Good dividend stocks are particularly coveted in volatile markets because they offer some sense of stability. While there are never any guarantees in investing, reliable dividend stocks come fairly close, as they can provide you with income to bank or reinvest, no matter what type of returns they generate.
Two great dividend stocks to buy right now are telecommunications giant Verizon Communications (VZ +1.64%) and oil and gas company Chevron (CVX +1.77%). Both of these stalwart dividend stocks offer high yields and have long track records of increasing their dividends.
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1. Verizon Communications
Verizon raised its dividend to $0.69 per share, payable Feb. 2, maintaining the amount it had the previous quarter. If Verizon maintains this level, it would be the 20th consecutive year of dividend increases for the company.
The reliability is impressive, but the yield is even better. Currently, Verizon offers a yield of 6.2%, which is about six times higher than the average yield on the S&P 500 and one of the highest you'll find. The yield is the percentage of the share price that goes to the dividend, so a higher yield means more dividend income per share purchased. In this case, 100 shares of Verizon would generate $69 per quarter.
NYSE: VZ
Key Data Points
Verizon has a decent payout ratio of 58%, meaning 58% of net income goes to maintain the dividend. That's a tad high, but still in a manageable range. A payout ratio over 60% could mean the company is stretching to maintain the dividend at the expense of investing in growth.
But Verizon just had one of its best quarters in years, adding nearly 1 million net additions to its mobility and broadband services -- the most since 2019. For 2026, it expects to grow its phone net additions by two to three times, increase its earnings per share by 4% to 5%, and boost its free cash flow by 7%.
Verizon should deliver more than a good dividend in 2026, but also solid returns.
2. Chevron
Chevron just boosted its dividend in January by 4% to $1.78 per share, at a yield of 4.03%. Obviously, it's not as high as Verizon, but it's still one of the better yields out there. And Chevron has now increased its dividend for the 39th straight year -- a testament to its reliability.
NYSE: CVX
Key Data Points
Chevron stock reached a three-year high at the end of January, fueled by solid quarterly results and investor optimism about the potential for increased production in Venezuela after President Nicolas Maduro was removed from office.
Even though earnings beat estimates, they were down significantly year over year due to several factors -- lower oil prices, a one-time pension hit, and costs to integrate the acquisition of Hess. This creates a high payout ratio.
But that should come down, and the dividend looks to be in good shape. That's because the company has strong financials with $5.5 billion in free cash flow, up from $4.4 billion, and a debt-to-equity ratio of 0.21, one of the lowest in the industry.
Plus, the company increased its worldwide production in Q4 in both the U.S. and worldwide, so that should boost revenue and potentially offset any price declines.
These factors indicate that Chevron is well-positioned to keep funding its dividend for years to come.
