The 3 Best Dividend Stocks to Buy for Retirement

Moreover, their generous dividends to income investors also contribute to the popularity of these defensive securities. The company’s dividend history stretches back to 1920, and the payout has swelled for 60 consecutive years. The most recent hike, announced in February 2022, lifted the quarterly dividend by 4.8% to 44 cents per share. JNJ’s diversification across three major business segments adds fortitude to this defensive dividend stock, and that helps income investors sleep better at night. The healthcare giant has increased its payout for three decades and counting. The most recent hike came in April 2022 when JNJ increased the quarterly dividend by 6.6% to $1.13 per share.

  • Payout ratios are also an imperfect measurement because while a higher number is generally better, the more of a company’s earnings that go towards a dividend is less money that can go towards growth.
  • The iShares International Developed Property ETF tracks the S&P Developed ex-US Property Index.
  • The list isn’t particularly diversified, so it doesn’t make a complete portfolio.
  • STAG Industrial Inc. is an REIT focused on acquiring and operating industrial properties in the United States.
  • Revenue growth has been lackluster in recent years, and earnings growth has followed suit.

Main Street has a conservative monthly dividend model in that it pays a relatively modest monthly dividend, but then uses any excess earnings to issue special dividends twice per year. This keeps Main Street out of trouble and prevents it from suffering the embarrassment of a dividend cut in years where earnings might be temporarily depressed. Broadmark manages a portfolio of deed of trust loans for the purpose of funding development or investment in real estate. The telecommunications sector is one of the most diversified industries, operating in satellite communications, broadband, and cables. The global telecommunications industry has evolved over the years and brought forward several new tools to facilitate users.

The company’s network of bakeries serves as another advantage since supermarkets, mass merchandisers, restaurants, and other customers desire the freshest baked goods. The iShares International Developed Property ETF tracks the S&P Developed ex-US Property Index. This index casts a very wide net, covering the entire investable universe of public property investment firms in developed countries outside the U.S. Receive daily, weekly, and monthly updates on only the things that matter to you and the world of money. Titan will ask you about your goals, financial situation, and risk tolerance to produce a recommendation that’s customized to you. As of May 17, 2022, BTT’s portfolio was spread across 639 holdings with its largest holding accounting for about 3.6%.

This resilient performance partly reflects Chevron’s scale, capital efficiency, and vast resource base. Management believes the firm can cover its capital spending program and dividend with an oil price as low as $50 per barrel, providing a healthy margin of safety. The automotive aftermarket business does well even in challenging times because people still have a need to repair their aging vehicles as they break down over time. Franchisees generate the bulk of McDonald’s profits by paying the company high-margin rent and royalties based upon a percent of sales.

Stag Industrial

At any given time, one sector may be performing better than others. However, even with an underperforming sector investors may be able to find trade360 broker a quality dividend stock. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The company last raised its payout in April 2022 with a 4.3% bump to 49 cents per share per quarter. In August 2022, Illinois Tool Works raised its quarterly dividend by 7% to $1.31 cents a share, bringing its streak of annual increases to 51 years. However, the company notes that excluding a period of government controls in 1971, that streak would stretch to 58 years. Either way, ITW’s dividend sports a 10-year compound annual growth rate of 13%. It first paid a dividend in 1924 and its dividend growth streak is long-lived too, at 50 years and counting.

The partnership has survived past recessions with its dividend intact. And oil and gas prices may hold at higher levels during the next downturn given the current inflationary environment. Regulated utilities are among the most dependable businesses investors can own during a recession. The recession-resistant stocks below are ordered by how many consecutive years they have maintained or increased their dividends, starting with the shortest streaks.

best dividend stocks 2022

For the 12 months ended March 31, 2022, CAT had free cash flow after debt payments of $4.8 billion, and that was after disbursing $2.4 billion in dividends. Dividends are only as healthy as a company’s underlying business. Look for dividend stocks that have delivered stable and growing earnings and revenue. Dividend investing provides investors with steady cash flow over the long term. And when you reinvest dividend income, the magic of compounding can turbocharge your returns. Over the last century, dividend payments account for about 40% of the total return of the S&P 500.

With a strong balance sheet, A credit rating, and portfolio of recession-resistant products, Kimberly-Clark should remain a durable income investment in all manner of environments. This applies to the quality and creditworthiness of the stocks owned by the ETF. If the fund owns riskier companies with lower credit ratings, then it’s more likely that the value of the fund will decline, taking your total return with it. Just because a company pays a dividend now doesn’t mean it will continue in the future. Even if it keeps its dividend, there are no guarantee payouts will rise over time.

