In deciding to add a selection of top dividend stocks to your portfolio, you will be investing in companies that distribute a portion of their profits to shareholders every three months.

In this guide, we discuss the 10 best dividend stocks to consider buying right now. We also explain how to invest in dividend stocks with an online broker that offers 0% commission.

Best Dividend Stocks to Buy 

We found that the best dividend stocks in the market right now are the 10 companies listed below:

  1. Lucky Block – Interest-Paying Crypto That’s a Better Alternative to Dividend Stocks
  2. Coca-Cola – Established Dividend Stock with Huge Reputation
  3. Johnson & Johnson – Solid Stock That Has Increased Its Dividend for 60 Years
  4. ExxonMobil – High-Yield Dividend Stock From the Energy Sector
  5. Philip Morris International – Large-Cap Dividend Stock That Could be Undervalued
  6. Verizon Communications – Attractive Dividend Yield With a Low P/E Ratio
  7. Chevron – Dividend Aristocrat and American Oil and Gas Producer
  8. Bank of America – Solid Dividend Stock That Continues to Outperform the Wider Banking Sector
  9. Apple – Modest Dividend Yield With Huge Share Price Upside
  10. Walgreens Boots Alliance – Cheap Dividend Stock to Buy for Long-Term Value

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

We analyze the 10 dividend stocks outlined above in the following sections of this guide. We’ll also explain how you can buy stocks at eToro at 0% commission in under five minutes.

A Closer Look at the Best Dividend Stocks to Invest 

In choosing the best dividend stocks for your portfolio, there are many metrics that you need to consider.

In addition to the size of the dividend yield on offer, you should also explore how long the company has been making distributions and whether or not it has a track record of increasing payments.

Moreover, you should also look at the fundamentals of the dividend stocks, such as how their share price has increased in recent years compared to the broader market.

In the sections below, we take the aforementioned factors into account by comparing the 10 best dividend stocks for 2022.

1. Lucky Block – Interest-Paying Crypto That’s a Better Alternative to Dividend Stocks

lucky block logoOur number one pick when it comes to the best dividend stocks is Lucky Block. Interestingly, Lucky Block isn’t a stock but is an exciting new cryptocurrency that allows holders to generate a passive income stream through regular dividend payments. Since yields can equate to over 19% per year, Lucky Block takes the top spot on our list.

Put simple, Lucky Block is an innovative crypto-lottery platform built on the Binance Smart Chain (BSC). Through the use of blockchain technology, Lucky Block aims to improve the fairness and transparency of the lotto process. In addition, since anyone in the world can take part, Lucky Block can offer daily jackpots – providing a greater chance of winning for each player.

Lucky Block’s native token, LBLOCK, forms the foundation of the platform. As stated in Lucky Block’s whitepaper, 10% of each daily jackpot will be distributed to LBLOCK holders as a dividend. All that’s required is for holders to connect their wallet to the Lucky Block app, and these payments will commence – with yields rising as more people participate in the lotto draws.

Lucky Block price chart

Alongside dividend payments, LBLOCK is also ideal from a speculative perspective. After listing on PancakeSwap earlier this year, LBLOCK holders experienced quadruple-digit returns, thanks to hype driven by the mainstream media and Lucky Block’s Telegram group. Although the price has decreased significantly from this point, there is now scope to invest in LBLOCK while it’s trading at a discount.

Lucky Block’s team is gearing up for the official launch of the platform’s iOS and desktop apps, along with the FIAT ramp to allow LBLOCK purchases using regular currencies. There are also plans for metaverse incorporation and additional crypto games in the future, creating more use cases for LBLOCK. Finally, thanks to LBLOCK V2’s bridge to the Ethereum network, there’s now scope for integration with countless dApps – providing another compelling reason to buy Lucky Block.

Cryptoassets are a highly volatile unregulated investment product.

