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Dividend Stocks

Get paid to hold

The Income Side of the Market

A dividend is a cash payment a company sends to its shareholders, usually quarterly. Some companies pay none and reinvest every dollar back into growth (Alphabet did this for two decades; Berkshire still does). Others — particularly mature, stable businesses — pay out substantial portions of their earnings. Reinvested dividends have historically accounted for roughly 40% of the total return of the S&P 500. Below are four ways to think about dividend investing.

The names below are well-known examples, not investment advice. Always check the current yield, payout ratio, and dividend history before investing.

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High-Yield Dividend Stocks

  • Verizon Communications VZ
    Telecom oligopoly with one of the highest yields in the S&P 500.
  • AT&T T
    Another telecom giant — high yield, slow-growth profile.
  • Altria Group MO
    Tobacco. Famously high yield, controversial sector.
  • Pfizer PFE
    Big pharma. Yield expanded after post-pandemic share price decline.
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Dividend Aristocrats (25+ years of increases)

  • Coca-Cola KO
    60+ consecutive years of dividend increases.
  • Johnson & Johnson JNJ
    60+ year streak. The classic defensive dividend pick.
  • Procter & Gamble PG
    65+ year streak. Owns Tide, Pampers, Gillette, and more.
  • PepsiCo PEP
    50+ year streak.
  • McDonald's MCD
    45+ year streak.
  • 3M MMM
    60+ year streak, though recently challenged by litigation.
  • Walmart WMT
    50+ year streak.
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REITs (Real Estate Investment Trusts)

  • Realty Income O
    The "Monthly Dividend Company" — net-lease commercial real estate.
  • Prologis PLD
    Largest industrial / logistics REIT in the world.
  • American Tower AMT
    Cell tower REIT — owns the wireless backbone.
  • Public Storage PSA
    Self-storage REIT.
  • Equinix EQIX
    Data center REIT — the digital infrastructure landlord.
  • Welltower WELL
    Healthcare and senior-living REIT.
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Monthly Dividend Stocks

  • Realty Income O
    Pays monthly. The most famous monthly dividend stock.
  • Main Street Capital MAIN
    Business development company — monthly distributions.
  • STAG Industrial STAG
    Industrial REIT paying monthly.
  • LTC Properties LTC
    Senior-living REIT, monthly dividends.
Related: Dividend ETFs → Public Companies → REITs / Real Estate → By Market Cap →
Questions people ask

Common Questions

What is a dividend?

A share of profit paid out to shareholders, usually quarterly. It is cash in hand rather than a gain you only realise when you sell.

What is a Dividend Aristocrat?

A company that has raised its dividend every year for at least 25 consecutive years. The streak is treated as evidence of durability, because maintaining it through recessions is hard.

Does a high yield mean a good investment?

Not on its own. A yield can be high because the share price has fallen, which may signal trouble rather than value, and dividends can be cut. Substox is an educational resource, not a licensed financial adviser, and nothing here is investment advice.