Whether you’re trying to get started investing for early retirement or looking to earn supplemental income for the present day, the best dividend stocks in 2024 present a powerful opportunity. We’re here to share the top 10 choices right now to set you up for success:

  1. Duke Energy (DUK)
  2. AT&T (T)
  3. Chevron (CVX)
  4. Johnson & Johnson (JNJ)
  5. Caterpillar (CAT)
  6. Medtronic (MDT)
  7. International Business Machines (IBM)
  8. Comcast (CMCSA)
  9. Brown-Forman (BFB)
  10. Church & Dwight (CHD)

Of all the different stock investment strategies, building a stock portfolio with dividend-paying stocks is one of the best options. So why are dividend stocks worth it? After all, they don’t offer the exciting 500% returns you’ll enjoy with some of these aggressive stocks to buy now

However, they do offer steady returns in two different ways: 1) regular dividend payouts and 2) potential capital gains from slow but consistent stock appreciation. 

The key is knowing how to pick a stock, which is why we’re not just going to show you the best dividend-paying stocks on the market. You’ll learn how to find and execute these opportunities and how VectorVest’s stock analysis software can streamline your efforts, saving you time and stress while empowering you to win more trades.

So, read on below to discover the secrets to success as you begin trading the best dividend stocks to buy and hold in 2024 – or see what a difference our stock advisory services can make in your strategy today!

What are the Best Dividend Stocks to Buy and Hold in 2024?

So, what are the best dividend stocks to buy and hold right now? Let’s not waste any time unveiling the best ​blue chip dividend stocks

However, we do want to preface this by saying that companies are constantly evolving, for better or worse. This is to say that depending on when you’re reading this, there may have been shifts in what is still considered the best dividend-paying stocks. 

We will update this list as regularly as possible to keep it up to date, but you should also do your own due diligence in picking stocks – whether you’re trying to learn how to invest in dividend stocks for passive income or how to retire on dividends. We’ll get to that after this list of the 10 best dividend stocks in 2024.

Duke Energy (DUK)

Duke Energy is a powerhouse in the regulated electric industry with solid financial health and strategic market positioning. We also consider it to be a compelling undervalued stock to buy at its current price. 

The company’s structured dividend policy ensures a payout of between 65% and 75% of earnings, reflecting a commitment to shareholder returns. The trailing dividend of 4.07% isn’t sky-high, but it’s steady and safe.

Because it operates within a supportive regulatory framework, Duke ensures consistent service demand, showing it has financial stability and making the case for a great long-term investment.

AT&T (T)

AT&T has demonstrated solid performance in the telecommunications sector with substantial growth in both the wireless and fiber segments. The company recently pivoted towards expanding its fiber network and is now poised for future growth. 

Despite a past dividend cut, the company’s current dividend yield of 6.4% remains attractive, backed by a projected increase in free cash flow. AT&T is undergoing a financial revitalization with a promising outlook for dividend sustainability and potential increases post-debt reduction.

Chevron (CVX)

With a consecutive annual dividend increase of 37 years running, Chevron stands out as one of the best dividend stocks for those seeking steady returns. The company continues to showcase its priority to maintain and grow dividend payouts quarter after quarter, year after year. In fact, it just raised its dividend nearly 8% to $1.63/share!

The company’s strategic financial management isn’t just returning shareholder value through dividends – a strong share repurchase program positions Chevron as a reliable investment for anyone seeking stable dividends from the energy sector.

Johnson & Johnson (JNJ)

Perhaps the safest dividend stock for retirement is Johnson & Johnson with a consecutive annual dividend increase of 62 years in a row. The company has been around 138 years with no signs of slowing down anytime soon.

Johnson & Johnson is a leader in the healthcare industry thanks to its financial strength and diversification. Its broad portfolio in pharmaceuticals and medical devices shields against market volatility, making it a prime candidate for investors seeking dependable dividend income. Just last month the company raised its dividend to a solid $1.24/share.

 

Caterpillar (CAT)

Caterpillar has maintained a steady course of dividend growth for nearly three decades in a row, and hasn’t missed a dividend for almost 100 years. Much of this can be attributed to strong leadership in the manufacturing of heavy construction and mining equipment. 

A strong free cash flow that comfortably covers its dividend payments makes Caterpillar a secure investment opportunity. The recent dividend hike brings quarterly payouts to $1.30 per share.

The company’s recent dividend increase further demonstrates its ability to generate shareholder value through challenging economic conditions, solidifying its status as a resilient dividend stock.

