What are dividend stocks?

Dividend stocks are shares of companies that regularly distribute a portion of their profits to shareholders, providing passive income.

Why are dividend stocks attractive in volatile times?

Dividend stocks provide stability and steady income even when stock prices are volatile, making them a relatively safe haven.

What is the difference between dividend yield and dividend growth?

Dividend yield is the percentage of dividends relative to the stock price, while dividend growth refers to the increase in dividend value over time.

How do I choose the best dividend stocks?

Look for companies with a long history of paying and increasing dividends, strong earnings growth, and a sustainable payout ratio.

10 Years, Zero Regrets: The Dividend Stocks I Keep Buying

Dividend stocks are a pillar for long-term investing, offering passive income and stability. We highlight three reliable stocks from different sectors that have consistently paid dividends for a decade.

Amid current market volatility and geopolitical unrest, investors are turning to dividend stocks as a safe haven. However, not all dividend stocks are equal; smart selection requires focusing on companies that have consistently raised dividends for a decade. According to a report from 24/7 Wall St., here are three stocks that have proven their worth over 10 years.

Details

AbbVie (ABBV)

Biopharmaceutical company AbbVie, listed on the NYSE under ticker ABBV, offers a dividend yield of 3.6%. Despite the expiration of the patent for Humira, which accounted for 55% of its revenue in 2022, the company maintained and increased its dividends annually. New drugs like Rinvoq and Skyrizi have helped offset the decline in Humira sales.

Coca-Cola (KO)

Coca-Cola (ticker KO) is a beverage giant with a dividend yield of 3.1%. The company owns a portfolio of over 200 brands and has paid dividends for over 60 consecutive years. Geographic diversification and brand strength helped it navigate inflation challenges.

PepsiCo (PEP)

PepsiCo (ticker PEP) offers a dividend yield of 2.9% and is diversified between beverages and snacks (e.g., Frito-Lay, Quaker). It has increased dividends for 50 consecutive years, making it a Dividend Aristocrat.

Context

These stocks outperform others due to their ability to increase dividends annually, providing a hedge against inflation. In contrast, some stocks may offer high yields but are unsustainable.

What This Means for Investors

For income-seeking investors, these stocks remain attractive options. However, sector-specific risks such as patent expirations in pharmaceuticals or changing consumer habits in beverages should be considered.