport traffic, surpassing pre-pandemic levels. The company’s consistent growth and favorable prospects make it an attractive investment opportunity. With a variable dividend policy, Pacific Airport Group pays out a significant portion of its free cash flow to shareholders, providing an additional income stream for investors.

Key Points:

  • Pacific Airport Group manages airports in Mexico and Jamaica.
  • The company benefits from Mexico’s booming tourism industry.
  • Airport traffic has surpassed pre-pandemic levels, indicating strong growth potential.
  • The company’s variable dividend policy offers an attractive income opportunity.

Consolidated Edison: A Sturdy Utility Stock

Consolidated Edison, founded in 1823, is one of the oldest electric utilities in the world. The company has a long-standing presence in New York City and a solid track record as a blue-chip stock. Despite its performance rarely being flashy, Consolidated Edison consistently provides its shareholders with dividend checks.

In recent years, Consolidated Edison became one of the largest solar operators in the country before selling its solar business. While utility stocks faced challenges in the rising interest rate environment, Consolidated Edison is poised to rally to new highs as interest rates decline. With stable operations and growth opportunities, Consolidated Edison offers investors a reliable dividend income stream.

Key Points:

  • Consolidated Edison is one of the oldest electric utilities in the world.
  • The company consistently provides dividend checks to its shareholders.
  • The stock is poised for a potential rally when interest rates decline.
  • Investing in Consolidated Edison offers stability and a reliable dividend income stream.

Ecopetrol: Profitability Amidst Political Noise

Ecopetrol, a state-managed Colombian oil company, has remained profitable despite political noise and challenges in the oil industry. The Colombian government owns the majority of Ecopetrol’s outstanding stock, relying on the company to fund its treasury through significant dividends.

Despite political uncertainties, Ecopetrol has generated record profits and currently trades at just three times earnings. The company’s commitment to maintaining a variable dividend policy, based on annual earnings, provides an attractive dividend yield for investors seeking income opportunities.

Key Points:

  • Ecopetrol is a state-managed Colombian oil company.
  • The company remains profitable despite political noise.
  • Ecopetrol trades at a low earnings multiple, providing an attractive valuation.
  • The company offers a variable dividend policy and an appealing dividend yield.

Discover: Undervalued High-Yield Lender

Discover is widely known for its credit card network. Unlike other credit card companies, Discover engages in lending rather than offloading that service to third parties. This approach positions Discover as one of the nation’s largest high-yield lenders. Additionally, the company operates a large Federal Deposit Insurance Corp.-insured bank to gather deposits for its credit card lending.

The banking industry’s chaos and general concerns about credit performance during recessions have affected high-yield lenders like Discover. Regulatory issues related to merchant fees have further impacted the stock’s performance. However, these market conditions have created a buying opportunity for investors. Discover’s low price-to-earnings ratio, aggressive capital return programs, and increasing dividend yield make it an attractive investment option.

Key Points:

  • Discover engages in lending and operates a large FDIC-insured bank.
  • Concerns about credit performance and regulatory issues have affected the stock’s performance.
  • Discover’s low valuation and aggressive capital return programs make it an attractive investment.
  • The company offers an increasing dividend yield for income-focused investors.

Tyson Foods: Profit Margin Recovery Potential

Tyson Foods, a packaged foods company specializing in meat products, faces temporary challenges due to the spike in livestock prices, which have impacted profit margins. However, with declining crop prices, livestock prices are expected to return to normal, stabilizing Tyson’s profit margins.

Considering Tyson’s historical earnings, the stock currently trades at just 10 times its 2019 earnings level. As profit margins stabilize and return to pre-pandemic levels, Tyson presents an attractive investment opportunity. Additionally, the stock offers a generous dividend, making it a compelling choice for income-focused investors.

Key Points:

  • Tyson Foods specializes in meat products and faces challenges from livestock price spikes.
  • Livestock price stabilization is expected, benefiting Tyson’s profit margins.
  • The stock trades at an attractive valuation, with significant potential for earnings growth.
  • Tyson offers a generous dividend, making it appealing to income-focused investors.

Northwest Natural: A Dividend King in the Utility Sector

Northwest Natural is a natural gas utility known as a “dividend king” for consistently increasing its dividend for at least 50 consecutive years. As a utility company operating in America’s largest city, Northwest Natural benefits from a stable customer base and growth opportunities.

Despite a decline in the stock price over the past three years, Northwest Natural offers an attractive dividend yield. The stock’s resilience and long-term dividend growth make it an appealing investment for income-focused investors seeking stability and consistent payouts.

Key Points:

  • Northwest Natural is a natural gas utility and a “dividend king.”
  • The company consistently increases its dividend for at least 50 consecutive years.
  • Despite recent stock price declines, Northwest Natural offers an attractive dividend yield.
  • Investing in Northwest Natural provides stability and reliable dividend income.

Conclusion

Investing in dividend stocks can be a lucrative strategy for generating passive income and long-term growth. The 15 best dividend stocks highlighted in this article offer a range of opportunities across various industries. From stable performers like Exxon Mobil and Coca-Cola to undervalued stocks like Wells Fargo and American Tower, these companies present attractive options for income-focused investors.

Understanding the unique features and potential of each dividend stock allows investors to build a diversified portfolio that balances income and long-term growth. By selecting the best dividend stocks, investors can achieve their financial goals and enjoy the benefits of passive income in the years to come.