The post Best Dividend Stocks to Buy and Hold by Marc Guberti appeared first on Benzinga. Visit Benzinga to get more great content like this.
Want to make stable cash flow without selling your stocks? Dividend investing is a popular path for investors who want cash distributions that grow over time. Investors can reinvest these proceeds into additional shares, and companies tend to raise their dividends each year. Dividend investing creates the possibility of consistently growing cash flow that allows investors to hold onto their shares instead of selling them to cover living expenses in retirement. But some dividend stocks are better than others. This guide will showcase some of the top dividend stocks to consider.
Table of contents
[Show]
9 Best Dividend Stocks to Buy and Hold
Looking for some good dividend stock ideas? These are some of the best dividend stocks to buy and hold.
Symbol | Company | % Change | Price | Dividend Yield | Invest |
---|---|---|---|---|---|
IRM | Iron Mountain |
+ 0%
|
$60.21 | 2.6 / 4.3% | Buy stock |
CSCO | Cisco Systems |
+ 0%
|
$53.88 | 1.56 / 2.9% | Buy stock |
BAC | Bank of America |
+ 0%
|
$30.93 | 0.96 / 3.07% | Buy stock |
AVGO | Broadcom |
+ 0%
|
$854.10 | 18.4 / 2.22% | Buy stock |
DE | Deere |
+ 0%
|
$437.64 | 5 / 1.15% | Buy stock |
ELV | Elevance Health |
+ 0%
|
$471.40 | 5.92 / 1.25% | Buy stock |
AMT | American Tower |
+ 0%
|
$187.15 | 6.28 / 3.36% | Buy stock |
SYY | Sysco |
+ 0%
|
$70.95 | 2 / 2.78% | Buy stock |
ADP | Automatic Data Processing |
+ 0%
|
$251.96 | 5 / 1.98% | Buy stock |
1. Iron Mountain Inc. (NYSE: IRM)
Iron Mountain (NYSE:IRM)
60.210
0
[0%]
Sell
Trade Now
–
43.38 – 62.8755
291.85M
0.00K/1.45M
17.57B
291.85M
2.6/4.3%
191.780
243.07M
Iron Mountain stores paperwork for 95% of the Fortune 1,000 companies and works with various governments. The company keeps important documents secure for its clients. While the company got started with securing physical documents, it also offers cybersecurity services. Iron Mountain shares are up by 78% over the past five years and have a 4.2% dividend yield.
2. Cisco Systems Inc. (NASDAQ: CSCO)
Cisco Systems (NASDAQ:CSCO)
53.880
0
[0%]
Sell
Trade Now
–
38.61 – 54.14
4.08B
0.00K/18.75M
219.56B
4.08B
1.56/2.9%
54.840
4.07B
Cisco shares haven’t been too exciting for recent shareholders, but this year is shaping up to be an impressive one. Shares are up by 12% year to date and have a dividend yield approaching 3%. Cisco reported double-digit revenue growth in the recent quarter and gave investors good guidance. Cisco gives investors exposure to cybersecurity, cloud and software. With a price-to-earnings (P/E) ratio of just under 20, Cisco stock has been overlooked for years. Recent growth and the company’s opportunities may support a higher valuation.
3. Bank of America Corp. (NYSE: BAC)
Bank of America (NYSE:BAC)
30.930
0
[0%]
Sell
Trade Now
–
26.32 – 38.595
7.95B
0.00K/45.17M
245.78B
7.95B
0.96/3.07%
25.290
6.90B
Bank of America is the second-largest bank based on assets under management. Many consumers and business owners flocked to financial institutions like Bank of America when some regional banks defaulted. Shares have been flat over the past five years, but investors receive a 3% dividend yield. Bank of America reported 18.6% year-over-year net income growth in the second quarter, which can make the P/E ratio more attractive. The firm’s P/E ratio currently sits at 9.
4. Broadcom Inc. (NASDAQ: AVGO)
Broadcom (NASDAQ:AVGO)
854.100
0
[0%]
Sell
Trade Now
–
415.35 – 923.18
412.69M
0.00K/3.04M
352.47B
412.69M
18.4/2.22%
54.570
321.19M
Broadcom combines high dividend growth with rapid share price appreciation. The semiconductor giant is up by over 50% year to date and has almost quadrupled over the past five years. Despite that growth, Broadcom still maintains a dividend yield above 2%. In 2022, Broadcom raised its quarterly dividend per share from $4.10 to $4.60, marking a 12.2% year-over-year increase.
5. Deere & Co. (NYSE: DE)
Deere (NYSE:DE)
437.640
0
[0%]
Sell
Trade Now
–
328.77 – 450
293.19M
0.00K/1.67M
128.31B
293.19M
5/1.15%
15.840
292.76M
Deere & Co. manufactures farming, lawn care and other types of equipment. Although shares are roughly flat year to date, they have more than tripled over the past five years. Deere & Co. has a dividend yield of a little above 1%, but it has raised the dividend multiple times in some years. The quarterly dividend per share has jumped from 76 cents in 2020 to $1.25 in 2023. That’s a 64.5% increase over the past four years. Shares remain reasonably priced with a 15 P/E ratio.
