Check out these top 10 high dividend stocks.
Best High Dividend Stocks for 2023
If you’re looking to generate income from your investment portfolio, a great way to do that is to purchase dividend stocks. These are stocks that are known to consistently pay out dividends to their holders. Dividend stocks can be a great way to be invested but also get a little bit of kickback too.
In the market, there are all sorts of different sectors and strategies. Many stocks are geared toward growth, while others are geared toward income. It’s a good idea to have a diversified portfolio, but generating income is also a plus.
We’ve sorted through the options and figured out the top dividend stocks.
|1. Imperial Brands||★★★★★||Click Here|
|2. Magellan Midstream Partners||★★★★★||Click Here|
|3. Verizon||★★★★★||Click Here|
|4. V.F. Corporation||★★★★★||Click Here|
|5. Enbridge||★★★★★||Click Here|
|6. Enterprise Products Partners||★★★★★||Click Here|
|7. W.P. Carey||★★★★★||Click Here|
|8. Main Street Capital||★★★★★||Click Here|
|9. Legal & General||★★★★★||Click Here|
|10. BT Group||★★★★★||Click Here|
What is a Dividend Stock?
When you purchase a share of stock, you are purchasing a small amount of ownership in that company. Some companies will take a portion of profits and kick those earnings back to their shareholders. Other companies will reinvest those funds into growth and hang onto them.
A dividend stock is a stock that takes earnings and pays their shareholders a portion of revenues in the form of a dividend.
Dividends are announced ahead of time and the stock is given a dividend date, a record date, and an x date. These dates determine when the dividend will be paid, the date you have to be holding the stock to get the dividend, and the date that you can no longer purchase after to be a part of the dividend, respectively.
Some stocks have been known to pay dividends consistently, while others pay them at random. Some stocks never pay dividends. Dividends can be a valuable source of income, but you also want to ensure you’re getting into a sound investment, and not just choosing something purely for dividends.
In most cases, if you’re looking specifically for dividend payments, you want to see dividend yields that are over 4%. That being said, remember that you also want to choose sound and reliable stocks to hold to ensure the longevity of any form of payout.
Best High Dividend Stocks of 2023
Choosing high dividend stocks involves more than just pinpointing a company that pays a lot of dividends. There are many of those. But we also want to know that the stock is well-rated and that their dividend payouts aren’t just a one time thing.
Some dividends may not be super high, but understanding their consistency might just make a difference.
Check out these top 10 high dividend stocks!
1. Imperial Brands
Imperial Brands might come as no surprise to UK customers. This British company is a multinational tobacco company, and they are listed on the FTSE. They rank in with high dividends and a high rating. While the stock itself was down in 2022, their dividend yields remained steady at slightly over 6%.
Not everyone is willing to support a company that is tobacco and cigarette related, so this is your choice. However, if you’re looking for the long-term consistent dividends, they really do deliver.
This company typically pays dividends four times a year, which is actually an increase from the twice a year they used to pay.
Their dividend payouts have risen some over the years, but they remain mostly consistent. While the dates aren’t guaranteed until the dividend is announced, you can typically expect dividends to be paid around March, June, September, and December.
2. Magellan Midstream Partners
If you’re comfortable being invested in the oil and gas industry, they are some of the top dividend providers out there. The industry itself can be a little volatile, but the companies that pay out dividends do so kindly. And really, despite the industry volatility, the stocks of the reliable, long-standing companies are pretty safe overall.
Magellan is considered safe in terms of the company, but also in terms of dividend payouts. In 2022, their dividend payout was 8.3%, which is definitely a nice, high return for shareholders. This company was founded in 2000, and they’ve paid out a consistent dividend for the past 20 years.
They aren’t just into oil and gas, although that’s a big part of what they do. They also own oil pipelines and participate in the transportation of oil and energy resources too. Their cash flow has remained consistent through the years, and that’s where those nice dividends are coming from.
Verizon has been a long-standing company in wireless and internet services. Their stock falls into the communications sector. They’ve been around for a lot of years, and they have paid dividends out without interruption for 38 years. That’s pretty reliable overall, and particularly in the dividend realm.
The current dividend yield tied to Verizon is at 6.6%, which is a pretty steady yield return. industry.
