Dividend stocks can make you a lot of money. In fact, they’re one of the most reliable sources of income around. You should check out the best dividend stocks to make real money in the next few years. We’ve compiled a list of 20 stellar picks that will bring you profits well into 2023. So, what are you waiting for? Start browsing our inventory and see which ones fit your portfolio!

Written by Kaloian Parchev

Last Updated: 02 September 2023

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What is a dividend in stocks?

Before we move forward into the best dividend stocks – you must know what a dividend is.

Dividends are cash distributions made by a corporation to its stockholders out of its retained earnings. Dividends are one of the methods by that stockholders are rewarded for their investment, and they are distributed regularly.

However, not all companies pay dividends; if you’re looking to invest for dividends, you may pick best dividend stocks to buy and hold.

Please keep reading to see our top picks with dividend potential.

Growth stocks and dividend stocks

When a dividend is paid out of a company’s profits, the surplus is split among the shareholders.

Growth stocks profits are re-invested into the company, and gains are not realized until the stock is traded or redeemed.

What are dividend aristocrats?

A dividend aristocrat is a component of the S&P 500 index that has not only maintained but also increased its dividend payment to shareholders yearly.

If a corporation has increased its dividend payment annually for the past 25 years, it will be recognized as a dividend aristocrat. Some dividend aristocrat fans put more weight on other criteria, such as market cap or liquidity.

Finally, please note that all companies listed in this article are aristocrats.

Emerson Electric

St. Louis-based Emerson Electric (NYSE: EMR) operates in the Industrial Goods market. Since the beginning of the year, the share price has decreased by -1.55%. The corporation’s dividend yield is 2.25% at the current dividend payment of $0.51 per share.

Furthermore, the current yearly payout of $2.06 has up 2% from the previous year. Emerson Electric has boosted its dividend five times during the past five years, with an average rise of 1.45% per year. The company has paid dividends since 1956 and has boosted its annual payout for 66 consecutive years.

Finally, Emerson Electric is one of the best options for you if you are looking for the highest dividend-paying stocks in world.

Procter & Gamble

Procter & Gamble Corporation (NYSE: PG) has a dividend yield of 2.82% with a dividend ex-date of 04/21/2022. The dividend is paid quarterly and has a total annualized value of $3.6532 per share.

With major brands such as Tide, Pampers and Gillette, Procter & Gamble is among the world’s largest consumer products companies. It has paid shareholders a dividend since 1890, and has raised its payout for 66 years in a row.

3M

As of Sept 06, 2022, 3M Company (NYSE: MMM) had a 5.1, significantly higher than the median of 2.4 for all Consumer Goods Conglomerates. In 2017, the dividend yield on shares of 3M Co. was 3.2%.

Depending on the year, quarterly dividends from 3M Co ranged from $0.25 in 1973 to $1.49 in 2022. Averaging a 2.2 annual growth rate over the previous five years, the dividend yield on shares of 3M Co stock has been steadily rising.

3M has been delivering annual dividend increases to investors for 64 years in a row.

Coca-Cola

As a result of the epidemic, businesses that served Coca-extensive Cola’s line of soft drinks, juices, teas, sports drinks, and energy drinks were forced to close. However, those numbers are beginning to rebound.

As of current stats, Coca-Cola (NYSE: KO) pays 2.82% annually and 0.44USD every 4 months. The company’s dividend history stretches back to 1920, and the payout has swelled for 60 consecutive years.

Finally, it is also one of the best dividend stocks 2023 you can count on in future.

Colgate-Palmolive

The American multinational company is also an excellent option for investors investing in best dividend stocks of all time. Also, as of Sept 01, 2022, Colgate-Palmolive (NYSE: CL) is up to 2.40%.

Colgate’s dividend dates back more than a century, to 1895, and the company has increased it annually for 60 years in a row.

