Are you looking for a safe and stable income stream? Dividend stocks are the perfect option to turn your investments into reliable income. Dividend-paying stocks provide regular cash payments that can be used for everyday expenses or to reinvest in other opportunities. With so many dividend stocks out there, it’s hard to know which will be the most reliable choice. To make things easier, here are 7 of the best dividend stocks to buy today:
| NEM | Newmont Mining | $54.13 |
| AZN | AstraZeneca | $65.99 |
| LMT | Lockheed Martin | $459.81 |
| CVX | Chevron Corporation | $187.79 |
| VALE | Vale | $19.30 |
| T | AT&T | $20.00 |
| WMT | Walmart | $142.21 |
These top picks offer long-term growth potential and steady dividends that will help you build a secure financial future. Investing in these dividend stocks is an easy way to create a dependable source of passive income.
Let’s discuss the reasons to be bullish on these dividend stocks to buy.
Newmont Corporation (NEM)
With inflation dropping and the potential for a recession in 2023, sentiment has changed from bearish to bullish for gold. One of the best dividend stocks to purchase is Newmont Mining (NYSE:NEM), as the firm stands to gain from rising realized gold prices.
One of the main reasons to enjoy the blue-chip stock is that Newmont has an investment-grade balance sheet. The business is well-positioned to generate healthy cash flows, and I anticipate dividend increases. NEM stock currently has a yield of 4.1%.
The operating cash flow for the first nine months of 2022 was $2.2 billion, according to Newmont. On account of the lower actual gold price, this was. OCF for the current year is probably going to be more than $4 billion.
With 96 million ounces in proven reserves, Newmont is also intriguing in the long run. Even if gold stays sideways, the asset base offers clear visibility of free cash flow.
AstraZeneca (AZN)
Source: Roland Magnusson / Shutterstock.com
Another appealing dividend stock to buy and hold is AstraZeneca (NASDAQ: AZN). The dividend yield on AZN stock is 1.4%, and a dividend increase in the upcoming years is clearly anticipated. The price of AZN stock has increased by 14.5% during the past year.
AstraZeneca announced a 37% increase in sales for the first nine months of 2022. The company anticipates low double-digit revenue growth because of a solid pipeline of medication candidates. AstraZeneca currently has 179 projects in the works.
The company’s concentration on a variety of therapy areas is another thing to take note of. Oncology, biopharmaceutical, and uncommon disorders are all included in this. The growth picture is favorable thanks to a sizable addressable market and a global presence.
AstraZeneca reported an operating cash flow of $7.4 billion during the last 12 months. OCF is anticipated to pick up speed as income increases. This puts the business in a position to make significant investments in R&D. There is also plenty of room for dividend growth.
Lockheed Martin (LMT)
Lockheed Martin (NYSE:LMT), with a forward price-earnings ratio of 16.4, is a desirable dividend stock to purchase. The present dividend yield on LMT stock is 2.67%, and I see room for dividend growth.
Lockheed is well-positioned to profit from the probable continued high level of global defense spending. The business has already seen a significant increase in order intake. Lockheed reported a $150 billion backlog of orders as of Q4 2022. The backlog climbed by 11% year over year.
There are two significant grounds for optimism regarding the order backlog’s future stability. In the first place, Lockheed has been receiving orders from countries other than the United States. Lockheed will gain as Europe increases defense spending to fulfill the NATO goal.
Chevron Corporation (CVX)
The finest option may be Chevron Corporation (NYSE:CVX). The company with a dividend yield of 3.14% trades at a promising ahead P/E ratio of 9.4.
Oil has held steady at roughly $80 per barrel despite fears about the recession. As a result, Chevron will have stable cash flows and attractive break-even assets. For context, Chevron reported an operating cash flow of $13.7 billion for the third quarter of 2022. The potential OCF is $40 billion annually.
In the coming years, Chevron intends to invest $15 to $17 billion yearly. Even with risky investments, there will be enough money for buybacks and dividends. It’s important to note that Chevron has a balance sheet that is investment-grade.
Vale (VALE)
In the past six months, Vale’s (NYSE:VALE) stock has surged higher with returns of 40%.
The stock’s projected price-earnings ratio of 5.4 maintains its allure. Furthermore, the dividend yield is favorable at 7.9%, and I anticipate dividend growth.
There is a strong likelihood that stimulus measures will be implemented in the upcoming quarters due to recession fears. The prices of commodities will benefit from this. The increase in the price of iron ore accounts for the increase in the value of the VALE shares.
AT&T (T)
AT&T (NYSE:T) is another dividend stock to purchase and hold when considering values. T stock appears to be ready for a significant surge with a forward price-earnings ratio of 7.4. Additionally, the stock has a dividend yield of 5.79%.
AT&T just released outstanding quarterly results, and there are a lot of advantages. First, in the past year, the corporation lowered its net debt by $24 billion. Deleveraging is probably going to continue, and the stock will rise as credit indicators get better.
Additionally, AT&T reported $14.1 billion in free cash flow for 2022. The business distributed $8 billion in dividends over the same time period. Therefore, significant financial flexibility is required for investments to maintain growth.
Walmart (WMT)
One of the dividend stocks to consider for purchase, as well as hold for the long term, is Walmart (NYSE:WMT). The dividend yield on the stock is currently 1.57%. Despite the effects of inflation, Walmart says it has been seeing successes. Over the last nine months of 2022, the company gave its shareholders a $13.3 billion return.
I expect that the growth of comparable store sales at similar stores in 2023 will be higher than it was in 2018. Walmart would benefit from a recession because such an occurrence would suggest that politicians were taking quick steps toward increasing spending. For the third quarter of 2023, Walmart reported revenue growth in international markets of 7.1%. The expansion of the global market is anticipated to continue in the future years. Walmart’s expanding footprint in China and India is the cause.