With the world of wireless continuing to grow and certainly not going anywhere, it seems safe to say that this company will continue to be profitable and steadfast in the industry.
You should be able to purchase Verizon from any stock trading app that grants you access to the US markets. Verizon certainly dominates their industry, and they have a history of remaining at the top. They have high ratings and clear longevity.
4. V.F. Corporation
V.F. Corporation is a unique entity, but it’s one that has always paid dividends. This particular company falls into the retail sector, primarily with apparel. It’s a parent company for several popular brands, such as Vans, Timberland, North Face, Smartwool, Kipling, Dickies, and more. They own at least 12 prominent brands like this.
V.F. Corporation has been around for more than 100 years. Their dividend payouts have been consistent and uninterrupted for the past 50 years. They are also highly-rated and considered a safe investment thanks to their longevity and sustainability.
This is yet another high dividend stock that seems to be safe and reliable. If you’re looking for consistency, you can certainly find it here with 50 years of uninterrupted dividend payments. In 2022, their dividend yield was 7.4%, which is definitely great.
Enbridge is another company that falls into the oil and gas sector. This is a North American company, although they are Canadian. They are known for their pipelines, storage, processing, and other related business practices. Enbridge is one of the longest standing companies. They have been around since 1949.
Something else really awesome about this company is that they have been paying dividends for almost 70 years, and they haven’t missed a year since they started.
Again, the oil and gas industry can be a bit volatile in terms of ups and downs in the market, but the longevity of consistent dividends certainly says something.
The current dividend yield is 6.7%, which definitely falls into the high yielding categories. Because of their longevity, they are considered a safe investment. The majority of their contracts are long-term contracts, which speaks to the sustainability as well.
6. Enterprise Products Partners
Here is yet another oil and gas sector company, but they turn back some of the highest dividend yields that you will find on this list. The good news is that they have a long and steady history of safe investing, as well as high dividend payouts. The current dividend yield is at 7.9%, which is pretty awesome.
Enterprise has been around since 1968, but they haven’t always been dividend payers. Despite being established in 1968, they didn’t go public until 1998. However, they seem to have picked up a steady pace and have paid dividends for the past 23 years now.
They are high contributors to fossil fuels, particularly in the US market. However, they also have their hands in shale as well. They are a highly-rated company in the market, as well as with the BBB. Investing in this particular company will likely get you a K1 form at tax time so be aware of that.
7. W.P. Carey
Let’s dive into the real estate market for just a moment. Notice that this is another industry that is known for its volatility. The housing market has excelled in recent years, but they have had some incredibly challenging years too.
That being said, this company has paid dividends for the past 23 years, and their current dividend yield is 5.5%. They are also rated as safe in the market, or at least as safe as a market rating can be, right?
This company is a diversified REIT company. They invest in many different types of property from warehouses and industrial spaces to offices, self storage, and even retail. It’s all commercial based, but they make sure they are highly diversified so no single market will have a negative effect on the returns.
8. Main Street Capital
Main Street Capital falls into the financial sector. This company was founded in 1997, with their primary headquarters based in Texas in the United States. They are a business development financial company, and they are actually one of the oldest in this category. On top of that, they are one of the largest.
This safe dividend investment reports high dividend yields for the past 14 years, bringing you a solid pick. Their dividend yield reigns in at 7.3% currently, making them another top feature of our list. We also want to point out that they pay monthly dividends, which is not very common.
Despite the cyclical nature of a business like this, Main Street Capital has always paid high dividends. While the dividends don’t always go up, they have never gone down in the 14 years that they have been paying dividends.
9. Legal & General
Legal & General is a British business that is listed on the FTSE. Being listed on a local exchange might make beginners and conservative investors more comfortable. This company also falls into financial services, offering a variety of investments, pensions, insurance, and other financial services.
They strive to be able to yield high dividends for their clients, and they have developed into one of the largest fund management services out there. The majority of their funds are passively managed, making them far more affordable.
They consistently kick back dividends to customers at least semi-annually, but generally quarterly. Their historic dividend yield rings in at 6.9%, which is a steady marker, and well in line with the other names on this list.
10. BT Group
Last, but not least, is a high dividend communication stock that is another British company. BT Group is a telecommunication company with British headquarters. They serve a multinational customer base with more than 180 countries on their ledger.
