Investing in dividend stocks is a popular strategy for generating regular income, especially in an unpredictable stock market. As we move into 2023, it’s crucial to identify the best dividend stocks that offer both attractive yields and strong underlying businesses. Here are some of the top picks for the year.
Darden Restaurants
Darden Restaurants is a company that boasts a dividend yield of at least 3%, enjoys growth prospects, and has recently acquired another prominent restaurant chain, Ruth’s Chris Steak House. This makes it an attractive option for dividend investors.
Becton Dickinson
Becton Dickinson is a medical equipment and supply firm that’s been increasing its dividend for over 25 years. This consistency and the company’s position in the healthcare sector make it a solid choice for dividend investors.
Stanley Black & Decker
Stanley Black & Decker has boosted its dividend for 55 years in a row. The stock price is currently undervalued, which could mean it’s a good buying opportunity for investors.
Janus Henderson
Janus Henderson, an asset manager that oversees $310 billion in assets under management, is trading at around a 30% discount, making it an attractive investment option. The company’s large asset base and management expertise could lead to strong performance and consistent dividends.
Automatic Data Processing (ADP)
ADP is a payroll giant with a wide economic moat, strong brand, high quality, and pricing power. It’s well-managed and generates robust profit margins and return-on-equity. These factors make it a strong contender for dividend-focused investors.
Conclusion
Investing in dividend stocks can be a great way to generate regular income. By focusing on high-quality stocks with strong cash flows and consistent dividends, you can build a portfolio that provides a steady income stream and potential for capital growth.
