When investing Investors have a wide range of choices available in the US market around high-dividend stocks. This article presents some of the options for those who are interested in exploring high dividend stocks in their portfolio. This includes companies that have increased their annual dividends, and stocks with high dividend yields.
9 High-Dividend Stocks in 2023 + How to Invest in Them
Table of Contents
What are dividend stocks?
Dividend stocks are those that regularly distribute a portion of the company’s profits to investors. In the United States, some dividend paying companies may increase, decrease, or stop paying their dividends, while some dividend stocks pay a relatively consistent amount to investors every quarter allowing investors to establish a cash flow similar to an annuity. It is generally observed that companies that offer dividends are often well-established, indicating long-term stability for the company.
Build and diversify your portfolio with dividend stocks
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9 high-dividend stocks
| Ticker | Company Name | Dividend yield | Market Cap | Industry |
|---|---|---|---|---|
| ARCC | Ares Capital | 10.41% | $9.94B | Financial |
| MO | Altria Group | 8.26% | $82.39B | Consumer Goods |
| ET | ET | 7.79% | $39.95B | Industrial Goods |
| HESM | Hess Midstream Partners | 7.65% | $6.82B | Utilities |
| EOG | EOG Resources | 7.30% | $69.94B | Utilities |
| XRX | Xerox | 6.89% | $2.30B | Technology |
| T | AT&T | 5.57% | $141.31B | Technology |
| IBM | International Business Machines | 5.15% | $115.91B | Technology |
| CVX | Chevron | 3.35% | $325.13B | Utilities |
*All dividend and yield information in the chart presented above is as of April 19, 2023 and shows the list of companies with a market cap of over 1B that had the highest dividend yield as off April 19, 2023. This chart is provided solely for informational purposes and should not be considered investment advice.
Build and diversify your portfolio with dividend stocks
Get a regular stream of income in the form of dividend payments on Public
Why Invest in Dividend Stocks?
There are several reasons why investors may choose to invest in dividend stocks. One of the main reasons is the steady stream of income they provide. Dividend stocks may provide a reliable source of passive income for investors. This is often beneficial for retirees or those looking to supplement their current income.
Dividend stocks are popularly known to offer a degree of stability and predictability in an investor’s portfolio. Because dividend-paying companies are often well-established and financially stable, they may be less prone to market fluctuations than other types of stocks. This can help investors weather market volatility and achieve their long-term financial goals.
Finally, dividend stocks can be a way to participate in the growth of a company while also receiving income, if the dividends paid out by a company increase. This may allow investors to benefit from both the income generated by the stock and the potential for capital appreciation.
How to invest in dividend stocks?
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Create a free brokerage account
Before you open a free brokerage account, it’s best to research and compare your options. It’s free to join Public, and unlike other brokerages, we don’t participate in payment for order flow (PFOF)—which means we don’t sell your trades to market makers or third parties. Instead, we route all orders directly to the exchanges and other execution venues. Being PFOF-free allows us to get you the best price possible for your trades, not just a slightly better one.
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Fund your account
There are many ways to fund a brokerage account, most commonly by linking a bank account to deposit and withdraw settled cash. You can also use a debit card, check, or wire transfer to fund your account. At Public, we have partnered with Plaid, the nation’s largest bank connection provider, to make funding your account easy. You also have the option to set up recurring deposts and make investing even more of a routine.
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Explore Dividend Stocks
Before investing in any dividend-paying stock, it’s important to do your research. Look for companies with a history of paying consistent dividends and a stable financial position. You can find this information on the company’s website or on financial news websites. Alternatively, you can use Public Premium, which offers company-specific insights and metrics from leading analysts that can help investors decide which dividend stocks may be appropriate for them.
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Buy Stocks
It’s easy to invest in dividend stocks on Public. Once you’ve determined your investment candidates, simply tap the assets and choose how much you’d like to buy. Public offers fractional investing, so you can invest in dividend stocks and ETFs with any dollar amount.
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Automatically reinvest dividends
To set up automatic dividend reinvestment on Public, simply open your Account Settings and navigate to “Dividend Reinvesting” under the Investing section. There, you’ll have two options: keep your dividends in your Public account balance or automatically invest them into the company that paid them out.
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Create your own Dividend plan with Investment Plans
On Public, you can automate your dividend investing strategy with a personalized Investment Plan to consistently grow your dividend-paying positions. Add up to 20 dividend-paying stocks or ETFs to your self-created Plan, and decide how much and how often you want to invest in your plan. Grow your portfolio with daily, weekly, biweekly, or monthly contributions, and choose whether you’d prefer to evenly distribute funds, or create a custom allocation that supports your investing strategy.
If you need help narrowing down your selection, we’re soon launching pre-created Investment Plans that will allow you to gain exposure to a mix of dividend stocks and ETFs curated by domain experts and members of the Public community.
Build and diversify your portfolio with dividend stocks
Get a regular stream of income in the form of dividend payments on Public
What are the benefits of investing in Dividend stocks?
Investing in dividend stocks can provide a number of benefits, including:
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Passive income: Dividend-paying stocks provide a reliable stream of passive income, which can be especially valuable for investors who are retired or looking for an additional source of income.
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Stability and predictability: Dividend-paying companies are often well-established and financially stable, which can help investors weather market volatility and achieve their long-term financial goals.
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Diversification: Dividend stocks can be a valuable addition to a diversified investment portfolio, helping to reduce risk and increase potential returns.
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Potential for capital appreciation: While dividend stocks are known for their reliable income stream, they can also offer the potential for capital appreciation over the long term.
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Inflation hedge: Dividend payments can help to offset the impact of inflation over time, as companies may increase their dividend payouts to keep up with rising prices.
What are the risks of investing in Dividend stocks?
Some potential risks of investing in dividend stocks include
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Reduction or suspension of dividends: Companies may choose to reduce or suspend dividend payments due to changes in their financial position, economic conditions, or other factors. This can result in a loss of income for investors.
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Market volatility: Like all stocks, dividend-paying stocks are subject to market volatility, which can cause their prices to fluctuate significantly in the short term.
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Interest rate risk: When interest rates rise, investors may shift their focus away from dividend-paying stocks to other investments that offer higher yields, causing the price of dividend-paying stocks to decline.
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Industry-specific risks: Dividend-paying stocks in certain industries, such as energy or utilities, may be more sensitive to changes in commodity prices or government regulations, which can impact their financial performance and dividend payouts.
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Company-specific risks: Individual companies may experience financial difficulties, such as declining revenue or profitability, that can affect their ability to pay dividends or maintain their stock price.
Conclusion
In conclusion, dividend-paying stocks can be an excellent addition to any investment portfolio, offering stable and reliable passive income, diversification, and the potential for capital appreciation. However, as with any investment, there are risks to consider, including dividend reductions or suspensions, market volatility, and industry-specific or company-specific risks.
Despite these risks, investing in dividend-paying stocks can be a smart way to generate income and build long-term wealth. At Public, we believe that investing should be accessible and easy for everyone. That’s why we offer a user-friendly platform that allows you to buy and sell stocks, ETFs, Treasuries, crypto, and alternative assetsall in one place. Sign up today and continue your journey toward financial freedom.
