The 5 Best Dividend Stocks Right Now

The best dividend stocks are ones that keep paying their dividends over time. When investors buy a stock for the dividend, they count on that dividend to get paid each quarter. It is essential for the investor since the dividend is a source of passive income.

Furthermore, buying dividend stocks can be a necessary part of a retirement plan. Suppose you combine passive income from dividends, social security payments, and retirement plan distributions, then you may have a diversified income stream to fund your retirement.

Investing in dividend stocks is often viewed as more conservative than investing in growth stocks or riskier alternative investments. But the best dividend stock from ten years ago or even a year ago may not be the best one today.

5 Best Dividend Stocks Right Now Verizon

Consumers and businesses will continue to need a reliable cell phone network. In addition, higher broadband speed is always a requirement. Verizon can provide both. But since the markets are mature, Verizon will probably be a slow-growing company. However, slow-and-steady is suitable for the dividend.

Microsoft

Microsoft is the second-largest company by market capitalization at over $2.58 trillion. This dollar value is more than the Gross Domestic Product (GDP) of many countries. Microsoft’s stock has been on a tear since the current CEO, Satya Nadella, took over.

Realty Income Corporation

Realty Income is well-known for its monthly dividend payments. The REIT has paid a dividend since its founding in 1969. That totals 617 consecutive monthly dividends.

Coca-Cola

Coca-Cola’s stock price is flat year-to-date. The quarterly dividend rate is $0.42 per share. The annual dividend rate is $1.68 per share. The dividend yield is good at about 3.1%. However, Coca-Cola’s dividend safety is lagging, with a payout ratio of approximately 73%. This value is high, but Coca-Cola has consistent revenue and earnings even during recessions.

Consolidated Edison

For our last stock on this list of five stocks, we include a utility for diversification. Consolidated Edison (ED) is one of the oldest regulated utilities. The company is also a well-known dividend stock that has paid a dividend since 1885.

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