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Dividend investors should focus not on dividend size but on dividend yield.
Dividend stocks are shares of companies that make regular distributions to their shareholders, usually in the form of cash payments. Dividend stocks can be a useful source of income, but the best dividend stocks can also be an excellent way to build wealth over the long term.
However, not all dividend stocks are great investments, and many investors are unsure how to start their search. With that in mind, here's a list of dividend-paying stocks you might want to consider and some of the most important things to look for in top dividend stocks.
If you want to buy shares of any dividend stock, here's what you need to do.
The Dividend Kings list is a great place to find top dividend stocks. These companies have paid and raised their base dividends for at least 50 consecutive years. The Dividend Achievers list, whose companies boast 10-plus straight years of dividend increases, is a trademarked property owned by Nasdaq and another great list to research. Here are nine top dividend stocks to consider buying now.
Home improvement giant Lowe's may not seem like a very exciting stock. And that's true -- unless you like dividend growth. The company has raised its dividend almost every year since going public in 1961 and has raised the payout by more than 300% over the trailing decade alone.
Investors worried about the housing downturn shouldn't fret. When the housing supply is tight, homes are harder to buy, and people tend to spend more to upgrade their existing homes. So, any cyclical weakness in its results will likely return to growth over the long term, even if short-term shifts in consumer spending cause an overall slowdown in renovations.
If you're looking for a simple way to invest in high-quality real estate for income and growth, Realty Income might be the perfect stock. The company owns an array of largely e-commerce-resistant properties, earning strong cash flow from tenants on long-term leases.
Realty Income has also recorded more than three decades of consecutive annual dividend increases every year since going public in 1994 -- and more than 55 straight years of paying a dividend every month. Since its founding, Realty has declared 663 consecutive monthly dividends and just raised its monthly dividend for the 132nd time since the real estate investment trust (REIT) was publicly listed.
For years, Chevron has been a solid stock to own and a big winner for investors, especially for dividend investors. It has maintained a steady track record of generating strong cash flows and growing payouts modestly every year for 38 years and counting.
The stock price can fluctuate with oil prices, and Chevron has been part of the volatility trend afflicting many oil stocks recently. Still, Chevron has proven to be a profitable investment for dividend-seekers over the long term.
For years, Target was more profitable than its peers, posting some of the highest gross margins and operating margins in retail. At the same time, its focus on increasing its e-commerce business and expanding in-store offerings has helped stabilize its top line while improving profitability.
While it's facing some near-term struggles, Target's balance sheet remains well-shored up to support its commitment to paying dividends to shareholders.
Over the past four decades, Starbucks has established itself as the dominant global brand in coffee beverages.
With more than 40,000 global stores, as well as Starbucks-branded ready-to-drink beverages and packaged coffee in hundreds of thousands more locations, nobody sells -- or buys -- more coffee than this company.
Sometimes, the best stocks are the ones hidden in plain sight. That's the case with Brookfield Infrastructure, which owns water, energy, utility, transportation, and communications infrastructure projects worldwide.
At recent Class C share prices, it paid a dividend yield of about 4.1%, more than 5% for the limited partner units, and aims to raise the payout by 5% to 9% every year.
Microsoft is one of the most important software companies on the planet. Over the past decade, it has rebuilt its business to focus on recurring subscription-based revenue that keeps its customers connected and the cash flowing.
Its yield of less than 1% at recent prices hasn't put it on many dividend investors' radars. But what it hasn't paid in yield, Microsoft has absolutely delivered, with total returns of more than 3,000% since 2009 and dividends accounting for a portion of those total returns.
Financial services, such as consumer and business lending, are another place to find a handful of top dividend stocks, and American Express is one of the best.
Although it's not on the list of companies that raise their dividends every year, Amex has a decades-long track record of either raising or maintaining its dividends through every economic environment.
Renewable energy is mostly considered a place for growth investors, but it's also a wonderful opportunity for dividends. Clearway Energy is a perfect example.
The company invests in, acquires, and operates renewable energy facilities, selling the power on long-term contracts -- think decades, not years -- to utility companies and large power consumers. Its dividend yield was around 5.6% as of October 2025.
Whether you're looking to generate income you'll use today or the capital you can reinvest to increase your wealth, there's a good chance you're looking for a big dividend payout. If you're hoping to maximize the value of dividends you earn, here are some suggestions.
First, consider dividend yield above dividend size. The dividend yield is a percentage of the share price you paid for the stock, paid in dividends annually.
Don't make owning high-dividend-yielding stocks your No. 1 priority. Focus first on the quality of the business and the company's ability to maintain and increase the payout.
This article hits on a few things to avoid (e.g., focusing too much on a high yield that may be a trap) and the power of dividend growth stocks as some of the best winners. Here are some key things to look for when investing in dividend stocks.
Dividend stocks and dividend funds are both popular ways to generate income and potentially grow your investments.
On the flip side, dividend stocks provide the potential for higher returns but also higher risk. It also takes time and effort to carefully research each individual business to determine whether it is a good fit for your portfolio. Both types of investments can offer advantageous returns for a long-term investor with a well-diversified portfolio and a durable time horizon.
Dividend investors often prefer to focus on companies in a range of sectors with stable cash flows and predictable earnings. The best sectors can offer different advantages, from high yields to steady dividend growth.
However, the right mix really does depend on your investment goals. The utilities, energy, healthcare, consumer goods, and financial sectors contain some of the top dividend-paying companies to consider.
Name and ticker | Market cap | Dividend yield | Industry |
---|---|---|---|
Lowe's Companies (NYSE:LOW) | $136.6 billion | 2.40% | Specialty Retail |
Realty Income (NYSE:O) | $55.1 billion | 5.32% | Retail REITs |
Chevron (NYSE:CVX) | $318.5 billion | 4.35% | Oil, Gas and Consumable Fuels |
Target (NYSE:TGT) | $42.7 billion | 4.79% | Food and Staples Retailing |
Starbucks (NASDAQ:SBUX) | $97.2 billion | 2.85% | Hotels, Restaurants and Leisure |
Brookfield Infrastructure (NYSE:BIPC) | $5.8 billion | 3.87% | Gas Utilities |
Microsoft (NASDAQ:MSFT) | $3.9 trillion | 0.64% | Software |
American Express (NYSE:AXP) | $242.5 billion | 0.90% | Consumer Finance |
Clearway Energy (NYSE:CWEN) | $3.7 billion | 5.61% | Independent Power and Renewable Electricity Producers |