The best US dividend stocks 2023-WWNEED.COM
An investment in US dividend stocks is an investment in stocks that pay regular dividends to their shareholders, usually in the form of cash payments. Dividend shares can be useful sources of income, and they can also be excellent ways to increase your wealth in the long term.
There are many investors who are still not sure how to start their search, so here is a list of US dividend stocks that you should consider and some of the most important things to look for before investing.
The best US dividend stocks for investment 2023
The Dividend Aristocrats list, which is a group of S&P 500 companies that have paid and raised their underlying dividend for at least 25 consecutive years, is a great place to find the highest US dividend stocks to invest in.
Here are the top US dividend stocks you should consider buying now:
First on the list of the most important US dividend stocks is Lowe’s. The company has raised its dividend every year since going public in 1961 and has raised payouts by a whopping 471% over the past decade alone. The average home in the United States has an average lifespan of 37, which means the next generation of DIYers will be spending a lot of money at Lowe’s, a home repair and modification company.
2- Walgreens Boots Alliance (NYSE :WBA)
Walgreens, one of the largest retail pharmacy operators in the world, is undergoing a massive transformation. This company is already cutting costs, increasing digital sales, and perhaps most importantly, adding full-service healthcare clinics in hundreds of retail locations, which will help turn it into a more integrated, and therefore more profitable, healthcare company.
3- Realty Income (NYSE :O)
Third in the list of the most important US dividend stocks, Realty Income. If you are looking for a simple way to invest in quality real estate for income and growth, this could be the perfect stock for you. The company owns a wide range of properties that earn strong cash flow from tenants on long term leases. Realty Income has 27 consecutive years of dividend increases, along with 53 consecutive years of paying investors every month.
4- Johnson & Johnson (NYSE :JNJ)
This company has a group of premium brands that manufacture products that people need, specifically healthcare items. In addition to Band-Aid, Neutrogena, Tylenol, Zyrtec, Benadryl, and Johnson, Johnson & Johnson has huge and steadily profitable pharmaceutical and medical device operations, and the combination of them has increased US distributions for 60 years in a row, proving to be a huge profit driver. .
5- Target (NYSE :TGT)
Fifth in the article the most important US dividend stock, Target, which has consistently proven that it does not have to compete on price to win, but is, indisputably, more profitable than its peers. At the same time, its focus on increasing its e-commerce business and expanding in-store offerings has increased sales and profits at a healthy rate.
6- Brookfield Infrastructure Corp. (NYSE :BIPC)
Sometimes the best stocks are the ones that are hidden in plain sight. Such is the case with Brookfield Infrastructure, which owns water, energy, utilities, transportation and communications infrastructure around the world. These assets generate steady, recession- and inflation-resistant cash flows, and Brookfield returns a large portion of them to shareholders. With a dividend yield close to 3% at recent prices and a target to increase yield from 5% to 9% annually, Brookfield Infrastructure is a hidden dividend gem.
7- Microsoft (NASDAQ :MSFT)
As one of the largest companies in the world, Microsoft has steadily increased its sales, and its focus on recurring or subscription-based revenue streams is a particularly attractive feature for dividend investors. The company has a strong balance sheet with more cash than debt and a very low payout ratio which leaves plenty of room for an increase in US dividends. Given the 12-year streak of dividend increases, we wouldn’t be surprised if Microsoft joins the Dividend Aristocrats club soon.
8- American Express (NYSE :AXP)
Although AmEx is not a Dividend Aristocrat, it has a decades-long track record of increasing or maintaining its bottom line in every economic environment. This is a credit to its high-quality lending standards and its focus on higher-income consumers who are less likely to default on their debts during weak economic periods, making it a safe investment for long-term investors and a reliable source of US dividend stocks.
9- Clearway Energy (NYSE:CWEN.A)
Finally in the list of the most important shares of US distributions, Clearway Energy, which owns and manages wind and solar energy assets, and invests in various utilities so that it sells energy on long-term contracts to various utility companies. If you are looking for a less volatile and safer way to take advantage of renewable energy sources, Clearway Energy is an excellent choice.
Top US dividend stocks that you can invest in
Whether to generate income that you will use today, or to obtain capital that you can reinvest to increase your wealth, here are some suggestions for the highest US dividend stocks that you can invest in:
First, do not focus on the size of the US dividends, but rather on the dividend yield. The US dividend yield, or the percentage of the share price you bought it for, is more important than the dollar amount of dividends per share.
Next, don’t make owning high-yielding stocks your #1 priority.Focus first on the quality of the business and the company’s ability to maintain and increase yield. Only then can you know if the high dividend yield is sustainable.
Things to consider when investing in US dividend stocks
Once you have a solid understanding of how dividend stocks work, a few basic concepts can help you find excellent dividend stocks for your portfolio. Here are some things you should take into consideration:
Payout ratio: The payout ratio is the amount of money a company pays per share divided by its earnings per share. In other words, this tells you the percentage of dividends that a stock pays to shareholders. A reasonably low payout ratio, such as 60% or less, is a good sign that the dividend is sustainable.
History of Increases: It’s a very good sign when a company is increasing its dividend year after year, especially when it can continue to do so during recessions and other tough economic time like the COVID-19 pandemic.
Steady revenue and earnings growth: When looking for the best dividend stocks for the long term, prioritize stability. Irregular revenues such as an increase one year, a decrease the next can be signs of a problem.
Enduring Competitive Advantage: Enduring competitive advantage can come in several forms, including high barriers to entry, high customer switching costs, or a strong brand name.
High Yield: Obviously, a high yield is better than a lower yield, but only if the other four criteria are met. A high return should be as strong as the business it supports, so compare US dividend yields after making sure the company is sound and the return is stable.
Dividend stocks are long-term investments
Even the most solid US dividend stocks can fluctuate wildly over short periods, as there are plenty of market forces that can move them up or down over the course of days or weeks. But don’t worry too much about daily price movements, instead focus on finding companies with stable income streams and strong earnings track records to invest in for the long term.
Disclaimer: The content of this article is for informational purposes only. The information provided should absolutely not be considered as investment advice or a recommendation. No warranty is made, express or implied, as to the accuracy of the information or data contained herein. Users of this article agree that Money Secrets does not accept responsibility for any of their investment decisions. Not every investment or trading strategy is suitable for anyone. See the risk warning statement.