Given the recent sharp sell-off in many software companies' stocks as investors debate the impact AI (artificial intelligence) will have on them, it's a good time to revisit the idea of dividend-paying stocks. One of the great things about a dividend is that each payment to shareholders essentially takes some risk off the table, as it puts cash directly in shareholders' hands.
In other words, without dividend payments, investors have to trust that management will make good capital allocation decisions with every penny. But a dividend payment means that investors get to decide what to do with at least a portion of a company's earnings. During times of uncertainty, therefore, it would make sense for investors to place more value on these dividend payments.
So, for any investors looking for good dividend stock ideas to bolster their portfolios with during a period of AI-related uncertainty, here are two top ideas: rural retailer Tractor Supply (TSCO 2.81%) and social media company Meta Platforms (META 2.52%). Though these are two very different companies, they are both durable, dividend-paying companies with attractive long-term prospects.
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Meta: A small but notable dividend
While it might seem surprising at first to see Meta show up in a list of top dividend stocks to buy, keep in mind that investors should consider more than just dividend yield when buying a dividend stock. What good is a high dividend yield, for instance, if the stock price declines over time? And why overlook a small dividend yield if that dividend payment is expected to grow substantially over time?
With a dividend yield of just 0.3%, some dividend investors may find Meta's dividend laughable.
NASDAQ: META
Key Data Points
But consider these other factors when assessing Meta as a dividend stock. First, note that Meta's payout ratio, or the percent of its earnings it pays out in dividends, is just 9%. This means the company has massive room to increase its dividend over time. Next, consider the health of Meta's balance sheet. The company ended 2025 with cash, cash equivalents, and marketable securities of $81.6 billion. This compares to its long-term debt of $58.7 billion. And finally, the company is growing very rapidly. Revenue and earnings per share for the fourth quarter of 2025 rose 24% and 11% year over year, respectively. And the midpoint of management's guidance range calls for about 30% year-over-year revenue growth in Q1.
Tractor Supply: A meaningful and reliable dividend
Meanwhile, rural retailer Tractor Supply is a much slower-growing company, with fiscal 2025 sales rising just 4.3% year over year and the company guiding for full-year fiscal 2026 sales to increase at a rate of 4% to 6% year over year.
But the company rewards investors with a more substantial dividend yield. As of this writing, Tractor Supply's dividend yield sits at about 1.7%.
Of course, the rural retailer pays a larger percent of its earnings in dividends. Its payout ratio currently stands at about 45%. With that said, this is a fairly conservative payout ratio for a company with a dividend yield of 1.7%.
Additionally, it's worth noting that even though Tractor Supply guided for 4% to 6% sales growth this year, the company believes that its sales growth can accelerate over time. In a 2024 Investment Community Day presentation, the company said it expected to eventually achieve a "long-term financial algorithm" of average annualized net sales growth and earnings-per-share growth rates of 6% to 8% and 8% to 11%, respectively.
NASDAQ: TSCO
Key Data Points
With Meta and Tractor Supply trading at price-to-earnings ratios of 29 and 26, respectively, I think both of these stocks are attractively priced relative to their long-term potential. Of course, there are risks for both companies, so investors should keep their positions relatively small. But both investments are arguably well-rounded options for investors looking to add more dividend payments to their portfolios.
