These Are the 3 Smartest Dividend Stocks Today

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  • Coca-Cola is a Dividend King with 63 straight years of increases and a yield under 3%.

  • Dubbed “The Monthly Dividend Company,” Realty Income is a top dividend REIT with 661 consecutive payouts.

  • Dividend King Johnson & Johnson has a healthy balance sheet and a yield around 3%.

  • 10 stocks we like better than Coca-Cola ›

You can’t time the market, but you can bank on a good dividend. Especially when stocks are swinging in volatile times, reliable income is a rare anchor.

Right now, I like the following three dividend stocks because they’re steady, well-positioned, and proven in every economic weather pattern you can name. That’s a trifecta you can rarely go wrong with, whether you’re investing $100, $1,000, $10,000, or $50,000.

Person holding out a glass of cola.
Image source: Getty Images.

Not many brands are as well-known globally as Coca-Cola (NYSE: KO). Its flagship soda is one of the most recognized products on the planet, and the company’s portfolio stretches far beyond colas (think Dasani water, Minute Maid juice, and Topo Chico sparkling water).

Although Coca-Cola’s stock has outperformed the market through Aug. 13 (compared to the S&P 500), the appeal of its stock has long been its dividend. Indeed, Coca-Cola has raised its dividend for 63 consecutive years, making it a Dividend King. Today’s yield sits just below 3%, with a payout ratio that leaves room for steady increases. That means investors get a dependable income stream that’s not tied to market swings.

The headwinds? Currency fluctuations can bite into earnings, and global health trends could pressure sugary beverage sales over time. But Coca-Cola’s ability to adapt, whether through zero-sugar drinks or premium hydration brands, keeps it well-anchored in the “reliable” category.

When Realty Income (NYSE: O) calls itself “The Monthly Dividend Company,” it’s not bluffing. This real estate investment trust (REIT) has paid dividends for 661 consecutive months, or roughly 55 years.

That kind of track record comes from a simple but effective business model: Long-term, net lease agreements with single tenants in stable, non-discretionary industries. Think Lowes, 7-Eleven, and Chipotle, among others. Today, Realty Income owns more than 15,600 commercial properties leased to over 1,600 clients across 91 separate industries, achieving a portfolio occupancy of 98.5%.

Even when the economy cools, those tenants still pay rent, and Realty Income’s contract structure shifts maintenance and insurance costs to them. That keeps cash flow predictable, which in turn supports the monthly dividend. The yield, currently around 5.6%, ranks it as a top dividend REIT.

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