Medtronic (MDT)

Medtronic continues to assert its dominance as a top player in the medical devices industry, displaying a strong financial foundation with a remarkable dividend growth history. 

This year Medtronic bumped its quarterly dividend to $0.70 per share on the heels of a whopping 14% increase in free cash flow to $5.2 billion for the fiscal year. 

The company’s extensive patent portfolio consists of critical healthcare technologies ranging from insulin pumps to cardiac stents, underscores its widespread influence in healthcare settings globally. 

This extensive reach and continuous innovation drive its ability to return substantial capital to shareholders, making it a reliable pick for dividend investors.

International Business Machines (IBM)

IBM was once a titan in the tech industry – while it’s had its troubles over the years, it remains a consistent dividend payer with 29 annual dividend increases. The company slightly increased its quarterly dividend this year to $1.67 per share.

While it navigates through sectors where it has fallen behind rivals, IBM’s long history of dividend payments – stretching back to 1916 – shows its resilience and commitment to maintaining investor confidence through regular, reliable dividends.

Comcast (CMCSA)

Despite challenges in its Peacock streaming service and a cautious market sentiment reflected in its stock trading below the estimated fair value, Comcast has consistently demonstrated its financial prowess and earned a spot on our list of the best dividend-paying stocks this year.

Comcast has managed to sustain and grow its financial health through a strategy focused on maximizing revenue per customer, even at the cost of modest customer losses. We believe the market has been too hard on this stock, and it could rebound this year with a few more earnings beats – offering capital growth potential alongside regular dividends.

The company’s dedication to enhancing shareholder returns is undeniable in looking at its history of dividend increases, with an average annual increase of 15%. The current dividend yield sits at 3.05%.

Brown-Forman (BFB)

As a leading name in the spirits industry, Brown-Forman has maintained a 40-year dividend increase streak due to the enduring popularity of brands like Jack Daniel’s and Finlandia. Dividends have been paid without problem for nearly 80 years now.

The non-voting BF.B shares offer investors a share in the company’s profits and a steadily growing dividend, which was last raised by 6% in November 2023. The dividend is only $0.22 per share, but it’s a fairly safe opportunity. 

Church & Dwight (CHD)

Last but not least on our list of the best dividend stocks to buy and hold in 2024 we have Church & Dwight – which you may not be familiar with. However, you have probably used the company’s products which range from Arm & Hammer to OxiClean.

The company has been a household name since 1846 but was just recently introduced to the S&P 500 index in 2015. Through its strong portfolio of widely recognized consumer staples, the company has managed to increase its dividends for 28 years consecutively. 

It just recently lifted its dividend in February of this year showcasing continued financial health alongside a dedication to rewarding shareholder loyalty. The dividend is fairly modest at just $0.28 per share, but the company hasn’t missed a payout in more than 123 years!

Tips on Investing in the Best Dividend-Paying Stocks

There you have it – all the best dividend-paying stocks in 2024. Each of these has its place in your portfolio whether you’re trying to fine-tune your retirement asset allocation or you simply want to earn supplemental income for the present day.

Like we said from the start though, having an idea of which stocks to buy is just one piece of the puzzle. So before we wrap this guide up, here are some tips on how to invest in blue chip stocks.

Determine Your Goals With Dividend Investing

First things first – why are you looking for the best dividend stocks? Are you trying to buy and hold as a young person preparing for retirement? Or, are you wondering where to put retirement money after retirement?

For stable, long-term growth, you’ll narrow your focus to companies with a record of consistently increasing their dividends, as they often reinvest their profits to fuel growth. On the other hand, those looking to earn income during retirement will prioritize the highest dividend stocks 2024.

Find Stocks That Support Those Goals

Actually finding stocks is fairly easy in this day and age thanks to free stock research sites like VectorVest. We’ve created this resource on the best dividend-paying stocks to point you in the right direction, but there are other tactics you can employ. 

Use financial news sources, investment research platforms, and dividend-focused investment newsletters to find stocks known for their dividend reliability and growth.

We’ll show you what a difference the best stock analysis app can make in your stock trading system in just a few moments. VectorVest is the best stock app for Android or iPhone stocks app.

We recommend you stick with companies in sectors known for dividend stability such as utilities or consumer goods. Many of the best dividend stocks to buy and hold fall under this umbrella.

However, if you’re looking for a better balance of long-term capital gains and steady dividend payouts, consider sectors with growth potential like technology, which has seen an increasing trend in dividend payouts.

