10 Best Dividend Stocks of 2023: Riding the Income Wave
Reviewed byInvesting in dividend stocks can be a smart way to earn regular income and experience less market volatility. But remember, high dividend yields don’t always mean better stocks. The sustainability of dividends matters. Look at the payout ratio – it shows how much income a company gives back as dividends. A ratio over 100% can be a red flag, signaling potential trouble in maintaining dividends. Despite a company’s healthy payout ratio, that dividends are never guaranteed. The recent pandemic underscored this as a number of historically stable dividend-paying companies had to suspend or reduce dividends to strengthen their financial position.
PRO TIP:
For selecting top dividend stocks, consider key indicators beyond past performance, focusing on both current stability and future potential. We use this approach for our top picks:
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- Consistent Dividend Growth: Look for stocks with at least 10 years of consecutive annual dividend increases.
- Future Earnings Potential: Consider expected earnings growth in the next two years.
- Healthy Payout Ratios: Seek companies with payout ratios below 100%.
- Robust Dividend CAGR: Aim for a minimum of 7.5% dividend growth CAGR over the last decade.
- Steady Revenue Growth: Target at least 5% revenue growth CAGR over the past five years.
- Valuation Measures: Prefer stocks with a forward PE ratio under 35 and a current ratio above 1.
How Koyfin Helps: Screener
The Koyfin Screener allows scanning through more than 100K global securities using 5,900+ filter criteria. Set filters as mentioned in our Pro Tip, like dividend growth rates or payout ratios to refine your search.
10 Best Dividend Stocks of November 2023
Name | Ticker | Dividend Yield | 10Y Dividend CAGR |
|---|---|---|---|
Mastercard Incorporated | MA | 0.58% | 32.75% |
Tractor Supply Company | TSCO | 2.08% | 26.17% |
Pool Corporation | POOL | 1.33% | 19.88% |
Visa Inc. | V | 0.85% | 18.33% |
Landstar System Inc. | LSTR | 1.96% | 16.94% |
Intuit Inc. | INTU | 0.68% | 16.46% |
Hormel Foods Corporation | HRL | 3.38% | 13.24% |
NIKE Inc. | NKE | 1.28% | 12.58% |
Microsoft Corporation | MSFT | 0.81% | 11.45% |
Church & Dwight Co. Inc. | CHD | 1.21% | 8.14% |
*Data as of November 13th, 2023
Investing in dividend stocks isn’t just about choosing the right ones; it’s crucial to keep monitoring them regularly. You need to stay informed about overall market trends as they can affect your stocks’ performance. Also, pay attention to any changes in the dividend policies of the companies you’ve invested in. This helps assess their financial stability.
Track Equity Metrics in Koyfin Watchlists
Visa Inc. (V)
Visa Inc. is a leader in payment technology, growing its business by offering more than just card services; it now includes advanced payment networks for its customers. They use the latest technology to make their services easier to use and available globally. Visa+ is their newest service, making person-to-person payments simpler and more accessible across different payment networks. You can find a more comprehensive breakdown of Visa’s dividends here.
Key Investment Insights for Visa Inc. (V):
Dividend Yield (Ind):
0.85%
Dividend Per Share:
$1.87
Dividend Streak:
14 years
Payout Ratio:
21.72%
Dividend Per Share CAGR (10Y annual):
18.33%
Nike Inc. (NKE)
Nike Inc., renowned for sports apparel and equipment, is using its innovation to enhance athletes’ experiences and grow worldwide. Growth is driven by new ideas from the LeBron James Innovation Center, a partnership with Adobe for personalized customer experiences, and expanding in digitally-focused markets like Korea, sports-loving Central and South America, and populous regions like Southeast Asia, India, and China. Access a detailed analysis of Nike’s dividends here.
