Top 10 Dividend Stocks To Buy

Coca-Cola($KO):-

• Forward Dividend Yield: 3.4 %
• Cash DividendPayout Ratio: 99 %
• Consecutive Years of Dividend Growth: 58

Coca-Cola’s payout ratio spiked over the past year due to the refranchising of its bottlers and its acquisition of Costa Coffee, but those levels should normalize over the long term. Besides that temporary spike, all five companies have generated firmly positive free cash flows — which fed sustainable cash dividend payout ratios below 100% — over the past decade.

Procter & Gamble($PG):

• Forward Dividend Yield: 2.5 %

• Cash DividendPayout Ratio: 57 %

• Consecutive Years of Dividend Growth: 64

P&G rules supermarket aisles with brands like Bounty, Charmin, and Pampers, while Colgate-Palmolive locks in shoppers with its personal care and cleaning products.

Colgate-palmolive($CL):

Colgate-Palmolive may all look like slow-growth investments. Yet investors who simply bought the stocks 10 years ago and left them alone are now sitting on some big gains. However, investors who bought them in 2010 and reinvested their dividends fared even better:

Johnson & Johnson($JNJ)

• Forward Dividend Yield: 2.8 %
• Cash DividendPayout Ratio: 58 %

Johnson & Johnson generates stable cash flows from its diverse pharmaceutical, medical device, and consumer healthcare businesses, while Hormel recently reported strong sales of its packaged meats and Spam’s fifth straight year of record sales. Simply put, all five companies own well-diversified businesses that can easily weather economic downturns.

Hormel Foods($HRL):

• Forward Dividend Yield: 1.8 %
• Cash DividendPayout Ratio: 61 %
• Consecutive Years of Dividend Growth: 54

while Hormel recently reported strong sales of its packaged meats and Spam’s fifth straight year of record sales. Simply put, all five companies own well-diversified businesses that can easily weather economic downturns.

 Novartis($NVS):

• Current yield: 3.5%

Novartis admittedly only pays dividends once a year, but that shouldn’t matter when your holding period is forever – and with a robust product pipeline alongside a stable of proven moneymakers, the future looks very bright for this health care play beyond the fad of pandemic investments in 2020.

Verizon Communications ($VZ):

• Current yield: 4.5%

On top of that, its FiOS fiber-optic service for homes and business is growing strong. Thanks to its investments in network quality, VZ will remain a force for many years to come. And as long as customers keep paying their bills, that will result in a reliable income stream for shareholders.

3M($MMM):

• Dividend Yield: 3.7%
• Annual Dividend Increases: 61

its humble beginning in 1902, 3M has grown to a more than $90 Billion business. The company has economies of scale and markets more than 60,000 products. This diversification helps keep sales and profits flowing.

That consistency has helped 3M make it onto the list of Dividend Kings. These are companies that have increased annual dividends consecutively for at least the last 50 years. The recent trailing 12-month payout ratio also comes in below 70%. 

Kimberly-Clark ($KMB):

• Dividend Yield: 2.9%
• Annual Dividend Increases: 47

Kimberly-Clark is one of the largest tissue and hygiene products producers. Its products reach an amazing one-quarter of the entire world’s population. And the pandemic has increased demand for some of its products.

The company’s diversification and scale have led to stable cash flows. The dividend yield also easily outpaces inflation and Treasury yields. The trailing 12-month payout ratio comes in at a low 56%. This, along with Kimberly-Clark’s financial health, makes the payout look safe going forward.

Sysco ($SYY):

•  Dividend Yield: 2.9%
• Annual Dividend Increases: 50

Sysco is one of the world’s largest food distributors. It helps deliver food products from producers to consumers. Some of its customers include restaurants, schools, governments, hotels, travel companies and healthcare buildings.

This diversification has helped it become one of the newest Dividend Kings. And similarly to Archer-Daniels-Midland, as long as people continue to eat, Sysco will profit along the way. As a result, Sysco is one of the best dividend stocks to buy and hold.