2. Coca-Cola – Established Dividend Stock with Huge Reputation

Another great dividend stock to consider is Coca-Cola. In February 2022, the board at Coca-Cola announced their 60th consecutive annual dividend increase. This means that for six decades, Coca-Cola has not only paid a dividend but increased the size of its annual contribution.

And as such, irrespective of how the broader economy has performed, Coca-Cola has stayed true to its word as being one of the best dividend stocks to buy and hold for consistency and solidity. After all, its products – which also include Fanta, Dr. Pepper, Sprite, Costa Coffee, Schweppes, and Oasis, are sold in virtually every country globally.

coca-cola stock price

As of writing, Coca-Cola is offering a running dividend yield of just over 2.7%. In terms of its recent share price performance, Coca-Cola shares are up nearly 20%. Over the prior five years, the stocks have increased by over 48%. In comparison, direct competitor PepsiCo has seen its shares increase by 21% and 52% over the prior one and five years, respectively.

As such, Coca-Cola has slightly underperformed PepsiCo. With that being said, Coca-Cola has outperformed the NYSE Composite – which has grown by just 4% and 46% respectively over the same period. Ultimately, regardless of whether the wider stock markets are bullish or bearish, Coca-Cola is a company that you can rely on for consistent growth.

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3. Johnson & Johnson – Solid Stock That Has Increased Its Dividend for 60 Years

In a similar nature to Coca-Cola, Johnson & Johnson is a solid dividend king that has increased the size of its annual distribution for no less than 60 consecutive years. For more than 130 years, Johnson & Johnson has been a market leader in various core divisions – which includes household and surgical products, over-the-counter drugs, and more recently – a vaccine for COVID-19.

Due to the products offered by the Johnson & Johnson brand, this company is widely considered a stable stock. This means that Johnson & Johnson products will still be in demand even if the economy is performing poorly. And as such, this makes Johnson & Johnson one of the best dividend stocks for those that are searching for high-grade equities.

johnson & johnson stock price

In terms of its stock market performance, Johnson & Johnson shares have increased by over 12% in the prior year. Moreover, the shares have increased by nearly 50% over the past five years. In comparison, the S&P 500 has increased by 8% and 91% over the same period. As of writing, Johnson & Johnson is offering a running dividend yield of 2.3%.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

4. ExxonMobil – High-Yield Dividend Stock From the Energy Sector 

If you’re looking for the best-performing dividend stocks for high yields, then you might want to focus on the energy sector. After all, companies operating within this sector are known to offer some of the best dividend yields in the market. And, at the forefront of this is ExxonMobil – which is a US-based leader in global oil and gas exploration.

As of writing, ExxonMobil stocks are offering a running dividend yield of 4%. Although in the midst of the pandemic, ExxonMobil stocks were yielding a dividend yield of 7-8%, this is still attractive. Moreover, it is also important to note that ExxonMobil stocks have generated significant gains in recent times.

exxon mobil stock price

This is largely due to the rise of global oil prices, which have since surpassed $100 per barrel. Over the prior 12 months, for instance, ExxonMobil stocks have increased by a whopping 56%. Over the past five years, the shares have performed less well – with gains of just 7%. Nonetheless, overall, ExxonMobil can be a great addition to your long-term dividend portfolio.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

5. Philip Morris International – Large-Cap Dividend Stock That Could be Undervalued  

Philip Morris International is a global tobacco manufacturer with operations in over 180 countries. This top-rated stock is offering a running yield of 5% at the time of writing, which is one of the most attractive dividend policies in this industry. When it comes to long-term growth, Philip Morris International is also solid as it gets.

After all, the addictive nature of tobacco will ensure that Philip Morris International products – which includes leading cigarette brand Marlboro, will always be in demand regardless of how the economy is doing. Furthermore, when revenues for Philip Morris International are down, the firm is known to increase its prices – with little effect on broader demand.

phillip morris stock price

When it comes to its share price performance, Philip Morris International stocks are nearly 10% up over the prior year. Although this is slightly below the market average, don’t forget that you will also be entitled to a running yield of 5% based on current prices. Moreover, when you consider that the shares are down 9% over the prior 5 years, this dividend stock could be undervalued.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

6. Verizon Communications – Attractive Dividend Yield With a Low P/E Ratio  

There are many reasons why Verizon Communications is one of the best long-term dividend stocks to consider buying right now. First and foremost, although Verizon Communications is not a dividend aristocrat – which requires an annual distribution increase for 25 years, the firm has still been making quarterly payments for 15 years.

