Best dividend stocks

Finding the best dividend stocks isn’t an exact science, but we’ve put together an in-depth guide with plenty of insights to give you some inspiration.

Best dividend paying stocks See list

If you’re an investor looking to build wealth through a regular income stream, dividends can be your best friend. But with so many options available, how do you find the best dividend stocks and what should be wary of?

There’s no definitive way to display the “best” dividend stocks, so we’re going to cover all the top dividend-paying stocks across a few different metrics and categories to help you find the right company.

Best dividend stocks for 2024

  • A2A SpA (A2A)
  • Adecco (ADEN)
  • Lenovo (00992)
  • New World Development (00017)
  • Janus Henderson (JHG)
  • Great-West Lifeco (GWO)
  • Sumitomo Forestry (1911)
  • Legal & General (LGEN)
  • Bouygues (EN)
  • Toyo Seikan Group Holdings (5901)

How we found the best dividend stocks

In order to build our list of the top 10 dividend stocks for 2024, we’re exploring stocks from all over the globe. To create our list, we’ve used the top 10 constituents (by yield-driven weight) in the S&P Global Dividend Aristocrats index.

Top 10 stocks by dividend yield

To make it onto the S&P Global Dividend Aristocrats index, each stock must have followed a policy of increasing (or stable) dividends for at least 10 consecutive years and be a high-yielding company within the S&P Global Broad Market Index (BMI). You can find more details about each stock below.

Dividend stockTickerSectorStock ExchangeDividend yieldBuy shares
A2A SpAA2AUtilitiesBorsa Italiana (BIT)5.2%Invest nowCapital at risk
AdeccoADENIndustrialsSIX Swiss Exchange (SWX)6.7%Invest nowCapital at risk
Lenovo0992Information technologyStock Exchange of Hong Kong (HKEX)4.6%Invest nowCapital at risk
New World Development0017Real EstateThe Stock Exchange of Hong Kong (HKEX)11.2%Invest nowCapital at risk
Janus HendersonJHGFinancialsNew York Stock Exchange (NYSE)5.8%Invest nowCapital at risk
Great-West LifecoGWOFinancialsToronto Stock Exchange (TSX)5.2%Invest nowCapital at risk
Sumitomo Forestry1911Consumer discretionaryTokyo Stock Exchange (TSE/TYO)3.1%Invest nowCapital at risk
Legal & GeneralLGENFinancialsLondon Stock Exchange (LSE)8.3%Invest nowCapital at risk
BouyguesENIndustrialsEuronext Paris (EPA)5.6%Invest nowCapital at risk
Toyo Seikan Group Holdings5901MaterialsTokyo Stock Exchange (TSE/TYO)3.7%Invest nowCapital at risk

Best dividend-paying stocks by category

Because searching for the top dividend stocks is such a broad question, we’ve helped you narrow down your research by breaking down the best dividend-paying shares by category.

Platforms where you can invest in the best dividend stocks

These trading apps allow you to invest in companies within teach index directly or to invest in funds/ETFs (exchange-traded funds).

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Best investment trust dividend stocks

Often overlooked, investment trusts can be a reliable way to earn dividend income. This is because their structure means up to 15% of profits can be withheld and then paid out another time for smoother dividends (something individual dividend stocks don’t do).

With an investment trust, you also get a diversified portfolio of holdings with a single investment and expert management. Below are the top dividend investment trusts from the AIC “dividend heroes” list, increasing dividends for over 20 years in a row.

How are dividend yields calculated?

George Sweeney

Finder expert George Sweeney answers

When you’re looking at dividend stocks, you’ll notice that one of the most-highlighted metrics is the dividend yield. This is usually shown as a percentage and the basic calculation is:

Dividend amount (in pounds, pence or dollars, for example) divided by the current share price. One thing to watch out for is that a higher dividend yield may look attractive but this can sometimes happen because the underlying share price is falling.

When a situation like this takes hold of your investment, you could end up losing more money in the depreciation of the shares than you make with a higher percentage dividend yield.

Pros

  • Finding the best dividend stocks can provide regular income
  • Some stocks have been paying dividends for decades
  • If you hold dividend stocks in a stock and shares ISA, you don’t pay UK tax

Cons

  • High dividend yields can be misleading
  • Dividend payments are never guaranteed
  • Some dividend stocks see little share price growth

Bottom Line

Finding the best dividend stocks for your portfolio isn’t an easy task. When you start researching dividend-paying stocks that suit your style of investing, you’ll notice it’s pretty hard to narrow down your options.

Ideally, look for a strong past track record but also check the current financial health of a company or investment to ensure it can keep paying dividends. Regular income through dividend stocks is an excellent way to provide your portfolio with a level of stability, and help with compound growth. Keep in mind that dividends aren’t guaranteed and be wary of becoming greedy and chasing high dividend yields.

Frequently asked questions

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

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