Key Investment Insights for Nike Inc. (NKE):
Dividend Yield (Ind):
1.28%
Dividend Per Share:
$1.32
Dividend Streak:
22 years
Payout Ratio:
39.68%
Dividend Per Share CAGR (10Y annual):
12.58%
Pool Corp. (POOL)
Pool Corporation, a top distributor of pool supplies and leisure products, excels with a wide product selection and a focus on customers. They’ve opened 8 new sales centers this year, outpacing competitors. Their key strategy includes POOL360, an increasingly popular tool among dealers for its efficiency and benefits. They also launched the POOL360 water test app, an advanced online tool helping independent retailers to get ideal water chemistry and boost sales of their chemical products. More details on Pool Corporation’s dividends here.
Key Investment Insights for Pool Corp. (POOL):
Dividend Yield (Ind):
1.33%
Dividend Per Share:
$3.8
Dividend Streak:
13 years
Payout Ratio:
20.12%
Dividend Per Share CAGR (10Y annual):
19.88%
Microsoft Corp. (MSFT)
Microsoft Corporation is enhancing its cloud and AI capabilities, with Azure gaining market share in AI tasks. Azure AI services are used by major clients like IKEA and Mercedes-Benz. The company is also improving databases and analytics with Microsoft Fabric, while tools like Azure AI Studio, GitHub Copilot, and Power Automate are gaining popularity. Discover more details on Microsoft Corporation’s dividends here.
Key Investment Insights for Microsoft Corp. (MSFT):
Dividend Yield (Ind):
0.81%
Dividend Per Share:
$2.72
Dividend Streak:
18 years
Payout Ratio:
27.36%
Dividend Per Share CAGR (10Y annual):
11.45%
Mastercard Inc. (MA)
Mastercard Incorporated, known globally for payment processing, focuses on three areas: Payments, New Networks, and services in Data & Services, Cybersecurity, and Intelligent Services. This strategy supports their continued growth. They show commitment to innovation with ‘Labs as a Service’, providing customers access to Mastercard’s advanced tools and techniques. More details on Mastercard’s dividends here.
Key Investment Insights for Mastercard Inc. (MA):
Dividend Yield (Ind):
0.58%
Dividend Per Share:
$2.04
Dividend Streak:
12 years
Payout Ratio:
19.16%
Dividend Per Share CAGR (10Y annual):
32.75%
Intuit Inc. (INTU)
Intuit Inc., excelling in financial management and compliance, serves clients from freelancers to small and medium businesses (SMBs). Operating in four segments – Small Business & Self-Employed, Consumer, Credit Karma, and ProConnect – Intuit offers tools like TurboTax and personalized advice via Credit Karma. Innovations such as TurboTax Live are expected to boost customer numbers by 13% this year, while acquisitions like Credit Karma and Mailchimp significantly improve Intuit’s consumer insights. Take a deep-dive into Intuit’s dividends here.
Key Investment Insights for Intuit Inc. (INTU):
Dividend Yield (Ind):
0.61%
Dividend Per Share:
$3.12
Dividend Streak:
10 years
Payout Ratio:
37.29%
Dividend Per Share CAGR (10Y annual):
16.46%
Landstar System, Inc. (LSTR)
Landstar System, Inc. specializes in various transportation services, including truckloads, air, and ocean freight, serving industries like automotive, retail, and electronics. Benefiting from the growing cross-border market and near-shoring trends, Landstar maintains a strong position, even with potential competition from the rail sector. Take a look into Landstar System’s dividends here.
Key Investment Insights for Landstar System, Inc. (LSTR):
Dividend Yield (Ind):
1.96%
Dividend Per Share:
$1.1
Dividend Streak:
10 years
Payout Ratio:
26.84%
Dividend Per Share CAGR (10Y annual):
16.94%
Tractor Supply Comp. (TSCO)
Tractor Supply Company, a retailer for rural lifestyles in the U.S., is growing by opening new stores and acquiring Orscheln. Specializing in livestock health and agricultural tools, they’re attracting new customers, especially in poultry. Innovations in store layouts and successful Garden Centers show their focus on improving customer experience and cost-effectiveness. Check out the dividend information for Tractor Supply Company right here.