Moreover, each payment within the prior 15 years has increased in value. As such, Verizon Communications is a solid dividend stock for consistency. As of writing, Verizon Communications is offering a running dividend yield of nearly 5%. We also like this top-rated dividend stock for its attractive P/E ratio. At the time of writing, this stands at just over 10 times.

verizon stock price

This could indicate that within current market conditions, Verizon Communications is undervalued when compared to the broader industry. In terms of key projects, Verizon Communications is making great progress with its 5G rollout. On the other hand, we should note that this dividend stock is down 7% over the 12 months, and up a mere 13% in the past five years.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

7. Chevron – Dividend Aristocrat and American Oil and Gas Producer   

Another energy company to consider from our list of the best dividend stocks is Chevron. This US-based oil and gas producer is in prime position to benefit from the ongoing sanctions implemented on Russian exports. In fact, over the prior 12 months alone, Chevron stocks are up nearly 67%.

Furthermore, Chevron is a solid dividend aristocrat, not least because the firm has increased the size of its distribution for 36 consecutive years. In buying this top-rated dividend stock, you will get a running yield of over 3.3%. What we also like about  Chevron is that the firm has a solid balance sheet.

chevron stock price

This includes significant levels of free cash flow – which will enable Chevron to continue its aggressive global exploration ventures. Another thing to note about Chevron is that the firm plans to increase its share buyback program in the coming months. In doing so, this will further increase the yield that you can generate from this reliable dividend stock.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

8. Bank of America – Solid Dividend Stock That Continues to Outperform the Wider Banking Sector    

Another top-rated dividend stock to consider for your portfolio today is the Bank of America. Not only is this one of the best dividend stocks for consistency, but the Bank of America continues to outperform its peers in terms of share price value. For instance, over the prior fives years, the Bank of America has seen its share price increase by 74%.

In comparison, the Invesco KBW Bank ETF – which tracks the performance of leading US-based financial institutions, has increased by just 33% over the same period. In terms of its dividend program, this banking firm has made a distribution since 2013. With that said, there was no dividend increase in 2020 – due to the impact of the pandemic.

bank of america stock price

Nonetheless, in buying Bank of America stocks today, you will obtain a running yield of over 2.1% – as of writing. What we also like about Bank of America is that the firm is carrying a P/E ratio of just 11 times. Based on its performance over the prior few years, this indicates that Bank of America stocks are still somewhat undervalued.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

9. Apple – Modest Dividend Yield With Huge Share Price Upside     

Apple is one of the largest companies globally – with a market capitalization that could surpass $3 trillion by the end of 2022. Apple is the only FAANG stock that pays a dividend. With that said, the running dividend yield offered by this leading tech giant amounts to just 0.5%.

Although this is the smallest yield from our list of the best dividend stocks for 2022 – if you were to buy Apple stock, it can generate financial growth in other areas. After all, Apple stocks are up nearly 380% over the prior five years. In the past 12 months alone, Apple stocks have increased by almost 30%.

apple stock price

And as such, while its dividend payments are modest, Apple offers consistent value from its share price performance. Moreover, in 2021 alone, Apple allocated more than $85 billion in cash to its share buyback program, which generates further value for stockholders. Apple is still hoarding approximately $200 billion in cash, so further buybacks could be on the cards for 2022.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

10. Walgreens Boots Alliance – Cheap Dividend Stock to Buy for Long-Term Value     

Walgreens Boots Alliance is a large-cap holding company with more than 4,000 pharmacy and healthcare locations in the US. Based on its recent performance, we would argue that Walgreens Boots Alliance is one of the best dividend stocks to buy now on the cheap. For instance, over the prior year, the stocks are down 17%.

