Best Dividend Stocks To Buy

Home » Investing » Best dividend stocks to buy

Building an investment portfolio of stocks that pay dividends is a well-known investment strategy and is often considered a more conservative investment option than focusing on capital gains. If done right, dividend stocks can be a good way to generate passive income from dividend payments and grow your investment portfolio over time.

That’s why we’ll look at some of the best dividend stocks to buy and hold. However, dividends are not the only thing to look at when choosing the right stocks to buy for the long term. It would be best if you also considered valuation and company fundamentals to ensure you are reducing the risk of losing your initial investment value.

Consider your main goal and find the most suitable dividend stock list below:

3 Best dividend stocks to buy and hold

Long-term stock investment is often a wiser and safer choice for your money. And buying stocks that are paying dividends is even better because you can get a regular passive income from your investments.

However, recent years have taught us that markets can shift without warning and that previous success is no guarantee of future results. With this in mind, we chose the top 3 dividend stocks for long-term investment. All of the companies have shown steady growth in the long term.

Dividend stocks to buy and hold

3. McDonald’s Corporation (MCD)

McDonald’s Corporation, known as McDonald’s, is an American fast food company. The company has over 36,000 locations worldwide and serves 68 million customers daily. Although McDonald’s is best known for its hamburgers, cheeseburgers and french fries, they also serve breakfast items, soft drinks, milkshakes, wraps and desserts.

  • Dividend yield: ~2.20%

2. Procter & Gamble Co (PG)

Procter & Gamble Co. is an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, United States of America. It specializes in a wide range of personal care and household products, primarily in beauty, personal hygiene, and home care. The company has been in business for over 180 years.

P&G operates in more than 70 countries and sells its products in more than 180 countries worldwide.

  • Dividend yield: ~2.50%

1. Coca-Cola Co (KO)

Coca-Cola is a carbonated soft drink that The Coca-Cola Company produces. Originally intended as a patent medicine, John Pemberton invented it in the late 19th century. It was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coca-Cola to its dominant market position. The drink’s name refers to two of its original ingredients: coca leaves and kola nuts.

The Coca-Cola Company produces concentrate, which is then sold to authorized Coca-Cola bottlers throughout the world who hold an exclusive territory. The bottlers then sell, distribute and merchandise the resulting finished product to retail stores and vending machines. The Coca-Cola Company also sells concentrate for soda fountains of major restaurants and food service distributors.

  • Dividend yield: ~2.80%

5 Best monthly dividend stocks

Most companies pay dividends quarterly. However, some companies pay more often – monthly. When looking for the best monthly dividend stocks, we looked for companies that are not highly overvalued, had a positive stock price increase in the last 3 years, the company paid dividends monthly consistently and had an attractive dividend yield.

Best monthly dividend stocks.

Here are our top 5 picks for monthly dividend stocks:

5. Pembina Pipeline Corp (PBA)

Pembina is a Calgary-based energy infrastructure company that operates in Canada and the US. The company has been increasing its dividends yearly.

  • Dividend yield: ~5.50%

4. Main Street Capital Corp (MAIN)

Main Street Capital is a Houston-based company that provides debt and equity financing to lower middle-market companies.

  • Dividend yield: ~6.15%

3. Gladstone Investment Corp (GAIN)

Gladstone Investment is a publicly traded private equity real estate investment firm based in McLean, VA.

  • Dividend yield: ~6.35%

2. Gladstone Capital Corp (GLAD)

Gladstone Capital is a publicly traded private equity real estate investment firm based in McLean, VA.

  • Dividend yield: ~7.70%

1. Prospect Capital Corp (PSEC)

Prospect Capital is a publicly traded private equity real estate investment firm based in New York, NY.

  • Dividend yield: ~9.20%

Highest Dividend-Paying Stocks

For some investors, the goal is to earn the highest dividend yield possible. However, it’s important to carefully evaluate the company because what’s the point of receiving a dividend payment if the company is losing its value and can’t regularly pay dividends to its investors? It’s often not the most profitable approach due to other factors involved.

We’ll leave extreme cases out and look at companies that have paid dividends consistently, have increased their dividend payments over the last 5 years and increased in value over the previous 3 years.

