9 Safe High Yield Dividend Stocks To Buy: March 2023

This trading strategy invovles purchasing a stock just before the ex-dividend date in order to collect the dividend and then selling after the stock price has recovered. As soon as you are financially able, consider reinvesting your dividends. You’ll build your share count and wealth potential faster—which puts you solidly on the road to financial independence.

The JPMorgan Diversified Best high yield dividend stocks International Equity ETF isn’t sold as a dividend ETF, per se, but a high yield and reasonable expense ratio propel it onto our list. JPIN tracks the JP Morgan Diversified Factor International Equity Index, but not too closely. The fund uses a factor approach to screen for value, quality, and momentum indicators, which may offer the potential for higher returns. Build conviction from in-depth coverage of the best dividend stocks. Company guidance and analyst growth projections are also useful to you as a dividend investor. A flat or negative outlook could impact your future dividend payments, yield and the value of your shares.

A below-average payout ratio and solid outlook for long-term earnings growth should keep the dividend increases coming. PPG’s last raise came in July 2022 with a 5.1% bump in the quarterly distribution to 62 cents per share. The company last raised its dividend in November 2022, by 2.1% to 12.25 cents a share per quarter. Ample free cash flow and a reasonable payout ratio should help ensure that the annual dividend increases keep on coming. That baseline measurement aside, investors shouldn’t buy a stock because of itsdividend yieldalone. It should be a high-quality company with durable cash flow, a strong balance sheet, and visible growth potential.

What’s an Investor to Do?

Like the rest of the medical device industry, CAH faced challenges during the pandemic as patients put off elective surgeries. But the company still managed to generate ample free cash flow and the dividend increases such cash flow supports. A combination of acquisitions, organic growth and stronger margins have helped Roper juice its dividend without stretching its profits.

In addition, share repurchases may constitute another significant growth driver. On February 1, 2023, Enterprise Products announced its financial results for the three months and year ended December 31, 2022. The partnership generated Q4 GAAP EPS of $0.65, beating analyst estimates by $0.03 along with revenue of $13.65B (+20.1% Y/Y), missing analyst estimates by $1.09B. Here, we are using ‘best’ in terms of highest yields with reasonable and better dividend safety.

The REIT, which pays its dividend monthly, has made more than 630 consecutive payments. Even better, it has increased its payout more than 100 times since its initial public offering in 1994, expanding it at a 4.4% compound annual rate. Vail Resorts owns and operates some of the most iconic ski resorts in the country. While Vail suspended its payout a few years ago due to the COVID-19 pandemic, it has since reinstated and continued increasing the dividend.

More from InvestorPlace

Formed in 2003 with a small https://forex-world.net/ of structured real estate loans, Arbor Realty Trust has grown to become one of the most diversified mortgage REITs in the industry. Despite these challenges, which result in cyclical profits for LyondellBasell, the company has paid higher dividends every year since 2012. Looking ahead, long-term box demand will likely grow slowly but steadily thanks to increased e-commerce activity and stable shipments in key markets like food manufacturing. These qualities have helped International Paper generate positive free cash flow in all manner of economic environments.

Although passive income has always been a strong component of a well-balanced portfolio, investors may want to pay particular attention to high-yield dividend stocks to buy. Should the Federal Reserve continue to move forward with its interest rate hikes, bond yields will rise. In turn, securities that can’t keep pace with a higher dividend yield may suffer the consequences. The company has paid dividends since 1956 and has boosted its annual payout for 66 consecutive years, including its last increase – a 1% bump to 52 cents per share quarterly – declared in October 2022.

And with a conservative payout ratio and four straight decades of dividend growth, that confidence is indeed well placed. The strategy should to provide support for McCormick’s dividend, which has been paid for 99 consecutive years and raised annually for 37. MKC last declared an increase to its dividend in November 2022 – a 5.4% raise to the quarterly payment to 39 cents per share. Indeed, Cardinal Health has upped the ante on its annual payout for 36 years and counting. The Aristocrat last raised its disbursement in May 2022, declaring a 1% increase in the quarterly dividend to 49.57 cents per share.

And even when CINF stock was bottoming out, investors knew they could count on their dividends. Indeed, at 63 consecutive years and counting, Cincinnati Financial boasts one of the longest dividend growth streaks of any Dividend Aristocrat. Thus, REITs are well known as some of the best dividend stocks you can buy.

• From there, it’s a natural next step to define personalized parameters for acceptable dividend stocks.
• Dividends are usually paid quarterly but can be paid semi-annually or annually.
• BDX last raised its payout in November 2022 with a 4.6% raise to the quarterly dividend to 91 cents a share.
• This dividend stream can come in handy as an investor can do whatever they want with this income while their cash is parked in their stock picks.

That said, Verizon and its predecessors have paid uninterrupted dividends since 1984, a streak that seems likely to continue. Verizon historically maintained superior network reliability, speed, and performance, allowing the telecom giant to charge premium rates and enjoy lower churn. The REIT’s diverse portfolio is leased to more than 350 tenants operating in over 25 industries across the U.S. and Europe. To keep its high dividend safe, Main Street maintains a well-diversified loan portfolio with around 150 companies represented. As a BDC, Main Street provides debt and equity capital to relatively small, highly leveraged companies that can’t tap traditional financing from banks. None of those have an ex-dividend date prior to the June expiration.