Johnson & Johnson

With its strong cash flow generation capabilities, ubiquitous brand recognition, and extensive asset base in the healthcare industry, Johnson & Johnson (NYSE: JNJ) has increased its annual payout for the past 60 years, making it a Dividend Aristocrat.

As of this writing, investors can get a fantastic 2.7% return on their investment by purchasing JNJ stock.

Hormel Foods

Consistent consumption trends have benefited Hormel Foods (NYSE: HRL) and helped increase top-line sales. Also, the company has a track record of reliable dividend payments.

HRL’s dividend payments have risen by 10.5% over the last five years. Its current dividend yields 2.1%, higher than the average dividend yield over the past four years (1.95%). On Feb 15, 2022, it distributed a best dividend stocks for passive income $0.26 per share.

Leggett & Platt

For over 130 years, Leggett & Platt (NYSE: LEG) had expanded using a method that has been shown to work. As a result of the company’s consistent profitability, the dividend yield has increased for 51 consecutive years and is now at 4.5 percent.

Furthermore, on 09.02.2022, Leggett & Platt shareholders will get a dividend payment of $1.76 according to the company’s trailing twelve-month dividend payments. And as of Sept 02, 2022, the payout ratio for the company is 4.67%.

Abbott Laboratories

As of this writing, Abbott’s dividend yield is 1.7%, which is attractive given the company’s history of dividend growth in recent years.

The company’s diagnostic services saw a surge in demand during the COVID-19 epidemic, and this need has persisted.

Abbott Labs (NYSE: ABT) dates all the way back to 1888. It first paid a dividend in 1924 and its dividend growth streak is long-lived too, at 50 years and counting.

Kimberly-Clark

Kimberly-Clark Corporation’s board of directors has approved a $1.16 quarterly dividend for stockholders. Also, shareholders who registered on Sept 09, 2022, will receive the dividend on Oct 04, 2022.

Furthermore, Kimberly-Clark (NYSE: KMB) has raised its dividend for 50 consecutive years, and the company has distributed dividends annually for 88 years.

PepsiCo

There is a long tradition of dividend payments to Pepsi (NASDAQ: PEP) stockholders. Pepsi shares also have a high dividend yield and promising prospects for future dividend increases.

At last, Pepsi’s dividend is backed by a secure corporation stacked with recognized brands. Any dividend investor would benefit from this potent combo.

PepsiCo declared its 50 straight annual increase in May 2022 with a 7% bump in the quarterly dividend to $1.15 per share.

Nucor

Nucor Corporation (NYSE: NUE) scored a 1.5 on Sept 06, 2022, while the median for the Metals & Minerals – Iron & Steel industry was 1.6. Throughout all of 2017, the dividend yield on shares of Nucor Corporation averaged 1.8%.

Nucor is the largest US steelmaker. As one of the best dividend stocks, Nucor has increased its dividend for 49 straight years, or every year since it began paying dividends in 1973.

Consolidated Edison

Consolidated Edison (NYSE: ED) is the largest utility company in New York State by number of customers. Founded in 1823, it provides electric, gas or steam services to roughly 3.5 million customers in New York City.

The dividend yield on shares of Consolidated Edison is about 3.4% each year, making it one of the most rewarding best dividend stocks for passive income Aristocrats index.

The longtime Dividend Aristocrat has hiked its annual distribution without interruption for 48 years in a row.

Finally, that fact alone makes it one of the best dividend stocks you can invest in.

Archer Daniels Midland

Archer Daniels Midland (NYSE: ADM) processes ingredients for food and feed, including corn sweeteners, starches, and emulsifiers such as lecithin.

It is paying a quarterly amount of 0.40USD with an annual dividend yield of 1.83%. Archer Daniels Midland has paid out dividends on an uninterrupted basis for 89 years.

Most experts consider it an excellent stock to invest in and a safe investment.

Automatic Data Processing

Since Mar 01, 1974, Automatic Data Processing Inc. (NASDAQ: ADP) has provided its stockholders with quarterly dividend payments.