Dividend Aristocrats List

Its portfolio includes residential and commercial mortgage loans, mortgage-backed securities and other real estate assets. In that respect, dividend investing is no different than any other kind of equity investing. The goal is to target companies that are in good shape, that provide value-adding products or services and that are run with long-term growth and stability in mind. Another good thing about this investment class is that the adage of getting what you pay for doesn’t always apply — many of the best dividend stocks also happen to be cheap dividend stocks.

best dividend stocks 2022

High inflation has caused most retailers to increase their prices, which has resulted in consumers decreasing their consumption of many products. But as I recently wrote in my coverage of Hershey’s second-quarter results, “inflation is no match for consumers’ sweet tooth,” at least when it comes to the company’s products. Founded in 1823, it provides electric, gas or steam services to roughly 3.5 million customers in New York City and Westchester County.

When you own a dividend ETF, fund managers ensure the holdings are always ones that pay out good dividends. Moreover, management expects to increase the dividend about 10% a year through at least 2024. Hershey’s most recent quarterly dividend marks its 371st consecutive quarterly dividend on its common quantitative trading systems stock, which means that it’s paid a quarterly dividend every quarter since going public in 1978. The stock’s dividend yield is about 1.8% as of the market close on Aug. 24. And few have been steadier than FRT, which owns retail and mixed-use real estate in several major metropolitan areas.

NextEra Energy, which owns Florida Power & Light Company, is the largest regulated electric utility in the United States. It also has the distinction of being the world’s largest generator of renewable energy from the wind and sun, as well as a global leader in battery storage. Indeed, the confectionary and salty-snack food maker continues to turn in robust financial results. Its stable of longtime popular brands — including its namesake brand, Reese’s, Kit Kat, and Twizzlers — give it an enviable pricing power. He’s also written for Esquire magazine’s Dubious Achievements Awards. However, it also has deep roots in Mexico, where it operates under the AutoTodo brand, as well as Canada, where it operates as UAP.

best-yielding UK dividend stocks in 2022

Like TXN, Lockheed has weathered the tough markets of 2022 better than many other stocks. Shares of LMT are about 13% off their March 2022 all-time high but still up more than 18% year-to-date. Economic and political instability, traderprof such as we’re seeing around the globe today, is favorable for Lockheed. View our full suite of financial calendars and market data tables, all for free. Real-time analyst ratings, insider transactions, earnings data, and more.

You’re more likely to get rich by investing in growth stocks, which have the potential for rapid and dramatic appreciation, than by pursuing the highest dividends possible. Dividend aristocrats are S&P 500 companies that have raised their dividends for 25+ years. Even if the price of oil crashes like it did in 2008, investors can take some comfort in knowing that XOM shares only lost 28% during the financial crisis compared to the S&P 500’s -55% slump. That said, more consumers still look to save money during economic downturns by trading down to cheaper products. Colgate mitigates this risk by having products available at all price points and in different package sizes to meet a wide variety of consumer needs.

All three are worth considering buying now if you’re an investor with a long-term investing mindset. The company has paid a cash dividend every year since going public in 1948 – or 66 consecutive years. The last hike – a 9.8% improvement to 89.5 cents per share quarterly – came in February 2022. Although the economy ebbs and flows, demand for products such as toilet paper, toothpaste and soap tends to remain stable. That hardly makes P&G completely recession-proof, but it does make the grade as one of the best dividend stocks because it’s an equity income machine. Demand for Colagte’s products tends to remain stable in both good economic times and bad, and that drives the free cash flow need to maintain its dividend growth streak.

The 3 Best Dividend Stocks to Buy for Retirement

WMT has generated average annual free cash flow of more than $15 billion over the past seven years. Mostly recently, in July 2022, it raised the quarterly payout by 0.5% to 48 cents per share. Most recently, in May 2022, MDT lifted its quarterly payout by 7.9% to 68 cents per share. ADP expects to return more than $1.4 billion to shareholders in 2022, the CEO added. Unlike many of the best dividend stocks on this list, you won’t have a say in corporate matters with the publicly traded BF.B shares. And most of the voting-class A shares are held by the Brown family.

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Customers value product reliability and delivery convenience more than getting the absolute lowest price. This is partially because professional clients tend to pass on higher prices to their customers, helping Genuine Parts maintain stable margins. Still, Con Edison has lots of work to maintain New City’s infrastructure, which requires substantial investment being located in such a dense, congested area. That said, McDonald’s has historically supported franchisees by co-investing to improve restaurants. This has helped the firm maintain consistency between locations with fast service, convenient ordering options, hot food, and predictable quality.