7 Best Dividend Stocks to Buy Now in 2024: High-Yield at Decent Valuation
Updated February 4, 2024
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- The Best Dividend Stocks to Buy Now
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- What Are Dividend Stocks?
- How to Choose High Dividend Stocks Now
- What to Consider When Choosing Good Dividend Stocks to Buy Now
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- Frequently Asked Questions
- Final Thoughts
| Company | Dividend Yield |
|---|---|
| Main Street Capital Corp (MAIN) | 6.97% |
| Gladstone Land Corp. (LAND) | 3.88% |
| Realty Income Corp. (O) | 5.96% |
| Legal & General Group (LGGNF) | 8.67% |
| Coca-Cola Co. (KO) | 3.15% |
| Northwest Natural Holding Co. (NWN) | 5.32% |
| Energy Transfer LP (ET) | 9.0% |
When it comes to investing, dividend stocks are a popular choice for those seeking a balance of income and stability.
In this article, you’ll learn the basics, advantages, considerations and reliability of specific dividend stocks.
Regardless of your investor profile, whether seasoned or just starting out, this article will offer a balanced perspective to guide you through the intricacies of this financial avenue.
The Best Dividend Stocks to Buy Now
The top dividend stocks to buy now will depend on your goals and budget. However, here is a selection of some of the best and most popular dividend options.
1. Main Street Capital Corp (MAIN)
Dividend Yield: 6.97%
Main Street Capital is a business development company (BDC) that specializes in providing long-term debt and equity capital to lower middle-market companies.
It operates across various industries, supporting businesses with financing solutions.
Main Street Capital is known for its focus on fostering growth and creating value for both investors and portfolio companies.
The company has a track record of maintaining a consistent dividend payout and has historically demonstrated stability in its yields, making it one of the best income stocks to buy now.
Investors appreciate Main Street Capital for its commitment to regular dividend distributions and its strategic approach to supporting the growth of small to mid-sized businesses.
2. Gladstone Land Corp. (LAND)
Dividend Yield: 3.88%
Second on the list of dividend stocks to buy now is Gladstone Land, a real estate investment trust (REIT) that focuses on acquiring and managing farmland.
The company's portfolio includes a diverse range of agricultural properties leased to farmers.
Gladstone Land is known for providing investors with exposure to the agriculture sector and the potential for stable returns from leasing farmland.
With a current dividend yield of 3.88%, Gladstone Land has historically offered an attractive income stream for investors and can boast nine years of dividend increase.
The company's dividends are often backed by the stable and recurring nature of agricultural leases, making it a noteworthy choice for those seeking a combination of income and real estate exposure.
3. Realty Income Corp. (O)
Dividend Yield: 5.96%
One of the best dividend stocks to buy now is Realty Income Corp.
Often referred to as 'The Monthly Dividend Company', it is a well-known real estate investment trust (REIT) that primarily invests in commercial properties.
The company is recognized for its monthly dividend payments, providing investors with a consistent income stream.
Realty Income owns a diverse portfolio of retail and commercial properties across various industries.
Realty Income has a remarkable history of increasing its dividend and is currently in its 31st year of consistent dividend increase.
The company's monthly dividend payments and its reputation for reliability make it a popular choice among income-oriented investors seeking stability in the real estate sector.
4. Legal & General Group (LGGNF)
Dividend Yield: 8.67%
One of the best income stocks to buy now is Legal & General Group, a multinational financial services and insurance company. It’s also considered one of the top high yield stocks to buy now.
It is known for its broad range of services, including life insurance, asset management, and retirement solutions.
The company operates globally, providing financial protection and investment management services to individuals and institutions.
The company's historical dividend performance showcases its stability and resilience in the financial services industry, making it an appealing option for investors seeking exposure to the insurance and asset management sectors.
5. Coca-Cola Co. (KO)
Dividend Yield: 3.15%
The Coca-Cola Company is a multinational beverage corporation widely recognized for its iconic soft drink brands and is considered one of the best dividend stocks to buy right now.
With a presence in over 200 countries, Coca-Cola is a global leader in the non-alcoholic beverage industry, offering a diverse portfolio of carbonated and non-carbonated drinks.
Coca-Cola has a current dividend yield of 3.15% and a 61-year history of paying dividend increases.
The company's resilience and market presence contribute to its appeal to investors seeking stability and a reliable income stream from a well-established consumer staples company.
6. Northwest Natural Holding Co. (NWN)
Dividend Yield: 5.32%
Northwest Natural Holding Co. is a utility company engaged in the distribution of natural gas.
