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12 Most Reliable Dividend Stocks To Buy

In this article, we discuss 12 most reliable dividend stocks to buy. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read 5 Most Reliable Dividend Stocks To Buy

During times of economic turmoil, investors often shift their attention toward dividend stocks, which provide regular income streams. The reliability of these stocks depends on factors such as their historical growth performance, cash flow stability, payout ratios, and overall financial health reflected in their balance sheets. Among these, dividend growth emerges as the most important factor when considering investing in dividend stocks. Moreover, historical returns have shown the outperformance of dividend growth strategies over an average dividend stock. According to a report by S&P Dow Jones Indices, the S&P 500 Dividend Aristocrats, which tracks the performance of companies with at least 25 consecutive years of dividend growth, outperformed the broader market with lower volatility over the long run. The report also mentioned that the index demonstrates its capacity to offer downside protection through its upside and downside capture ratios. The index surpassed the performance of the S&P 500 in down months 69.34% of the time and in up months 43.61% of the time.

Dividend stocks that offer both a substantial yield and a track record of consistent dividend growth strike a balance between distributing dividends to shareholders and reinvesting capital into future growth endeavors. Nuveen reported FactSet data which showed that dividends per share rose by 5% in the S&P 500, and it is anticipated that there will be similar growth in 2024 based on consensus estimates. In addition to this, over 325 companies within the index either raised their dividends per share or introduced a dividend over the past year.

As mentioned earlier, the payout ratio holds a significant importance when assessing the dependability of dividend stocks. Companies with high payout ratios may face challenges in future growth, which could jeopardize both stock price appreciation and dividend growth. Fortunately, the S&P 500’s dividend payout ratio remains below its long-term average. Consensus estimates also indicate an 11% growth in earnings per share for 2024, which should support attractive returns for shareholders. Moreover, companies are maintaining substantial cash reserves on their balance sheets, with cash totaling roughly $2 trillion as of September 2023, nearing the highest levels in two decades.

Though dividend stocks didn’t perform as well as the broader market in 2024, analysts have given a positive stance about dividend equities this year. Goldman Sachs has raised its forecast for dividend payouts in the S&P 500. The firm stated that there has been a surge in investors’ attraction towards dividend-paying stocks following Meta Platforms, Inc. (NASDAQ:META)’s recent announcement of its inaugural quarterly dividend. The firm’s analysts noted this heightened interest and consequently revised their forecast for the S&P 500’s dividend-per-share payout, increasing it from 4% to 6%. Another reason contributing to the optimism regarding dividends among Goldman’s team is the trend of major US corporations consistently exceeding Wall Street’s earnings expectations during the last quarter of 2023. Considering investors’ inclination toward dividend stocks, companies are steadily increasing their payouts. Goldman reported that since the beginning of 2024, 56 companies within the S&P 500 index have increased their dividends, with a median increase of 6%. Among these, financial firms and industrial companies, totaling 10 and nine respectively, have played a significant role in driving the overall increase.

Some of the best dividend stocks that have raised their dividends for decades and have strong balance sheets include The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and The Procter & Gamble Company (NYSE:PG). In this article, we will further take a look at reliable dividend stocks.

Daily newspaper economy stock market chart

Our Methodology:

For this article, we used a stock screener to identify dividend stocks that have raised their payouts for at least 15 consecutive years and had payout ratios of below 35% in 2023. Low payout ratios indicate that these companies have a robust cash position and are retaining a larger portion of their earnings rather than distributing them as dividends. Among this selection, we selected 12 companies with the lowest payout ratios and arranged them in ascending order based on their payout ratios in 2023. We also mentioned hedge fund sentiment around each stock according to Insider Monkey’s database as of Q4 2023. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).

12. Church & Dwight Co., Inc. (NYSE:CHD)

Payout Ratio in 2023: 34.7%

Church & Dwight Co., Inc. (NYSE:CHD) is an American consumer goods company known for producing a variety of household and personal care products. The company offers a quarterly dividend of $0.2838 per share, having raised it by 4.1% in February this year. This was the company’s 28th consecutive annual dividend hike, which makes CHD one of the best dividend stocks on our list. The stock has a dividend yield of 1.09%, as of March 11.

At the end of Q4 2023, 30 hedge funds tracked by Insider Monkey reported having stakes in Church & Dwight Co., Inc. (NYSE:CHD), compared with 33 in the previous quarter. The collective value of these stakes is over $1.05 billion. With over 7.2 million shares, Fundsmith LLP was the company’s leading stakeholder in Q4.

