Dividend stocks are great tools to help you achieve financial freedom. Quality companies with a long track record of paying dividends will automatically deposit cash into your account, usually on a monthly or quarterly schedule. And this is a good time to go dividend hunting, as there are elite dividend payers offering high yields.
Here are two top dividend stocks to buy right now.
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For dividend investors, there’s a lot to like Realty income (NYSE: O ). Since 1969, it has paid dividends every month, and it is currently on a 30-year streak of annual increases. It is a real estate investment trust (REIT), which means the company must pay at least 90% of taxable income to shareholders. Realty Income’s most recent monthly dividend of $0.27 per share yields 4.92% annually.
This long history of dividend payments reflects a well-diversified asset portfolio. Realty Income owns properties serving more than 1,600 clients. Some of its top clients include: Dollar General, Wynn Resortsand FedEx. These businesses can withstand economic rough patches, helping Realty Income maintain consistent dividends for shareholders.
To add to the growth, Realty Income is expanding into Europe, where it is finding lower borrowing costs and more attractive investment yields than the US market. More than 70% of its investments last quarter were in Europe, yielding a weighted-average cash yield of 8%. The company uses a proprietary tool powered by artificial intelligence (AI) to underwrite and manage its operations, which should also lead to stable cash flow and dividends.
Overall, Realty Income enjoys high occupancy rates and has prioritized maintaining a strong balance sheet without using additional leverage. The prospect of lower interest rates, following two rate cuts by the Federal Reserve last year, is a near-term motivator for stocks. Its consistent dividend history and high yield make it an attractive income investment.
PepsiCo (NASDAQ: PEP ) It has a strong portfolio of brands in beverages and snacks. It has supported growing sales and dividend payments for decades. PepsiCo has raised its dividend for 54 consecutive years, and announced a planned 4% increase in its annual dividend (paid quarterly) beginning in June. That would bring its full-year dividend to $5.92 per share, or a forward yield of 3.46%.