6. Elevance Health Inc. (NYSE: ELV)
Elevance Health (NYSE:ELV)
471.400
0
[0%]
Sell
Trade Now
–
412 – 549.5
235.65M
0.00K/1.37M
111.08B
235.65M
5.92/1.25%
20.550
235.35M
Elevance Health is an American health insurance provider that makes steady payouts from health insurance policies. Shares are up by almost 80% over the past five years and come with a dividend yield above 1.25%. This year, the company raised its quarterly dividend per share from $1.28 to $1.48, marking a 15.6% year-over-year increase. Elevance Health’s double-digit year-over-year revenue and earnings growth can help power the stock higher and result in a high dividend growth rate.
7. American Tower Corp. (NYSE: AMT)
American Tower (NYSE:AMT)
187.150
0
[0%]
Sell
Trade Now
–
178.53 – 282.425
466.16M
0.00K/2.29M
87.24B
466.16M
6.28/3.36%
300.490
403.62M
American Tower is a real estate investment trust that owns over 225,000 cell towers. That portfolio helps the company generate high cash flow for investors with some appreciation. Shares are up by 26% over the past five years. The stock has a 3.3% dividend yield and a double-digit profit margin to support the payouts.
8. Sysco Corp. (NYSE: SYY)
Sysco (NYSE:SYY)
70.950
0
[0%]
Sell
Trade Now
–
69.22 – 87.4
505.11M
0.00K/2.45M
35.84B
505.11M
2/2.78%
56.770
504.42M
Sysco is a top food distributor that is more resilient to recessions than other stocks. Shares are only up by 6% over the past five years, but the stock has a dividend yield close to 3%. Sysco isn’t a growth stock by any means, but the company can produce reliable cash flow for investors without the same vulnerabilities as a high-tech company. Shares trade at a 21 P/E ratio and a 17 forward P/E ratio. Sysco also trades at a 0.5 price-to-sales ratio.
9. Automatic Data Processing Inc. (NASDAQ: ADP)
Automatic Data Processing (NASDAQ:ADP)
251.960
0
[0%]
Sell
Trade Now
–
201.46 – 273.89
411.99M
0.00K/1.74M
103.80B
411.99M
5/1.98%
58.340
411.89M
Automatic Data Processing shares have gained roughly 80% over the past five years. The company provides human resources management software. The software has helped the company maintain double-digit profit margins. Shares currently have a 20 P/E ratio and a 2% dividend yield.
Understanding Dividend Stocks
Dividend stocks pay a portion of their retained earnings to investors. Higher dividend yields attract more investors because their capital generates more cash flow. Investors should also consider a dividend’s sustainability and long-term appreciation. Overlooking these two factors can result in long-term losses and seeing your cash flow get cut because a company could not maintain the dividend. Dividend stocks can help investors earn passive income that can help with retirement and everyday expenses.
Benefits of Buying and Holding Dividend Stocks
Buying and holding dividend stocks presents many advantages for investors. The shares can appreciate in the long run, and you receive cash flow while you wait. Dividend-paying companies tend to increase their dividends every year, allowing you to reap more cash flow in the process. If you do not need the proceeds right away, you can reinvest the dividend into additional shares, ensuring your next dividend payment is higher than the previous one.
Where to Invest in Dividend Stocks
Investors can choose from many dividend stocks, but they can also choose from many brokers. These are some of the top places to invest in dividend stocks.
Building Your Dividend Portfolio for Long-Term Goals
A dividend portfolio can help you generate cash flow and navigate life after work. Dividend stocks can appreciate and raise their dividend payouts over time. Analyzing stocks and conducting your research can increase the likelihood of you selecting reliable dividend-paying stocks.
Frequently Asked Questions
What is the most reliable dividend stock?
Investors can choose from many reliable dividend stocks. However, it’s important for investors to consider their financial goals and risk tolerance before investing. Knowing those two things can help you determine what a reliable investment means to you.
Answer Link
How do I make $1,000 per month with dividends stock?
You can make $1,000 per month with dividend stocks by accumulating shares each month. Finding companies with higher yields can get you there faster, but you should avoid dividend stocks with high but unsustainable dividend payments.
Answer Link
Can you live off of dividends?
It is possible to live off of dividends. Most dividend-paying companies raise their dividends each year. That consistent growth combined with reinvestments and consistent contributions while you work can cover your retirement.
Answer Link
Best Dividend Stocks to Buy and Hold Methodology
This methodology involved looking for companies that have respectable dividend yields and appreciation potential. This list avoids high-growth, low-yielding dividend stocks. It also avoids high-yielding stocks that have seen their values decrease and have declining business models.
The post Best Dividend Stocks to Buy and Hold by Marc Guberti appeared first on Benzinga. Visit Benzinga to get more great content like this.