S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)

Best Dividend Stocks

Below you will find a list of the most popular dividend stocks among MarketBeat subscribers. These stocks pay dividend yields of 3% or greater and are sorted by the number of MarketBeat users following each company. The table below shows each public company's current dividend yield, payout ratio, market indicators and other important metrics investors use to evaluate dividend stocks.

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
Available with a MarketBeat All Access Subscription
MarketRank™Upgrade to All Access to use the All Ranks Filter
Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
Available with a MarketBeat All Access Subscription
Media SentimentUpgrade to All Access to use the All Sentiments Filter
Analyst consensus is the average investment recommendation among Wall Street research analysts.
Available with a MarketBeat All Access Subscription
Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyCurrent PriceMarketBeat FollowersDividend YieldAnnual PayoutPayout RatioEx-Dividend DateIndicator(s)
AT&T Inc. stock logo
Ford Motor stock logo
Ford Motor
Pfizer Inc. stock logo
AbbVie Inc. stock logo
Exxon Mobil Co. stock logo
Exxon Mobil
6,4683.72%$3.5238.51%N/AAnalyst Report
Intel Co. stock logo
6,2074.81%$1.4631.26%N/AAnalyst Report
Gilead Sciences, Inc. stock logo
Gilead Sciences
Energy Transfer LP stock logo
Energy Transfer
Bristol-Myers Squibb stock logo
Bristol-Myers Squibb
Verizon Communications Inc. stock logo
Verizon Communications
5,1436.22%$2.5651.30%10/6/2022Dividend Increase
Analyst Downgrade
Cisco Systems, Inc. stock logo
Cisco Systems
International Business Machines Co. stock logo
International Business Machines
Chevron Co. stock logo
4,6503.66%$5.6837.89%N/AAnalyst Report
JPMorgan Chase & Co. stock logo
JPMorgan Chase & Co.
4,6243.40%$4.0032.10%N/AAnalyst Report
Enterprise Products Partners L.P. stock logo
Enterprise Products Partners
Altria Group, Inc. stock logo
Altria Group
United Parcel Service, Inc. stock logo
United Parcel Service
3,8293.12%$6.0848.84%N/AAnalyst Report
3M stock logo
3,7545.06%$5.9683.24%N/AAnalyst Report
Citigroup Inc. stock logo
3,6754.14%$2.0426.09%N/AAnalyst Downgrade
Kinder Morgan, Inc. stock logo
Kinder Morgan
3,4376.20%$1.11103.74%N/AAnalyst Upgrade
Merck & Co., Inc. stock logo
Merck & Co., Inc.
Broadcom Inc. stock logo
3,3263.26%$16.4070.93%9/21/2022Earnings Report
Dividend Announcement
Analyst Report
Blackstone Inc. stock logo
Lumen Technologies, Inc. stock logo
Lumen Technologies
2,80210.32%$1.0051.55%N/APositive News
BP p.l.c. stock logo
Devon Energy Co. stock logo
Devon Energy
2,6187.38%$5.0864.47%9/9/2022Analyst Revision
Positive News
Walgreens Boots Alliance, Inc. stock logo
Walgreens Boots Alliance
Realty Income Co. stock logo
Realty Income
2,5704.38%$2.97280.19%N/AAnalyst Report
Annaly Capital Management, Inc. stock logo
Annaly Capital Management
Rithm Capital Corporation stock logo
Rithm Capital
The Goldman Sachs Group, Inc. stock logo
The Goldman Sachs Group
2,3893.01%$10.0022.61%N/AAnalyst Downgrade
Medtronic plc stock logo
2,3583.12%$2.7270.28%9/22/2022Analyst Report
Analyst Revision
Amgen Inc. stock logo
AGNC Investment Corp. stock logo
AGNC Investment
Vale S.A. stock logo
Enbridge Inc. stock logo
2,2546.51%$2.66140.00%N/AOptions Volume
Frontier Communications Corp stock logo
Frontier Communications
2,226923.08%$2.40N/AN/AGap Down
High Trading Volume
Valero Energy Co. stock logo
Valero Energy
2,0383.49%$3.9222.57%N/AAnalyst Upgrade
Duke Energy Co. stock logo
Duke Energy
The Kraft Heinz Company stock logo
Kraft Heinz
Prospect Capital Co. stock logo
Prospect Capital
Philip Morris International Inc. stock logo
Philip Morris International
Dow Inc. stock logo
Royal Dutch Shell plc stock logo
Royal Dutch Shell
Morgan Stanley stock logo
Morgan Stanley
1,9463.54%$3.1041.89%N/AAnalyst Downgrade
Petróleo Brasileiro S.A. - Petrobras stock logo
Petróleo Brasileiro S.A. - Petrobras
Comcast Co. stock logo
1,9043.15%$1.0835.29%10/4/2022Options Volume
Innovative Industrial Properties, Inc. stock logo
Innovative Industrial Properties
Macy's, Inc. stock logo
1,8403.64%$0.6312.19%9/14/2022Analyst Revision
Rio Tinto Group stock logo
Rio Tinto Group
Best Dividend Stocks

Many investors know the importance of having a base of dividend stocks. These stocks provide investors with a regular source of passive income. And long-term investors who don’t need the income from dividends immediately can reinvest their dividends. Not only does this make dividend stocks a proven way for investors to build wealth. It also provides a form of inflation protection.

