As we enter 2023, investors are searching for reliable dividend stocks that can provide a steady income stream. We’ve compiled a list of the top 5 dividend stocks for 2023 that offer a mix of solid yields and potential for growth. These stocks include well-established companies from various industries, such as energy, consumer health, real estate, telecommunications, and beverages.
Chevron, a multinational energy company, is involved in almost every aspect of oil and natural gas, including exploration, production, refining, transportation, and marketing. The company offers a solid dividend yield of 3.25%. With supply shrinking due to inflation, the war in Ukraine, and OPEC production cuts, energy producers like Chevron have been able to charge premiums for their products. Investors who believe that oil and gas prices will remain high may find Chevron an attractive option.
Johnson & Johnson (JNJ)
Johnson & Johnson, a consumer health and medical company, has consistently increased its dividend annually for over 50 years. With a dividend yield of 2.6%, the company’s stock performance in 2022 outpaced the market average. This Dividend King remains a reliable choice for dividend investors.
Realty Income Corporation (O)
Realty Income Corporation, a real estate investment trust (REIT), invests in single-tenant commercial properties across the U.S., U.K., and Spain. As a REIT, it is required to pay out 90% of its taxable profits as dividends, resulting in a robust 4.65% dividend yield. Investors who believe that inflation will ease and interest rate increases will slow or reverse may find Realty Income Corporation a good investment.
Verizon, a major telecommunications company, offers an enticing 6.3% dividend yield. After a difficult 2022, with its stock price falling by about 25%, Verizon could present a strong buying opportunity for investors. The telecommunications industry’s high barriers to entry and essential nature make Verizon a relatively steady pick with solid income through dividends.
Coca-Cola, a globally popular beverage company, has a dividend history spanning 61 years of consecutive increases. The company currently offers a dividend yield of 2.81%. However, its high P/E ratio of 27.43 may give investors pause, as Coca-Cola’s strong performance in 2022 might not make it the best deal compared to other options.
In conclusion, these top 5 dividend stocks for 2023 offer a mix of high-yield opportunities and potential for growth. Diversifying your portfolio with these stocks can help provide a steady income stream while mitigating risks associated with market fluctuations.