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.

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.

What Are Dividend Stocks? In this period of tech stock investing and bitcoin, some investors may ask what a dividend stock is? Companies that pay a part of their earnings to stockholders are known as dividend stocks.

There are a few critical and fundamental divided-related finance words to know. These are dividend rate, dividend yield, and payout ratio. Of course, there are other terms to understand, but investors who are just beginning can get started with these three words.

5 Best Dividend Stocks Right Now

Verizon Verizon (VZ) is number one on this list for two reasons: an excellent dividend yield combined with good dividend safety. First, most investors know about Verizon. The company is a cell phone giant with one of the largest US networks. Verizon operates in a mature market with only two other large competitors, controlling 98%+ of the US wireless market.

Microsoft In our opinion, no list of dividend stocks is complete without Microsoft (MSFT). Almost every investor knows about Microsoft. The company’s signature products and services include Windows, MS Office, Xbox, LinkedIn, Bing, Outlook, Azure, and more. Almost every adult directly or indirectly uses one or more of these products.

Realty Income Corporation Realty Income Corporation (O) is the only real estate investment trust (REIT) on this list. The trust owns more than 6,500 commercial properties. Additionally, Realty Income’s retail properties are not part of larger retail developments, like malls or town centers, but standalone properties. This fact means that many different tenants can utilize the properties, including government services, healthcare services, and entertainment.

Coca-Cola Coca-Cola (KO) is one of the most well-known dividend stocks. Additionally, the company owns some of the most famous brands globally, operating in more than 200 countries. Coca-Cola owns over 20 brands with $1 billion in sales.

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. Consolidated Edison provides electricity, gas, and steam in New York City, southern New York, and northern New Jersey. The utility has approximately 3.5 million electricity customers and 1.1 million gas customers.

Disclaimer: Dividend Power is not a licensed or registered investment adviser or broker/dealer. He is not providing you with individual investment advice. Please consult with a licensed investment professional before you invest your money.

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