As investors look to the future, they are increasingly turning to dividend stocks as a way to generate income and build wealth. In this article, we will take a look at the 10 best dividend stocks to watch in 2023.

Depending when you read this blog post, some of the values may not align up correctly. Please make sure to do your own research on any of the stocks you wish to explore listed below.

What Are Dividend Stocks?

Dividend stocks are stocks that pay out a portion of their profits to shareholders in the form of dividends. Dividends are typically paid out on a quarterly basis, but some companies may pay them out more or less frequently. Dividend stocks can provide investors with a steady stream of income and can be an attractive option for those looking to build wealth over time.

They also tend to be less volatile than other stocks, as the dividend payments provide a cushion against market downturns.

1. Johnson & Johnson (JNJ)

Johnson & Johnson is a healthcare giant that has been paying dividends since 1944. The company currently offers a dividend yield of 2.55%, and its dividend payout ratio is an impressive 58%. JNJ has consistently increased its dividend for the past 57 years, making it one of the most reliable dividend stocks on the market.

2. Procter & Gamble (PG)

Procter & Gamble (PG) is a consumer goods giant that has been paying dividends since 1890. The company currently offers a dividend yield of 2.4%. PG has consistently increased its dividend for the past 57 years, making it one of the most reliable dividend stocks on the market.

3. Coca-Cola (KO)

Coca-Cola (KO) is a beverage giant that has been paying dividends since 1920. The company currently offers a dividend yield of 2.8%, and its dividend payout ratio is an impressive 59%. KO has consistently increased its dividend for the past 57 years, making it one of the most reliable dividend stocks on the market.

4. Microsoft (MSFT)

Microsoft (MSFT) is a technology giant that has been paying dividends since 2003. The company currently offers a dividend yield of 1.15%, and its dividend payout ratio is an impressive 41%. MSFT has consistently increased its dividend for the past 18 years, making it one of the most reliable dividend stocks on the market.

5. AT&T (T)

AT&T (T) is a telecommunications giant that has been paying dividends since 1984. The company currently offers a dividend yield of 6.15%, and its dividend payout ratio is an impressive 64%. T has consistently increased its dividend for the past 37 years, making it one of the most reliable dividend stocks on the market.

6. Walmart (WMT)

Walmart (WMT) is a retail giant that has been paying dividends since 1974. The company currently offers a dividend yield of 1.6%, and its dividend payout ratio is an impressive 42%. WMT has consistently increased its dividend for the past 47 years, making it one of the most reliable dividend stocks on the market.

7. ExxonMobil (XOM)

ExxonMobil (XOM) is an energy giant that has been paying dividends since 1882. The company currently offers a dividend yield of 3.4%, and its dividend payout ratio is an impressive 56%. XOM has consistently increased its dividend for the past 138 years, making it one of the most reliable dividend stocks on the market.

8. Pfizer (PFE)

Pfizer (PFE) is a pharmaceutical giant that has been paying dividends since 1938. The company currently offers a dividend yield of 3.2%, and its dividend payout ratio is an impressive 62%. PFE has consistently increased its dividend for the past 83 years, making it one of the most reliable dividend stocks on the market.

9. Apple Inc. (AAPL)

Apple Inc. (AAPL) is a technology giant that has been paying dividends since 2012. The company currently offers a dividend yield of 0.7%, and its dividend payout ratio is an impressive 25%. AAPL has consistently increased its dividend for the past 9 years, making it one of the most reliable dividend stocks on the market

10. JPMorgan Chase & Co.(JPM)

JPMorgan Chase & Co. (JPM) is a financial services giant that has been paying dividends since 2004. The company currently offers a dividend yield of 3.1%, and its dividend payout ratio is an impressive 33%. JPM has consistently increased its dividend for the past 17 years, making it one of the most reliable dividend stocks on the market.

Summary

The 10 best dividend stocks to watch in 2023 are Microsoft (MSFT), AT&T (T), Walmart (WMT), ExxonMobil (XOM), Pfizer (PFE), Apple Inc. (AAPL) and JPMorgan Chase & Co. (JPM). These companies have consistently increased their dividends for many years, making them reliable investments for long-term investors.

I am not a financial advisor and anything I say in my blog is not to be taken as financial advice. For any financial advice please contact a financial professional. My blog is based on my own opinions, research and understanding of the financial markets.

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FAQ

How to select high dividend shares UK?

One school of thought is that UK investors' best high dividend shares are those issued by the more mature dividend-paying enterprises as they have an excellent year on year dividend payout track record. But even these reliable dividend payers can fail to offer a high dividend yield in the face of extraordinary events like pandemics and wars.

Source: blog.moneyfarm.com

Are these the best yielding dividend stocks in the UK?

Dividend-paying companies mean a reliable source of returns, and often represent future growth prospects for investors. We list some of the UK's top dividend stocks with high dividend yields and how you can buy them.

Source: ig.com

How to calculate dividend yield?

In simple terms, the yield is calculated by adding up all payouts in the last 12 months (including special dividends), and then dividing the value by the current share price. Yields for a current year can be estimated using the previous year's dividend or by multiplying the latest quarterly dividend by 4, then dividing by the current share price.

Source: hellostake.com