In the UK, they specifically offer broadband, as well as mobile services. They have expanded into solutions that include television and IT as well, which certainly helped them. They have had positive returns in the past year, and they pay a great dividend.
This is a highly-rated stock that is listed on the FSTE. They have a bit of a narrow base, but they have a historical consistency of solid dividend payouts, and that’s what we’re looking at today. Their estimated dividend yield falls right at 6.7%, which is a great yield for high dividend seekers.
Their overall performance in 2022 ended down, but the new year already shows promising ups for the company in comparison.
The Benefits of Dividend Stocks
There are plenty of high dividend payers out there. For example, Wal-Mart has always paid dividends. While they don’t fall into the highest yields, they do have a reputation for steadily increasing their payouts with every single year. It’s slow moving but the continual increase is a nice perk.
A lot of companies will stay at a steady dividend payout, while others raise and lower based on their current profits. The dividends you receive are never guaranteed until the official announcement is made by the corporation in question.
There are a lot of great benefits to utilizing dividend stocks. The first of which is the ability to receive income on a steady basis. Even when the stock is down in the market, you’re still getting those dividend kickbacks, so you feel some profit no matter where they stand.
And these benefits don’t just apply to the investors either. A business that pays out dividends also benefits from doing so. Not only are their investors pleased with the income, but it can also help boost the ROI, or even the stock prices in some cases. It’s also a great way for businesses to push out some extra cash, helping their bottom line and liabilities quite a bit.
All of this said, a well-diversified portfolio is important. Even if you are looking for income and high dividends, you don’t want to just dive into a company simply for the dividends. Instead, choose companies that pay reliable, consistent dividends that are high, but also a company that is stable and steadfast.
The greatest benefit is the ability to generate long-term income you can depend on.
Choosing High Dividend Stocks
As you start picking and choosing what will work best for your portfolio, there are a few details to consider and keep in mind. Remember it’s not just about a high dividend, but also about a reliable payout that will generate income consistently and not just one time.
Here are a few ideas of things you may want to keep in mind.
Obviously, one of the top things you’re going to be looking for is the dividend payout. You want to see how often they pay out and what the annual dividend yield is. It might also be a good idea to check out their payout ratio. This number reflects how much of their earnings they pass through as dividends.
You want to see a somewhat high number, but you also want this to be sustainable so check for numbers that are less than 70%. Otherwise, you may not continue to receive a dividend here. We also shared some details above about how many years they paid dividends in a row, and this might be something to consider too.
Not every company will increase their dividends. In fact, there are plenty of companies that that decrease them. Their dividend payouts might solely depend on what their earnings are. You can expect some ups and downs, and that’s ok.
But what you want to know is whether they have consistently increased at all through the years. Now don’t judge them if they don’t increase every single year, but have they ever increased?
If a company can consistently raise their dividend, this is ideal. However, even just raising several times through the years makes a difference for a lot of investors too.
Another detail to keep in mind is whether this business is sustainable as a business. Every sector and business is going to have its ups and downs. This is just normal. That being said, even the ups and downs shouldn’t make us question whether a business will still be there next year.
Look for businesses that produce steadfast income and continue to have earnings each year. It’s best if the business revenue remains positive every year, rather than drastic fluctuations. We’re not talking about their stock prices here, but their bottom line basically.
The key to this factor is looking for businesses that are going to be able to sustain in their industry.
This is Long-Term
While stocks come and go, and businesses change over time, investing for high dividends and income should be a long-term approach. Really, most investment strategies are meant to be long-term.
This is why it’s so important to try to invest in businesses with a steadfast history and a good rating. You’re investing in a business that is slated to last and will provide you income on a consistent and lasting basis.
We can’t always predict the future, but when you invest with a long-term focus, it makes a huge difference in your outlook. It might also make a difference in the yields you receive now and in the future.
These 10 high dividend stocks don’t just pay out high yields. They have a history of paying out great dividends for many years, some of them up to 50 years historically. The only thing better than getting a great dividend yield, is getting one that will set you up consistently for the future.
These are just a few great options, but keep in mind there are tons of dividend stocks out there. Find the sector and the stocks that you are comfortable owning and start working them into your portfolio. That long-term income can be a great contribution to your finances.
Get Bank Deals & More
Sign up for our email updates on the best bank deals, money savings tips and more.