If you're seeking a reliable long-term passive income and potential for capital appreciation, dividend-paying stocks can be an excellent addition to your portfolio. In this article, we explore the 15 Best Dividend Stocks To Buy Now, featuring some of the most stable, high-quality companies for long-term investors. Tailored for investors exploring opportunities in the high-low-yield U.S. dividend stock market.
Why Invest in Dividend Stocks?
Dividend stocks are popular due to two of their main benefits:
Steady Income: Dividends provide a consistent income stream, which can be reinvested for compounding or withdrawn for personal use.
Long-Term Growth: Companies that pay dividends often have strong financials, making them attractive for capital appreciation.
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Dividend Stock To Buy Based on Our Opinion
Walmart (WMT)
Dividend Yield: ~ 1.4%
Payout Ratio: ~ 35%
Dividend Growth (5Y CAGR): ~ 1.9%
Dividend Stability: High
Walmart is a retail giant with a history of steady growth and consistent dividend payments. Its diversified business model and global presence make it a strong contender for dividend investors.
Our take on this stock's dividend
Walmart's dividend profile is characterized by stability, consistent growth, and sustainability with a +73.76% Year to date growth rate. While the dividend's yield is relatively low, the company's strong financial health and long history of dividend increases make it a reliable choice for long-term, conservative investors.
IBM (IBM)
Dividend Yield: ~ 4.8%
Payout Ratio: ~ 70%
Dividend Growth (5Y CAGR): ~ 0.6%
Dividend Stability: Moderate
IBM offers a robust dividend yield and a strong focus on cloud computing and AI technologies, making it a solid choice for income-focused investors.
Our take on this stock's dividend
IBM is suitable for investors seeking stable income as IMB's stock has grown +39.91% Year to date, but those prioritizing dividend growth or financial stability may prefer alternatives with lower payout ratios and stronger growth prospects. Investors may want to consider diversifying within the IT sector for a more balanced exposure.
Procter & Gamble (PG)
Dividend Yield: ~ 2.5%
Payout Ratio: ~ 60%
Dividend Growth (5Y CAGR): ~ 5.5%
Dividend Stability: Very High
As a consumer staples leader, P&G has been a consistent dividend payer for decades, ideal for stability in volatile markets.
Our take on this stock's dividend
Procter & Gamble is a reliable dividend stock with a strong track record of growth and sustainability with a +22.36% Year to date. Its consistent dividend increases, robust financial health, and focus on shareholder returns make it an attractive option for long-term income investors.
Prospect Capital (PSEC)
Dividend Yield: ~ 10%
Payout Ratio: ~ 90%+
Dividend Growth (5Y CAGR): ~ Flat
Dividend Stability: Low
For high-yield seekers, Prospect Capital provides exposure to business development companies (BDCs) with impressive income potential.
Our take on this stock's dividend
PSEC remains an attractive option for income-focused investors due to its high yield and monthly payouts. However, the recent dividend cut and ongoing NAV decline highlight the need for caution as it has a -20.87% Year to date. Investors must proceed with caution, but could potentially be an attractive dividend stock for short-term gains.
Main Street Capital (MAIN)
Dividend Yield: ~ 6.6%
Payout Ratio: ~ 80%
Dividend Growth (5Y CAGR): ~ 2.5%
Dividend Stability: Moderate
Main Street Capital focuses on middle-market investments, delivering steady monthly dividends that appeal to long-term low-yielding dividend stock investors.
Our take on this stock's dividend
Main Street Capital offers a compelling dividend profile with a high yield, consistent growth, and supplemental payouts with a +26.35% Year to date. Its conservative leverage, strong DNII coverage, and robust financial health make it a reliable choice for income-focused investors.
Apple (AAPL)
Dividend Yield: ~ 0.5%
Payout Ratio: ~ 15%
Dividend Growth (5Y CAGR): ~ 7.5%
Dividend Stability: Very High
Although Apple’s yield is modest, its unparalleled growth and consistent dividend increases make it a must-have for growth-oriented portfolios.
Our take on this stock's dividend
Apple's dividend is modest but reliable, supported by a low payout ratio and consistent growth with a +22.10% Year to date. It is best suited for investors seeking long-term capital appreciation with a small but growing income component making it a best dividend stock to buy now.
Aflac (AFL)
Dividend Yield: ~ 2.3%
Payout Ratio: ~ 25%
Dividend Growth (5Y CAGR): ~ 10%
Dividend Stability: Very High
Aflac, a leading insurance provider, is known for its reliable dividends and strong financial fundamentals.
Our take on this stock's dividend
Aflac's dividend is highly sustainable, supported by strong financials, a low payout ratio, and a long history of growth with a +38.21% Year to date. While its yield is not the highest in the sector, its consistent increases and financial stability make it an attractive option for dividend-focused investors seeking reliability and long-term growth.
Emerson Electric (EMR)
Dividend Yield: ~ 2.7%
Payout Ratio: ~ 50%
Dividend Growth (5Y CAGR): ~ 3.5%
Dividend Stability: High
Emerson Electric’s exposure to industrial automation and infrastructure markets ensures long-term growth potential and dividend reliability.