Highest dividend-paying stocks

10. Artisan Partners Asset Management Inc (APAM)

Artisan Partners Asset Management Inc (APAM) is a global investment management firm based in Milwaukee, WI. The company offers a wide range of investment solutions and has a history of strong performance. Artisan Partners Asset Management clients include pension funds, corporations, individuals and advisors.

  • Dividend yield: ~7.30%

9. ICL Group Ltd (ICL)

ICL Group is a multinational corporation specialising in developing, producing, and marketing fertilizers, metals, and other chemical products. The company focuses on three main directions: agriculture, food production, and engineered materials. ICL Group was founded by Mordechai Eliyahu in 1965 and is headquartered in Petach Tikva-Yafo, Israel.

  • Dividend yield: ~7.87%

8. Pioneer Natural Resources Co (PXD)

Pioneer Natural Resources is an oil and gas exploration and production company with operations in the United States and South Africa. The company is focused on finding and developing oil and gas reserves in unconventional resource plays.

  • Dividend yield: ~8.01%

7. Altria Group Inc (MO)

Altria Group Inc (MO) is an American tobacco company which produces cigarettes, cigars, and other tobacco products. Altria is headquartered in Richmond, Virginia, and is the parent company of Philip Morris USA, John Middleton Company, U.S. Smokeless Tobacco Company, Ste. Michelle Wine Estates and Philip Morris Capital Corporation.

  • Dividend yield: ~8.14%

6. Ares Capital Corp (ARCC)

Ares Capital Corp is a publicly traded business development company that provides debt and equity financing to middle-market companies.

  • Dividend yield: ~8.50%

5. Camping World Holdings Inc (CWH)

Camping World Holdings, Inc. is an American camping and outdoor recreation retailer founded in 1966. The company operates through two segments: Retail and Consumer Services. The Retail segment consists of the Company’s retail stores that offer a range of products and services, including new and used RVs, camping supplies, hunting and fishing licenses, repairs, and other services such as financing and insurance. The Consumer Services segment includes the operations of the Company’s wholly-owned subsidiary Gander Mountain Company (Gander Mountain), a speciality retailer of hunting, fishing, camping and related outdoor merchandise.

  • Dividend yield: ~8.51%

4. Starwood Property Trust Inc (STWD)

Starwood Property Trust Inc is a real estate investment trust that acquires, finances, develops and manages commercial mortgage-backed securities and other commercial real estate debt investments.

  • Dividend yield: ~9.03%

3. Hercules Capital Inc (HTGC)

Hercules Capital Inc is a business development company that provides debt and equity financing to middle-market companies. The company offers a wide range of investment solutions and has a history of strong performance.

  • Dividend yield: ~9.49%

2. Arbor Realty Trust Inc (ABR)

Arbor Realty Trust is a real estate investment trust that acquires, finances, develops and manages commercial mortgage-backed securities and other commercial real estate debt investments. The company offers a wide range of investment solutions.

  • Dividend yield: ~10.50%

1. Gerdau SA (GGB)

Gerdau SA is a Brazilian steel company that produces and sells steel products worldwide. The company operates in four segments: Brazil, North America, South America, and Europe. Gerdau was founded in 1901 and is headquartered in Sao Paulo, Brazil.

  • Dividend yield: ~12.31%

Where to buy dividend stocks?

Many online platforms and brokerage firms offer access to dividend stocks. Some of the most popular options you can find are below. And if you’re starting to invest in the stock market, we suggest you go through our guide on how to invest in stocks for beginners.

Best for

European investors & Practice

Min. Deposit

No minimum

Demo account

Available here

*Investing involves the risk of loss.

Best for

International investors

Min. Deposit

From $10 (Depending on location)

Demo account

Available here

*eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Best for

European investors

Min. Deposit

No minimum

Demo account

Not available

*Investing involves the risk of loss.

Martin Kaiser

Editor-in-Chief on Globe Funder with more than ten years of experience in personal finance, stock trading and cryptocurrency fields. Martin has a master's degree in Business Administration and a strong passion for online investing.

Leave a Comment