Analyze Opportunities

So you’ve got a list of the best dividend stocks 2024 – great! You still need to validate these opportunities before you plunge into them, though. Here is how to analyze a stock before buying:

  • Dividend Yield and Growth: The dividend yield has to be sustainable with growth potential. A very high yield might be enticing, but it can also be a red flag for financial instability.
  • Payout Ratio: The payout ratio (the percentage of earnings paid to shareholders in dividends) has to be sustainable, too. Typically, a payout ratio below 60% is seen as safe, though this can vary by industry.
  • Free Cash Flow: Look for companies with strong free cash flow as it indicates the ability to continue paying dividends in the road ahead. Dividends are cut when cash flow falls.

 

Like we said, you can streamline much of this by leveraging the best stock picking app, VectorVest. It does the heavy lifting and eliminates guesswork and uncertainty so you can win more trades.

Learn more about how to do fundamental analysis of stocks in our blog, including how to combine fundamental and technical analysis.

Determine Your Position Size

Calculate how much of your portfolio should be invested in dividend stocks based on your risk tolerance and investment horizon. A diversified portfolio might include 20-40% in dividend stocks, but this depends on individual circumstances.

Find Your Entry

Whether you’re buying dividend vs growth stocks, timing is everything in the stock market. Look for opportunities when stocks are undervalued relative to their historical performance, sector performance, and the broader market.

Be sure to keep an eye on economic indicators and market trends that might affect stock prices, such as interest rate changes, which can influence dividend stock prices inversely.

You should also use the best stock indicators that signal it’s time to buy rather than playing the guessing game. Again – VectorVest facilitates effortless market timing through an intuitive, proprietary stock-rating system. More on that later.

Collect Dividends and Reinvest

Set up a Dividend Reinvestment Plan (DRIP) to automatically reinvest dividends. This takes advantage of compounding and increases your investment value over time without additional out-of-pocket expenses.

Reinvesting dividends can also help you purchase more shares at lower prices during market dips, bolstering your portfolio’s yield and value.

Monitoring Positions Over Time

We’ve said this a few times now, but the best dividend-paying stocks today might not be the top contenders 6 months from now. 

Conduct regular performance reviews and see which stocks are holding you back, and which stocks you may not have considered in the past offer a compelling value proposition now.

Stay informed about changes in corporate governance, regulatory changes, or sector dynamics that could impact your investments. You should also keep track of financial statements, dividend announcements, and analyst ratings for your investments.

Successfully Trading the Best Dividend-Paying Stocks Becomes Effortless With VectorVest!

VectorVest is a proprietary stock rating system that tells you what to buy, when to buy it, and when to sell it. It has outperformed the S&P 500 index by 10x over the past 20 years and counting, all while simplifying stock research and portfolio management.

The system consists of 3 ratings that give you all the insights you need to make calculated, confident decisions. These are relative value (RV), relative safety (RS), and relative timing (RT). Each sits on its own scale of 0.00-2.00 with 1.00 being the average, allowing for quick and easy interpretation. Just pick safe, undervalued stocks rising in price!

It gets even easier, though. Each of the 16,000+ stocks we track on a daily basis is backed by a buy, sell, or hold recommendation at any given time, allowing you to make decisions without any stress or uncertainty. 

Another reason it’s one of the best stock research sites is you never have to wonder where your next opportunity will come from thanks to our daily stock picks. 

You have access to a world of possibilities whether you’re looking for the best dividend stocks, falling knife stocks, the most volatile stocks, the best beginner stocks, the best swing trading stocks, the best stocks to day trade, and more!

We’re confident you’ll agree this is one of the best investment apps for beginners and seasoned traders alike, but don’t take our word for it. See it in action with a free stock analysis today.

Bringing Our Guide on the Best Dividend Stocks to Buy in 2024 to a Close

That does it for VectorVest’s guide to the best dividend-paying stocks! We hope you feel confident in your next steps as you begin trading the best dividend stocks in 2024. Each stock above shows resilience and commitment to shareholder returns, making them worthy picks for your portfolio.

Just remember to follow up with your own due diligence and assess dividend yield, growth history, and financial stability. Investing in companies with a consistent track record of increasing dividends offers not just potential income but also a possibility for portfolio growth.

You can learn more about what are dividend stocks in our blog with resources on topics such as how often do dividend stocks pay, how to buy the dip, when to cut losses, the best time frame for swing trading, technical analysis vs fundamental analysis, swing trading vs day trading, and more.

Otherwise, transform your trading strategy for the better today with VectorVest’s comprehensive analysis tools to make informed decisions and confidently manage your investments. Tap into the potential of dividend stocks to secure your financial future!

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