Dividend stocks are simple: They're shares of companies that pay investors a portion of their profits at regular intervals, generally quarterly. Not all companies pay dividends, and historically dividend stocks have outperformed non-dividend-paying stocks. In addition to offering a steady stream of income, dividends give investors potential to build long-term wealth through the power of compounding, and dividends offer more stability to a portfolio.
With all that said, here are two excellent dividend stocks to dig into today.
Model T moment
Ford Motor Company (F +0.04%) is betting on its innovation for its next Model T moment, and it can be broken down into three parts. First, Ford's Universal EV Platform is a new platform that enables a family of vehicles to be produced at scale for customers and at more affordable prices.
Second is an upcoming breakthrough product. The first vehicle on the new platform will be a midsize four-door electric pickup, but the kicker is a price tag that's expected to start around $30,000 -- it should reach consumers in 2027.
Image source: Ford Motor Company.
Last but not least is a better assembly line. Ford went back to the drawing board and combined its industrial prowess to create what the company calls the Universal EV Production System. Essentially, large single-piece aluminum unicastings replace dozens of smaller parts, which enables the front and rear of the vehicle to be assembled separately before being combined with the third sub-assembly that includes the battery.
All in all, the new production system combined with the universal platform could make assembly of the new midsize electric truck up to 40% faster. Some of that savings will be reinvested into automation and other factors, resulting in a 15% speed improvement.
Ford is working diligently to quickly reverse its steep EV losses, which would be a huge boost for the company's bottom line, and its potential dividend -- remember Ford's Model e division, responsible for its EVs, lost over $5 billion in 2024. Ford is an attractive dividend stock thanks to a pile of cash, a cheap 12 times price-to-earnings ratio, and a dividend yield around 4.3% -- and that doesn't even include the supplemental dividends Ford often dishes out annually.
If you're looking for a solid dividend stock, Ford is a great place to start.
NYSE: F
Key Data Points
Restoring growth
General Mills (GIS 2.41%) is a global packaged-food powerhouse that produces and sells snacks, cereal, convenient meals, pet food, and more. It also boasts recognizable brands that fill the aisle shelves with names such as Nature Valley, Old El Paso, Pillsbury, Betty Crocker, Cheerios, Blue Buffalo, and Haagen-Dazs.
Despite all of its name brands, the company is of course still seeking growth and is strategically bolstering its near-term investment in consumer value, product news, innovation, and brand building. Essentially, General Mills is trying to restore its organic net sales growth by investing in itself.
One example of its recent investments can be found in its important pet food category, with Blue Buffalo holding top share in the U.S. dog food market as well as sixth position in the U.S. cat food category. Not only are those categories growing fast, thanks to increasing pet ownership and humanization, but General Mills will introduce Blue Buffalo into the fresh pet food market, the fastest-growing subcategory, according to Morningstar.
NYSE: GIS
Key Data Points
Investors looking for a stable stream of income from investments can rest soundly knowing that General Mills has a long history of dividend payments that stretch back without interruption for 127 years. The packaged-food giant's $0.61-per-share quarterly dividend gives it a yield of about 5.2%.
Are they buys?
Both Ford and General Mills face challenges. The global automaker faces increasing competition from expanding Chinese brands and General Mills needs to adjust to consumer preferences that are trending more healthy. Despite their challenges, both companies have solid businesses, balance sheets, and dividend yields that income investors can take to the bank.
