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10 best dividend stocks of 2024

These dividend stocks have strong dividend yields and have Buy or better analyst recommendations.

Dividends increase the rate of compound gains, which can help a portfolio grow faster. They can also provide a dependable source of income to mitigate losses that occur from a decline in share price — especially in a bear market.

Below is a list of 10 US-based stocks ordered by dividend yield. This list comprises stocks listed on the S&P 500, with an average analyst recommendation of Buy or better and a dividend yield of 4% or higher to combat inflation.

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10 best dividend stocks of 2024

Stock and tickerDividend yieldLink to invest
Verizon Communications (VZ)6.80%

Buy now

Boston Properties (BXP)6.62%

AT&T (T)6.43%

Buy now

Healthpeak Properties (DOC)6.29%

Pfizer (PFE)5.97%

Buy now

Realty Income (O)5.95%

Buy now

VICI Properties (VICI)5.92%

Buy now

Keycorp (KEY)5.68%

Truist Financial (TFC)5.50%

Buy now

Simon Property Group (SPG)5.34%

Buy now

*Source: Finviz. Stock and dividend data accurate as of May 28, 2024.

How to buy the best dividend stocks in 5 easy steps

  1. Sign up with online stock trading platform. Choose from our Top Picks or jump straight to the best stock trading apps of 2024. Then, provide your personal information and sign up.
  2. Set up a funding method to pay for the transaction. Deposit funds into your account by linking your banking information.
  3. Choose the stocks you want to buy. Search for the stock by name or ticker symbol.
  4. Place your order. Buy the stock. It’s that simple.

What to look for when choosing dividend stocks

It’s important to consider how each stock will fit into your portfolio and investment goals. Investors should select high-quality companies and weigh the following factors when choosing the best dividend stocks:

  • Dividend yield. Dividend yield is a financial ratio that measures a stock’s annual dividend payment expressed as a percentage of the stock’s current price. For example, a stock that trades at $75 and pays a dividend of $3 each year has a dividend yield of 4%.
  • The dividend yield moves inversely to the stock price. Generally speaking, if the dividend rate doesn’t change, the yield rises when the stock price falls and falls when the stock price rises. A high yield typically means more income per dollar invested. But a rise in yield may not be a good thing if the stock price is plummeting.
  • Dividend payout ratio. This tells you how much of a company’s income it’s paying out in dividends. A low payout ratio could mean a company is reinvesting most of its earnings into expanding operations, while high dividend payout ratios could represent a steady income stream. Too high a payout ratio could be unsustainable, though.
  • Dividend growth rate. Investors should look at how quickly the company has raised its dividend in the past. While it’s no guarantee, a history of strong dividend growth could mean future dividend growth is likely.

Pros and cons of investing in dividend stocks

Pros

  • Finding the best dividend stocks can provide regular income
  • Some stocks have been paying dividends for decades
  • Dividend-paying stocks tend to be less volatile than non-dividend-paying stocks.

Cons

  • High dividend yields can be misleading
  • Dividend payments are never guaranteed
  • Some dividend stocks see little share price growth

Frequently asked questions

Are dividend paying stocks worth it?

Yes, finding the best dividend stocks can provide regular income and some stocks have been paying dividends for decades. But remember that dividend payments are never guaranteed and some dividend stocks see little share price growth.

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Editor, Investments

Matt Miczulski is an investments editor at Finder. With over 450 bylines, Matt dissects and reviews brokers and investing platforms to expose perks and pain points, explores investment products and concepts and covers market news, making investing more accessible and helping readers to make informed financial decisions. Before joining Finder in 2021, Matt covered everything from finance news and banking to debt and travel for FinanceBuzz. His expertise and analysis on investing and other financial topics has been featured on CBS, MSN, Best Company and Consolidated Credit, among others. Matt holds a BA in history from William Paterson University. See full bio

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Matt has written 185 Finder guides across topics including:
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