ADP is the world’s largest payroll processing firm, responsible for paying nearly 40 million employees and serving more than 920,000 clients across 140 countries.

Furthermore, ADP had a 1.7 on Sept 06, 2022, while the average for the IT Services & Consulting industry was 0.0. In 2017, the dividend yield on shares of Automatic Data Processing, Inc. was 1.9%.

Walgreens Boots Alliance

Tracing its roots back to a single drugstore founded in 1901, Walgreens Boots Alliance (NASDAQ: WBA) has increased its dividend every year for 47 years in a row.

Walgreens’ dividend, which is currently above 4%, maybe the safest in the healthcare sector due to the company’s low payout and long track record of dividend growth.

They are currently paying a quarter payment of 0.48 USD and a massive 5.32% yearly.

McDonald’s

Since its inception in 1940, McDonald’s (NYSE: MCD) has grown to become one of the largest restaurant businesses in the world. Yes, if you are a long-term investor, buying McDonald’s stocks is a solid investment.

McDonald’s is a reliable dividend stock with a bright future. The corporation has an exceptional payout record and a past record of dividend increases.

However, the dividend yield on McDonald’s shares is currently below average. As well as an average dividend increase each year.

McDonald’s dividend dates back to 1976 and has gone up every year since.

Finally, the current dividend yield of McDonald’s is 1.38USD which is paid every four months to investors. Also, annually they are paying the investors a handsome 2.14%.

Air Products & Chemicals

For more than eight decades, Air Products (NYSE: APD) has been a market leader in the production of industrial gases around the globe. The company is a leading provider of critical industrial gases, associated equipment, and applications knowledge, particularly emphasizing the energy, environmental, and growing markets it serves.

Moreover, when it comes to the distribution of technology and equipment for the production of liquefied natural gas, Air Products is unrivaled on a global scale.

It is also one of the best dividend stocks to invest in 2022. Currently, it is paying 1.62USD quarterly and a handsome 2.55% of an annual dividend.

General Dynamics

Since Feb 19, 1979, shareholders of General Dynamics Corporation (NYSE: GD) have received quarterly dividend payments.

Compared to other companies in the Aerospace & Defense industry, General Dynamics Corporation stood out with a median of 0.0 as of Sept 06, 2022, and a score of 2.2. Also, a year ago, the dividend yield on shares of General Dynamics Corporation was 2.6%.

The quarterly dividends paid by General Dynamics Corporation began on Feb 19, 1979 and increased to a maximum of $1.26 in 2022. The dividend yield of shares of General Dynamics Corporation has climbed by an annualized rate of 1.7% over the previous five years.

Realty Income – one of the best dividend stocks!

Realty Income (NYSE: O) is one of the most excellent options if you are looking for a dividend stock option.

In contrast to most dividend-paying equities, Realty Income distributes monthly rather than quarterly dividends. As of Friday’s market closing, it yielded 4.6%, or $0.23 per share, which is above average.

The company owns more than 6,700 commercial real estate properties that are leased out to more than 630 tenants, including Walgreens, 7-Eleven, FedEx, and Dollar General.

Finally, Realty Income is one of the best dividend stock options if you want a long-term investment.

An excellent approach to invest

Investing in multiple stocks is always an excellent approach instead of putting all your hard-earned bucks into one company. So, it is highly recommended to do your own research and chose at least 10 to 20 different companies with good potential. This is the so-called diversification approach.

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Conclusion

So, there you have it. Our list of the 20 best dividend stocks for 2023. We hope this gives you a good starting point for researching the best companies to invest in for reliable and consistent dividends. Finally, it is a good practice in the investment world to always have a backup plan or money to put you on your feet if an investment brings you a loss. So, do you have any favorites that we missed? Let us know in the comments below!

I am not financial advisors. The content in this article is for educational purposes only and merely cite our own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in investing money; nor is there any guarantee that you won’t experience any loss when investing. Always remember to make smart decisions and do your own research when spending your capital!