The company serves residential, commercial, and industrial customers in the Pacific Northwest. It is known for its commitment to providing reliable and sustainable energy solutions to its customers.
Northwest Natural Holding Co. has a 68-year history of offering investors consistent dividends quarterly.
The utility sector's stability and the essential nature of natural gas services contribute to the company's appeal to income-focused investors seeking reliability in their investment portfolios.
7. Energy Transfer LP (ET)
Dividend Yield: 9%
As one of the top high yield stocks to buy now, Energy Transfer LP is a master limited partnership (MLP) engaged in the transportation, storage, and distribution of energy resources, including commodities such as natural gas, crude oil, and refined products.
The company operates a vast network of pipelines and other infrastructure assets, playing a crucial role in the energy supply chain.
MLPs, including Energy Transfer, are known for their income-generating potential, often offering higher-than-average dividend yields.
Investors interested in the energy sector and seeking income opportunities may find Energy Transfer LP appealing, but it's essential to consider the inherent risks associated with MLP investments.
Investors should conduct thorough research and consider their individual financial goals and risk tolerance before making investment decisions.
Additionally, it's advisable to stay updated on the latest financial information and market conditions for any investment.
What Are Dividend Stocks?
High dividend stocks to buy now are shares of companies that regularly distribute a portion of their earnings to shareholders in the form of dividends.
They are typically paid out in cash, although they can also be issued as additional shares of stock.
One of the primary reasons to buy good dividend stocks now is the regular income they can provide.
Investors, especially those looking for consistent cash flow, often turn to dividend-paying stocks to supplement their investment returns.
Additionally, companies that pay dividends tend to be more established and financially stable.
This stability makes dividend stocks an appealing choice for conservative investors seeking a reliable source of income.
Some dividend-paying companies also have the potential for stock price appreciation.
This combination of income and potential capital gains can make dividend stocks an attractive option for long-term investors.
Finally, investors have the option to reinvest their dividends by purchasing additional shares of the same stock. This can lead to compound growth over time, as the investor's holdings increase, resulting in larger dividend payments.
It's important to note that while dividend stocks offer certain advantages, they also come with risks.
The stock market can be unpredictable, and there are no guarantees regarding future dividend payments or stock price movements.
Investors should carefully research and consider their investment goals, risk tolerance, and the financial health of the best monthly dividend stocks right now before parting with any money.
How to Choose High Dividend Stocks Now
Choosing good dividend stocks to buy now requires careful consideration and a strategic approach.
Here are some tips to help make a more informed decision:
Step 1. Research Your Options
When looking for the best dividend stocks right now, examine the historical performance of a company's dividend payments.
Consistency in dividend payouts is often a positive indicator of financial stability. Look for companies with a track record of maintaining or increasing dividends over several years.
You should also compare dividend yields and payout ratios of companies within the same industry.
This contextual analysis helps assess a company's performance relative to its peers and provides insights into industry standards.
The payout ratio is also a crucial metric, representing the proportion of earnings a company distributes as dividends.
A lower payout ratio indicates that a company retains more earnings for potential growth or to weather economic downturns.
However, excessively low ratios may suggest a lack of commitment to returning value to shareholders.
Striking a balance is key.
Step 2. Pick Your Limits
As with any investment, there are risks involved.
Diversification across different sectors and industries helps manage risk. Avoid putting all your investment funds into a single stock.
While high dividend stocks to buy now can be attractive, spreading investments can protect your portfolio from the impact of poor performance in a specific sector.
It is also crucial to invest only what you can afford to lose.
While dividend stocks are often considered more stable, market fluctuations can impact stock prices.
Establish clear financial limits and avoid overextending your investments beyond your risk tolerance.
Step 3. Understand the Investment Type
Dividend stocks are generally considered a long-term investment.
Investors seeking a regular income stream and potential capital appreciation over time may find them suitable.
It's important to have a clear understanding of your investment goals and time horizon before committing to dividend stocks.
Despite the best dividend paying stocks to buy now being associated with stability, they are not entirely risk-free.
Market conditions, economic factors, and industry-specific challenges can impact stock prices. Investors should assess their risk tolerance and align their investment strategy accordingly.
If your goal is to maximize long-term returns, consider reinvesting dividends.
Many companies offer dividend reinvestment plans (DRIPs), allowing investors to use their dividends to purchase additional shares.
This can lead to compound growth over time.