Yield

We think the market is overly focused on Verizon’s challenges to add postpaid consumer wireless customers, says Morningstar director Mike Hodel. Hodel expects margins and cash flow to move higher as network projects are completed and the promotional environment eases. This dividend stock offers the highest forward yield on our list; Hodel observes that 50% to 60% of Verizon’s free cash flow is committed to the dividend. Indeed, 67 consecutive years of annual dividend increases is proof positive of the company’s commitment to returning cash to shareholders. Archer Daniels Midland has paid out dividends on an uninterrupted basis for 89 years.

If the business sees its cash flows decline, or worse is losing money, it may reduce or eliminate its dividend. Business declines often coincide with and or accelerate during recessions. In practice most dividend stocks pay dividends quarterly, so you would actually receive 3x the monthly amount quarterly instead of receiving a payment every month.

best investments in April 2023

Blackstone stock trades 29% below our fair value estimate of $115 and lands on Morningstar’s list of the top 33 undervalued stocks for the second quarter of 2023. We expect the firm to continue to favor dividend payouts versus share repurchases. Duke Energy stock is modestly undervalued, trading just 5% below our $105 fair value estimate.

KeyCorp is a holding company for commercial and consumer financial institution KeyBank National. The Ohio-based bank operates roughly 1,000 branch locations across 15 states. Walgreens Boots Alliance operates retail pharmacies across the U.S., Europe and Asia. Its U.S. pharmacy business administered about 35 million COVID-19 vaccinations in its 2022 fiscal year. Philip Morris sells cigarettes and smoke-free products in more than 180 countries outside the U.S. While we adhere to stricteditorial integrity, this post may contain references to products from our partners.

To diversify their portfolios across a broad range of sectors, investors also turn to dividend-focused exchange-traded funds. These funds reported strong performance last year considering the market downturn. Dividend funds declined by 6.68% on average in 2022, compared with a 19.4% drop in the S&P 500. Consolidated Edison, or ConEd, is an electric and gas utility focused on the New York City metro area. The company has increased its payout for the past 49 consecutive years, the longest streak of any utility in the S&P 500 index.

For this list, we selected dividend stocks that have regularly paid dividends to shareholders and have yields above 6%, as of March 18. After that, we sorted these dividend stocks using Insider Monkey’s proprietary hedge fund sentiment data as of Q4 2022, which means that these stocks are popular dividend stocks among elite hedge funds. The list is ranked in ascending order of the number of hedge funds having stakes in the companies.

Prudential Financial (PRU)

Unlike most other ETFs on our list, this one owns smaller market cap firms with value characteristics. This fund might be considered a bit riskier due to its allocation to smaller global companies. A history of dividends also requires discipline with respect to decision-making. Corporate leaders can use cash in many ways, from strategic acquisitions to share buybacks. Good dividend-paying companies find a balance between funding growth initiatives and rewarding their shareholders. In 2022, Regions raised its quarterly dividend payment from $0.17 to $0.20.

While dividend stocks are known for the regularity of their payments, they may be cut to preserve cash in difficult times. American Electric Power stock is just barely undervalued, trading 2% below our $97 fair value estimate. One of the largest regulated utilities in the U.S., AEP operates numerous utilities and provides investors with protection from any one adverse regulatory ruling, argues Bischof. The company is reviewing its businesses and reallocating capital to more attractive growth opportunities, such as electric transmission and distribution infrastructure. Bischof adds that the company’s dividend policy to pay out 60% to 70% of earnings is appropriate, and we expect the balance sheet to remain sound.

You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. EOG Resources – Strong Buy, based on 21 analyst ratings, 18 Buy, 3 Hold, and 0 Sell. In addition to pharmaceuticals, it also manufactures medical devices. Its portfolio includes branded generic drugs, medical devices, nutrition and diagnostic products.

Recent Analysts Ratings of Dividend Stocks

Only around 10% of leases expire annually over the next few years as well, providing some protection for cash flow while office fundamentals stabilize. Ares Capital’s large size also makes it easier to maintain a well-diversified portfolio. The BDC’s investments span more than 400 companies, none greater than 2% of the portfolio. This reflect’s the firm’s scale, feedstock flexibility (including cost-advantaged natural gas in the U.S.), solid balance sheet , and ability to reduce capital spending and costs during downturns. With increased focus from management on the core business, AT&T has shown steady growth in wireless services and broadband revenue while also improving margins. We like the actively managed Harbor offering Harbor Dividend Growth Leaders, ranked five stars by Morningstar.

We’d like to share more about how we work and what drives our day-to-day business. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Susan Dziubinski does not own shares in any of the securities mentioned above.

This impressive track record reflects the company’s focus on dominating niches that can deliver predictable cash flow. The BBB+ rated company maintains a healthy payout ratio near 50% and will retain more free cash flow in the years ahead as 5G network spending peaked in 2022. These traits have helped National Retail maintain high occupancy rates and stable cash flow over time, enabling shareholders to enjoy higher dividends each year since 1990. A ruling in 2021 by the ACC significantly reduced Pinnacle’s allowed return on equity.