11. Lowe’s Companies, Inc. (NYSE:LOW)

Payout Ratio in 2023: 32.9%

Lowe’s Companies, Inc. (NYSE:LOW) is a prominent American home improvement retailer, that operates a chain of retail stores offering a wide range of products and services for home improvement, construction, maintenance, and decoration. The company has raised its dividends for 59 years in a row and currently offers a quarterly dividend of $1.10 per share. The stock has a dividend yield of 1.82%, as of March 11. With a payout ratio of 32.9% in 2023, LOW is one of the most reliable dividend stocks on our list.

The number of hedge funds having stakes in Lowe’s Companies, Inc. (NYSE:LOW) grew to 68 in Q4 2023, from 63 in the previous quarter, according to Insider Monkey’s database. These stakes have a total value of over $3.7 billion.

10. Nordson Corporation (NASDAQ:NDSN)

Payout Ratio in 2023: 31.1%

Nordson Corporation (NASDAQ:NDSN) is an Ohio-based industrial technology company that specializes in precision dispensing equipment, adhesive dispensing systems, fluid management solutions, and related consumable products. The company declared a quarterly dividend of $0.68 per share on February 7, which was in line with its previous dividend. Overall, it maintains a 60-year streak of dividend growth, which makes NDSN one of the best dividend stocks on our list. The stock’s payout ratio in 2023 came in at 31.1% and it has a dividend yield of 1.03%, as recorded on March 11.

As of the close of Q4 2023, 19 hedge funds in Insider Monkey’s database owned stakes in Nordson Corporation (NASDAQ:NDSN), down from 21 in the preceding quarter. The collective value of these stakes is over $107.5 million. Among these hedge funds, Balyasny Asset Management was the company’s leading stakeholder in Q4.

9. Expeditors International of Washington, Inc. (NYSE:EXPD)

Payout Ratio in 2023: 27.5%

Expeditors International of Washington, Inc. (NYSE:EXPD) is a logistics and freight forwarding company. The company’s quarterly dividend comes in at $0.69 per share for a dividend yield of 1.14%, as of March 11. Its payout ratio in 2023 was recorded at 27.5%. Moreover, it holds a 29-year track record of dividend growth, which places EXPD on our list of the best dividend stocks.

At the end of December 2023, 23 hedge funds held investments in Expeditors International of Washington, Inc. (NYSE:EXPD), compared with 27 in the previous quarter, according to Insider Monkey’s database. These stakes are collectively valued at over $227.7 million.

8. Dover Corporation (NYSE:DOV)

Payout Ratio in 2023: 26.9%

An American multinational conglomerate, Dover Corporation (NYSE:DOV) currently offers a quarterly dividend of $0.51 per share and has a dividend yield of 1.19%, as of March 11. The company holds one of the longest dividend growth streaks in the market, spanning over 67 years. Its payout ratio in 2023 came in at an impressive 26.9%, which makes DOV one of the best dividend stocks on our list.

According to Insider Monkey’s database of Q4 2023, 21 hedge funds owned stakes in Dover Corporation (NYSE:DOV), the same as in the previous quarter. These stakes have a collective value of roughly $670 million. With nearly 2 million shares, Adage Capital Management was the company’s leading stakeholder in Q4.

7. The Sherwin-Williams Company (NYSE:SHW)

Payout Ratio in 2023: 26.16%

The Sherwin-Williams Company (NYSE:SHW) is an American manufacturer and distributor of paints, coatings, and related products. In February this year, the company raised its dividend by a significant 18.2% to $0.715 per share. This increase stretched the company’s dividend growth streak to 45 years, which makes SHW one of the best dividend stocks on our list. The stock’s dividend yield on March 11 came in at 0.84%.

Insider Monkey’s database of Q4 2023 indicated that 72 hedge funds owned stakes in The Sherwin-Williams Company (NYSE:SHW), up from 71 in the previous quarter. The collective value of these stakes is over $3.6 billion.

6. Archer-Daniels-Midland Company (NYSE:ADM)

Payout Ratio in 2023: 24.3%

Archer-Daniels-Midland Company (NYSE:ADM) ranks sixth on our list of the best dividend stocks with a dividend payout ratio of 24.3%. The global food processing and commodities trading company offers a quarterly dividend of $0.50 per share, growing it by 11.1% in January this year. This marked the company’s 51st consecutive year of dividend growth. As of March 11, the stock has a dividend yield of 3.65%.

Archer-Daniels-Midland Company (NYSE:ADM) was a part of 34 hedge fund portfolios at the end of Q4 2023, compared with 37 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of roughly $820 million.

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Disclosure. None. 12 Most Reliable Dividend Stocks To Buy is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

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As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

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One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
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The Hedge Fund Secret That’s Starting to Leak Out

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…