Our take on this stock's dividend
Emerson Electric Co. offers a reliable and stable dividend, backed by its strong free cash flow and conservative payout ratio with a +36.65% Year to date stock growth. While the yield is relatively low compared to other dividend stocks, the company's long history of dividend growth and financial strength make it a solid choice for long-term investors seeking stability.
JPMorgan Chase & Co. (JPM)
Dividend Yield: ~ 2.8%
Payout Ratio: ~ 30%
Dividend Growth (5Y CAGR): ~ 11%
Dividend Stability: Very High
As one of the largest U.S. banks, JPMorgan combines stability, growth, and a commitment to rewarding shareholders with dividends.
Our take on this stock's dividend
JPMorgan Chase & Co. is a solid dividend stock for long-term investors seeking stability and consistent growth. While its yield is lower than other dividend stocks, its low payout ratio, strong financial health, and history of dividend increases make it a reliable choice with a staggering +46.96% Year to date. However, investors should consider current valuation levels and potential upside before initiating or adding to positions.
Chevron (CVX)
Dividend Yield: ~ 3.8%
Payout Ratio: ~ 50%
Dividend Growth (5Y CAGR): ~ 6%
Dividend Stability: High
With its focus on energy production and a long track record of dividend payments, Chevron is a favourite among income investors.
Our take on this stock's dividend
Chevron offers a compelling dividend profile with a strong yield, consistent growth, and sustainable payout with a +8.96% Year to date. Its robust cash flow, disciplined cost management, and production growth outlook further support its dividend reliability. For income-focused investors, Chevron remains a solid choice, particularly at its current valuation of $162.53/share.
Starbucks (SBUX)
Dividend Yield: ~ 2.1%
Payout Ratio: ~ 55%
Dividend Growth (5Y CAGR): ~ 10%
Dividend Stability: High
Starbucks continues to expand globally while maintaining consistent dividend payouts, appealing to both growth and income-focused investors.
Our take on this stock's dividend
Starbucks is a solid choice for dividend investors seeking consistent income and long-term growth. However, given its premium valuation, consider buying on dips to enhance yield as the +4.86% Year to date could be risky. A potential entry point could be around $95, with a target price of $110 based on its historical trading range and growth prospects.
Cisco Systems (CSCO)
Dividend Yield: ~ 2.9%
Payout Ratio: ~ 45%
Dividend Growth (5Y CAGR): ~ 6%
Dividend Stability: High
Cisco offers strong returns through its dividends and its leadership in networking technologies, making it a tech dividend powerhouse.
Our take on this stock's dividend
Cisco Systems offers a reliable dividend with moderate growth potential, making it an attractive option for income-focused investors. Its strong financial position and consistent dividend increases highlight its commitment to shareholder returns, and a +17.95% Year to date.
Microsoft (MSFT)
Dividend Yield: ~ 0.8%
Payout Ratio: ~ 30%
Dividend Growth (5Y CAGR): ~ 10%
Dividend Stability: Very High
Microsoft’s market dominance, consistent growth with a +13.82% Year to date, and dividend increases make it a reliable choice for dividend-focused tech investors.
Our take on this stock's dividend
Microsoft's dividend profile is robust, with consistent growth, a sustainable payout ratio, and strong financial backing. While the yield is modest, the company's dividend growth and financial health make it a reliable choice for long-term income investors.
Mastercard (MA)
Dividend Yield: ~ 0.6%
Payout Ratio: ~ 20%
Dividend Growth (5Y CAGR): ~ 17%
Dividend Stability: Very High
Although its yield is lower, Mastercard’s exceptional growth potential, with a +23.91% Year to date, and reliable dividend hikes make it a worthy addition.
Our take on this stock's dividend
Mastercard's dividend is best suited for investors seeking a combination of modest income and strong capital appreciation potential. While its yield is lower than other dividend stocks, the company's consistent dividend growth, robust financial health, and shareholder-friendly policies make it an attractive long-term investment.
Johnson & Johnson (JNJ)
Dividend Yield: ~ 3.1%
Payout Ratio: ~ 50%
Dividend Growth (5Y CAGR): ~ 17%
Dividend Stability: Very High
As a leader in healthcare, Johnson & Johnson’s steady growth and robust dividend history make it a staple in any income portfolio regardless of its current -1.42% Year to date stock growth.
Our take on this stock's dividend
Johnson & Johnson is a reliable dividend stock with a long history of consistent increases, a sustainable payout ratio, and strong financial health. While its yield is slightly lower than other dividend stocks, its stability and growth potential make it a solid choice for income-focused investors. For those looking to initiate or add to a position, the current price near $154 offers a reasonable entry point.
15 top dividend stocks to buy now
How to Choose the Best Dividend Stocks?
When selecting dividend stocks investors must consider the following:
Dividend Yield: Higher yields provide better immediate income but may carry more risk. As we highlighted with stocks like Prospect Capital (PSEC).
Dividend Growth: Look for companies with a history of increasing dividends, similar to companies such as Microsoft (MSFT).
Financial Stability: Strong cash flows and manageable debt levels are key indicators of sustainable dividends.
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Conclusion
The 15 Best Dividend Stocks To Buy Now offer a mix of high yields, reliable payouts, and growth potential. Whether you're a U.S.-based investor or looking to diversify internationally, this list provides a solid foundation for building a dividend-focused portfolio.
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