In summary, thorough research, careful consideration of financial metrics, prudent diversification, and a clear understanding of your investment goals are crucial when choosing the top dividend stocks to buy now.
While dividends can provide a reliable income stream, it's essential to approach investing with a well-informed and disciplined strategy.
Regularly reassess your portfolio to ensure it aligns with your financial objectives and market conditions.
What to Consider When Choosing Good Dividend Stocks to Buy Now
Investing in the best dividend stocks now comes with several compelling benefits, making them an attractive option for investors looking for stability and income generation.
Here are some key advantages:
Safer Investment Option
The best dividend growth stocks to buy now are often considered a safer investment option, especially in uncertain market conditions.
Companies that consistently pay dividends tend to be more established and financially sound.
The commitment to regular dividend payments can be indicative of a company's confidence in its financial health, providing investors with a sense of stability amid market fluctuations.
Provides Passive Income
Dividend stocks offer a reliable source of passive income for investors.
Unlike some growth stocks that may not provide immediate returns, dividend-paying companies distribute a portion of their profits regularly.
This predictable income stream can be particularly appealing to investors seeking consistent cash flow, such as retirees or those looking to supplement their other income sources.
Protects Against Inflation
Dividend stocks have the potential to act as a hedge against inflation.
As companies grow and generate higher profits, they may increase their dividend payouts to shareholders.
This can help investors maintain the purchasing power of their income over time, as dividend payments may rise in tandem with inflation, providing a degree of protection against the eroding effects of rising prices.
Less Prone to Market Volatility
The best high dividend stocks to buy now are generally less prone to market volatility compared to non-dividend-paying stocks.
The regular income from dividends can provide a cushion during market downturns, helping investors ride out periods of uncertainty with greater confidence.
Additionally, companies with a history of paying dividends may demonstrate more stability, attracting investors looking for a defensive strategy in volatile market conditions.
These benefits highlight the potential advantages of incorporating dividend stocks into an investment portfolio, particularly in the current economic climate.
However, it's crucial for investors to conduct thorough research, consider their individual financial goals, and stay informed about the specific companies in which they plan to invest.
Frequently Asked Questions
The most reliable dividend stock depends on individual investment goals. Established companies with consistent dividend histories, such as Coca-Cola and Procter & Gamble, some of the best dividend aristocrats to buy now, are often considered reliable.
Thorough research, financial stability, and industry performance are crucial factors in identifying reliable dividend stocks.
To earn $500 monthly in dividends, invest in high-yield dividend stocks or funds. Aim for a diversified portfolio, considering reliable dividend-paying companies.
Depending on dividend yields, you may need a substantial investment. Regularly reinvest dividends to benefit from compounding and consider consulting a financial advisor for personalized strategies.
Ten of the best stocks that pay dividends include Microsoft; Johnson & Johnson; Procter & Gamble; Coca-Cola; Main Street Capital Corp.; Gladstone Land Corp.; Realty Income Corp.; Legal & General Group; Northwest Natural Holding Co.; and Energy Transfer LP.
To earn $1,000 monthly in dividends, build a diversified portfolio of high-yield stocks, real estate investment trusts (REITs), and dividend-paying funds.
Invest a substantial amount, reinvest dividends, and choose reliable companies with strong track records. Regularly review and adjust your portfolio, considering financial goals and market conditions.
The amount needed to make $3,000 monthly from stocks depends on dividend yields.
Assuming an average yield of 4%, you might need around $900,000 invested. However, this varies based on market conditions, stock performance, and individual goals. Consult a financial advisor for personalized guidance.
To generate $4,000 monthly in dividends, considering a 4% average yield, you might need around $1 million invested in dividend-paying stocks or funds.
Individual stock performances, market conditions, and diversification impact investment outcomes. Consult a financial advisor for personalized advice based on your financial goals and risk tolerance.
Yes, dividend stocks can be worth it for investors seeking a combination of income and potential capital appreciation. They offer a steady income stream, stability, and can act as a hedge against inflation.
However, individual preferences, risk tolerance, and market conditions should be considered before investing.
Final Thoughts
Dividend stocks present an exciting investment opportunity, offering investors a stable income stream, potential for growth, and resilience during market volatility.
Whether seeking safety, passive income, or protection against inflation, dividend stocks can play a vital role in a well-balanced investment strategy.
Before making any decisions, investors need to align their choices with their financial goals, risk tolerance, and time horizon, ensuring a prudent approach to long-term wealth accumulation.
As with any investment, staying informed and adapting strategies to evolving market conditions remain paramount.
WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
