The Smartest Dividend Stocks to Buy Right Now
Investing in dividend-paying stocks is a strategy that can lead to impressive financial returns. Particularly, stocks that consistently increase their dividends have historically provided superior performance for investors. According to research from Ned Davis Research and Hartford Funds, dividend growers have returned an average annualized total return of 10.2% over the past 50 years, significantly outperforming companies with fixed or no dividends.
Among the outstanding dividend stocks to consider are ExxonMobil, Agree Realty, and Kimberly-Clark. These companies have established a solid track record of increasing their dividends, making them attractive options for investors looking to build a reliable income stream.
ExxonMobil (NYSE: XOM)
ExxonMobil has a remarkable history of increasing its dividend for 43 consecutive years. Currently, the dividend yield stands at 3.5%. For investors, a $1,000 investment would yield approximately $35 annually, a figure projected to grow as the company expands its profitability. ExxonMobil’s ambitious 2030 plan includes generating $25 billion in additional earnings, supported by strategic cost savings and investments in high-margin assets.
Agree Realty (NYSE: ADC)
As a real estate investment trust (REIT), Agree Realty focuses on acquiring income-producing retail properties. With over 2,600 freestanding properties leased to robust retailers like Walmart and Tractor Supply, the company enjoys a predictable rental income stream. Agree Realty has consistently grown its dividend at an annualized rate of 5.3% over the last decade, currently offering a monthly dividend yield of 4.3%. Its ongoing expansion strategy positions it well for continued growth in dividends.
Kimberly-Clark (NASDAQ: KMB)
Kimberly-Clark stands out as a Dividend King, having paid dividends for 91 straight years and increased them for 53 consecutive years. The company enjoys a current yield of 5%. With a portfolio of leading consumer brands, including Huggies and Kleenex, Kimberly-Clark benefits from resilient revenue growth, which supports its dividend payments. The planned acquisition of Kenvue, expected to be finalized in 2026, is anticipated to enhance shareholder value significantly.
Conclusion
ExxonMobil, Agree Realty, and Kimberly-Clark not only boast impressive dividend histories but also exhibit strong prospects for future growth. Investing in these dividend stocks can potentially turn $1,000 into a valuable income source over time, making them worthy additions to your portfolio.
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