Key Investment Insights for Tractor Supply Comp. (TSCO):
Dividend Yield (Ind):
2.08%
Dividend Per Share:
$3.68
Dividend Streak:
12 years
Payout Ratio:
37.62%
Dividend Per Share CAGR (10Y annual):
26.17%
Hormel Foods Corp. (HRL)
Hormel Foods Corporation, a global meat and food producer, works across segments like Grocery Products, Refrigerated Foods, and Jennie-O Turkey Store. They’ve enhanced margins through cost management and strategic pricing, addressing inventory inefficiencies. Hormel is rejuvenating the Planters brand with new products and making significant progress with its Go Forward operating model. Check out the details of Hormel Foods’ dividends here.
Key Investment Insights for Hormel Foods Corp. (HRL):
Dividend Yield (Ind):
3.38%
Dividend Per Share:
$1.04
Dividend Streak:
51 years
Payout Ratio:
55.78%
Dividend Per Share CAGR (10Y annual):
13.24%
Church & Dwight Co., Inc. (CHD)
Church & Dwight Co., Inc., known for household and personal care products, ranges from baking soda goods to animal productivity supplements. They’ve gained market share through innovative products and smart acquisitions like THERABREATH and Hero. Their strategy of focusing on both premium and value brands has increased consumer demand and case-fill rates, leading to significant revenue growth. Check out the details of Church & Dwight’s dividends right here.
Key Investment Insights for Church & Dwight Co., Inc. (CHD):
Dividend Yield (Ind):
1.21%
Dividend Per Share:
$1.05
Dividend Streak:
12 years
Payout Ratio:
61.61%
Dividend Per Share CAGR (10Y annual):
8.14%
How to Find Top Dividend Stocks
Step 1: Sign Up to Koyfin for Free. Register an account and get started; no credit card required.
Step 2: Create a Screener. Head to ‘My Screens’, create a new screener and give it a name.
Step 3: Define your Investment Universe.
Step 4: Add Filter Criteria. We have thousands of data points you can add to a screener.
Step 5: Create Screen. When you are happy with your screener, give it a name, hit save and apply. You can also save this screener output as a watchlist too.
How to Create a Watchlist for Top Dividend Stocks
Step 1: Sign Up to Koyfin for Free. Register an account and get started; no credit card required.
Step 2: Create a Watchlist. Head to ‘My Watchlists’, create a new watchlist and give it a name.
Step 3: Add Tickers. Click ‘Add Ticker’, then ‘Import Securities’, then copy and paste the below list of tickers.
V, NKE, POOL, MSFT, MA, INTU, LSTR, TSCO, HRL, CHD
Step 4: Customize Columns. Hit the ‘Columns’ icon to add and remove columns from your watchlist table.
We have thousands of data points you can add to a watchlist, including fundamental data, price and returns data, analyst estimates, percentile ranks, security information, portfolio tools, and the ability to create your own formulas and labels.
Now your watchlist is ready, and you can use the rest of the Koyfin terminal to track and analyze these stocks.
FAQ
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What are dividend stocks?
Dividend stocks are shares in companies that regularly distribute a part of their profits to shareholders. These routine payouts, either as per-share values or as a percentage of the current market price (known as dividend yield), signify the company’s financial stability. They’re often termed as ‘dividend-paying stocks’.
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How do I find dividend paying stocks?
You can sift through all global stocks and find dividend-paying stocks using the Koyfin screener. In the screener, you can specify criteria such as dividend yield, payout ratio and dividend growth.
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How can you find dividends per share?
With Koyfin, finding the dividend per share is simple. Choose the company’s ticker, go to ‘Financial Analysis’, click on ‘Income Statement’, and look under ‘Per Share Items’ for the dividend per share.
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How do dividend stocks work?
Dividend stocks distribute a portion of company profits to shareholders periodically. The board of directors determines the per-share payout. The dividend yield, a key indicator of the best dividend stocks, is calculated by dividing the annual dividend by the stock’s market price. These dividends can be reinvested in more shares or used as income.
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Are these the best dividend stocks?
The ‘best’ dividend stocks consistently offer reliable yields and regularly raise their annual dividend per share. The optimal choice for you hinges on these factors aligning with your personal investment strategy, objectives, and timeline.
Editorial note
Our insights are derived solely from historical information and analyst predictions, employing an impartial approach. Please note that our articles do not serve as financial guidance.