In this article, we’ll provide tips for how investors can evaluate dividend stocks so they can choose the best dividend stocks for their investing goals.

How to Understand Three Common Dividend Terms

To understand how to select the top dividend stocks, you’ll need to be familiar with some commonly used terms. If you’re new to dividend investing, here’s a brief explanation of what those terms mean.

Dividend Yield – This is a ratio of the stock’s annual dividend divided by the current stock price. So a stock that pays out $4.00 annually and has a stock price of $100 has a dividend yield of 4%. However, stock prices move up and down on a daily basis. This means that the dividend yield may change frequently making dividend yield alone an imperfect measure for evaluating the quality of a dividend stock.

Annual Payout – This is the amount of a company’s earnings that they will pay out as a dividend. This is listed on a per share basis for the year. So if a company has an annual payout of $2.00 and pays a quarterly dividend, shareholders will receive 50 cents per share every quarter. For investors who are relying on dividend payments as a way to generate income, knowing the quarterly payout is a critical factor in determining what dividend stocks to buy.  

Payout Ratio – This tells investors how much of a company’s earnings goes towards the dividend. A higher number means that a company is applying more of its earnings towards its dividend. Payout ratios are also an imperfect measurement because while a higher number is generally better, the more of a company’s earnings that go towards a dividend is less money that can go towards growth.

How to Pick the Best Dividend Stocks

To properly evaluate individual stocks, investors need to take a look at the company’s financials to make sure it is financially sound. This is because investors want certainty that a company can maintain and perhaps even grow its dividend even if its overall financial conditions weaken.

The good news is that you don’t have to have a finance background to do the research you need to evaluate a dividend stock. Here are some quick things to look for.

  • Steady Growth – A growing company shows consistent growth in both earnings per share (EPS) and revenue. This is about consistency and having realistic expectations about past performance. Even the best companies will have a bad quarter. However, many financially weak companies will pull out an occasional good quarter. What you want to see is a consistent pattern of earnings growth and revenue on both a quarterly (sequential) and a year-over-year (YOY) basis.

However, you should also look for sustainable growth. Companies that are paying dividends are generally in mature industries. That means, compared to growth stocks, these stocks tend to have a lower percentage growth in revenue and earnings. This may make their share price less attractive when the economy is going well. But, these stocks will tend to outperform when the economy is slowing down.

  • Exceptional Free Cash Flow - Along with growth in revenue and earnings, investors will want to see companies that have a healthy cash flow. Investors should look at a company’s free cash flow (FCF) as a good metric to determine the overall health of a company’s cash position.
  • Little or No Debt - Just like in your personal finances, too much debt is bad for business. Or in this case, it can be bad for a company’s dividend. This is because when a company has too much debt, they will tend to allocate earnings towards paying off the debt and away from its dividend. For most companies, it’s easy to find a number called its debt-to-equity ratio. Ideally, investors should look for a ratio that’s below 2.00.

How to Avoid Making False Comparisons with Dividend Stocks

When comparing dividend stocks, investors need to avoid making false comparisons. Not all dividend stocks are the same. That’s one problem with ratios and percentages. They can create a false comparison between two companies.

For example, a real estate investment trust (REIT) is required to pay out up to 90% of its earnings as a dividend. As a result, these stocks have some of the highest dividend yields available. You’ll want to make sure you compare companies that are in similar sectors (financials, consumer durables, healthcare, etc.).

This brings me to another point. At any given time, one sector may be performing better than others. However, even with an underperforming sector investors may be able to find a quality dividend stock.

MarketBeat provides a Dividend Screener tool as a comparison service for investors. For example, investors can screen for stocks in a particular sector or industry. They can also screen for specific fundamental metrics like dividend yield or payout ratio.

Some Final Thoughts on Choosing the Best Dividend Stocks

The list of companies that pay dividends is long. In fact, over 400 of companies in the S&P 500 Index pay dividends. To help focus your thinking, you can choose to look at the Dividend Aristocrats. This is a select group of companies that have increased their dividend for at least 25 consecutive years. As of July 1, 2022, there are only 63 stocks on this list which can make it easier to narrow down a search.

One final point about dividend stocks is that to truly get the most from them requires having a long-term focus. Buying and holding these stocks over time and reinvesting the dividends gives investors the benefits of compounding. So make sure that the stocks you own are companies that are in defensive sectors that can deliver solid results no matter what is happening in the broader economy.  


More Dividend Resources from MarketBeat

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.