- Earn 4.5% interest on uninvested cash with Gold
- Get up to $50,000 in instant deposits with Gold
- Easy, user-friendly trading
- Unlimited bonus amounts Oct 16-27
Dividends increase the rate of compound gains, which can help a portfolio grow faster. They can also provide a dependable source of income to mitigate losses that occur from a decline in share price — especially in a bear market.
Below is a list of 10 US-based stocks ordered by dividend yield. This list comprises stocks listed on the S&P 500, with an average analyst recommendation of Buy or better and a dividend yield of 4% or higher to combat inflation.
Our top picks for platforms where you can invest in dividend stocks
- Trade options, futures, options on futures, stocks, ETFs
- $0 commission to close options
- Pro-grade platform and risk analysis tools
- Trade stocks, options, ETFs, mutual funds, alternative asset funds
- $0 commission on stocks, ETFs and options, with no options contract fees
- Complimentary access to a financial planner and automated investing
Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.
Finder is not an advisor or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.
10 best dividend stocks of 2024
Stock and ticker | Dividend yield | Link to invest |
---|---|---|
Verizon Communications (VZ) | 6.80% | |
Boston Properties (BXP) | 6.62% | |
AT&T (T) | 6.43% | |
Healthpeak Properties (DOC) | 6.29% | |
Pfizer (PFE) | 5.97% | |
Realty Income (O) | 5.95% | |
VICI Properties (VICI) | 5.92% | |
Keycorp (KEY) | 5.68% | |
Truist Financial (TFC) | 5.50% | |
Simon Property Group (SPG) | 5.34% |
*Source: Finviz. Stock and dividend data accurate as of May 28, 2024.
How to buy the best dividend stocks in 5 easy steps
- Sign up with online stock trading platform. Choose from our Top Picks or jump straight to the best stock trading apps of 2024. Then, provide your personal information and sign up.
- Set up a funding method to pay for the transaction. Deposit funds into your account by linking your banking information.
- Choose the stocks you want to buy. Search for the stock by name or ticker symbol.
- Place your order. Buy the stock. It’s that simple.
What to look for when choosing dividend stocks
It’s important to consider how each stock will fit into your portfolio and investment goals. Investors should select high-quality companies and weigh the following factors when choosing the best dividend stocks:
- Dividend yield. Dividend yield is a financial ratio that measures a stock’s annual dividend payment expressed as a percentage of the stock’s current price. For example, a stock that trades at $75 and pays a dividend of $3 each year has a dividend yield of 4%.
- The dividend yield moves inversely to the stock price. Generally speaking, if the dividend rate doesn’t change, the yield rises when the stock price falls and falls when the stock price rises. A high yield typically means more income per dollar invested. But a rise in yield may not be a good thing if the stock price is plummeting.
- Dividend payout ratio. This tells you how much of a company’s income it’s paying out in dividends. A low payout ratio could mean a company is reinvesting most of its earnings into expanding operations, while high dividend payout ratios could represent a steady income stream. Too high a payout ratio could be unsustainable, though.
- Dividend growth rate. Investors should look at how quickly the company has raised its dividend in the past. While it’s no guarantee, a history of strong dividend growth could mean future dividend growth is likely.
Pros and cons of investing in dividend stocks
Pros
- Finding the best dividend stocks can provide regular income
- Some stocks have been paying dividends for decades
- Dividend-paying stocks tend to be less volatile than non-dividend-paying stocks.
Cons
- High dividend yields can be misleading
- Dividend payments are never guaranteed
- Some dividend stocks see little share price growth
Frequently asked questions
Are dividend paying stocks worth it?
Yes, finding the best dividend stocks can provide regular income and some stocks have been paying dividends for decades. But remember that dividend payments are never guaranteed and some dividend stocks see little share price growth.
More on investing
Best Stocks for Beginners With Little Money to Invest
These are the stocks to buy when you don’t have much to spend.
Read more…10 best gold stocks
Here are the 10 best gold stocks based on year-to-date returns for October 2024.
Read more…What happens if a brokerage firm fails?
Here’s what happens to your securities if your brokerage fails, and how your assets are protected by SIPC and FDIC.
Read more…More guides on Finder
-
Fundamental Analysis
Fundamental analysis of stocks can help you become a better investor and find the true value of stocks and other assets.
-
Best Stocks for Beginners With Little Money to Invest
These are the stocks to buy when you don’t have much to spend.
-
Today’s Best Brokerage Account Bonuses [Signup and Transfer Promos]
Explore the best bonuses for opening a new brokerage account.
-
5 best stock picking services of 2024
Compare the 5 best stock picking services, according to Finder’s analysis, and learn how to choose the best option for your needs.
-
eToro review 2024: Commission-free social trading and investing
eToro is a robust trading platform with an easy-to-use interface and no commissions on stocks and ETFs.
-
5 Top Graphene Stocks to Invest in Today
We’ve rounded up stats on some of the most popular graphene stocks, along with information on how they compare and how to invest.
-
Titan Review 2024: Wealth Management With a No-Advisory-Fee Robo-Advisor
Titan invest is a members-only automated platform best for hands-off investors looking to build wealth.
-
How to invest in the S&P 500 in 2024
What you need to know about investing in the leading indicator for the overall US stock market.
-
Wealthfront review: Low-cost automated and DIY investing
Learn about Wealthfront’s automated investing tools and services to see if it’s the right platform for you.
-
How to trade options
Read our beginner’s guide to trading options in the US.
Ask a question