Over the prior five years, the stocks have lost over 45% in value. However, there is still much to like about this dividend stock. At the forefront of this is the robust balance sheet that Walgreens Boots Alliance is holding. This will facilitate future store expansion with ease. Moreover, Walgreens Boots Alliance is a solid dividend aristocrat.

walgreens stock price

In fact, for 45 consecutive years, this firm has increased the size of its annual payment. And, if this trend continues as expected, then in five years’ time Walgreens Boots Alliance will join the dividend king club. Based on prices at the time of writing, Walgreens Boots Alliance stocks are paying a running dividend yield of over 4.2%.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

What are Dividend Stocks?

Put simply, dividend stocks refer to companies that distribute retained profits to those holding shares. In most cases, the best dividend-paying stocks will make a distribution every three months.

In rarer cases, the firm might make a payment bi-annually. Either way, the amount of money that you receive will depend on two key metrics:

  • The size of the dividend per share announced by the company
  • The number of shares that you own

For instance, we noted earlier that in February 2022, Coca-Cola raised its annual dividend for the 60th consecutive year. The payment increased from $0.42 per share to $0.44.

This means that had you owned 1,000 Coca-Cola shares, you would have received a total dividend of $440 for the quarter. As such, owning a collection of popular dividend stocks in your portfolio can be lucrative.

After all, not only will you receive a payment from the company every three or six months, but you will also make money if the value of the shares increases.

  • With that said, it is important to remember that just because a stock pays a dividend, this isn’t to say that the value of your portfolio will grow.
  • For instance, the firm pays a dividend yield of 6%, but if its shares have dropped by 10% since you invested, then you are running at a loss.

We cover the benefits and drawbacks of investing in dividend stocks shortly.

How to Find the Best Dividend Stocks?

There are thousands of US-listed stocks that pay dividends and even more when you start to venture into the international markets.

With that said, not all dividend stocks are worth adding to your portfolio – so it’s important that you do some independent research to find the right companies for you.

In the section below, we discuss the main factors to look for when searching for the best dividend stocks for 2022.

Dividend Yield

If your main investment strategy is to maximize returns from quarterly dividends, then you might want to focus on the yield. Put simply, the yield refers to the size of the dividend payment that you will receive over the course of the year, in relation to the firm’s stock price.

  • For example, we mentioned earlier that the most recent distribution made by Coca-Cola was $0.44 per share.
  • As of writing, Coca-Cola stocks are trading at $63.83.
  • Next, you need to multiply your quarterly payment of $0.44 by four to get the annual dividend.
  • Then, you divide this into the stock price to get a percentage yield. In this case, this amounts to a dividend yield of 2.75%.

Now, it goes without saying that the higher the yield, the better it is for your portfolio. After all, this means that you will receive a more attractive dividend payment.

However, as we cover in more detail shortly, a higher running dividend yield could be a result of falling share prices. Nonetheless, if you’re searching for the best dividend stocks for high yields, the energy sector is a good place to start.

As we noted earlier, oil stocks like ExxonMobil are yielding 4%. Tobacco is another sector that offers an attractive dividend yield. For instance, as of writing, Phillip Morris International and British American Tobacco are yielding 5% and 6.5% respectively.

Dividend Consistency

Just because a company is offering a high yield, this doesn’t necessarily make it one of the best dividend stocks to buy.

Crucially, long-term growth investors will typically favor consistency over yields. By this, we mean the number of years that the firm has paid a quarterly dividend.

Moreover, during this period, there should be no dividend cut or suspension. And, perhaps most importantly, you should assess how long – if at all, the stock has increased the size of its annual dividend.

best dividend stocks for consistency

For example, many of the firms discussed today fall into the category of a dividend aristocrat or king. This means that the company has increased the size of its annual dividend payment for 25 or 50 consecutive years, respectively.

In choosing such dividend stocks, you can be sure that you are investing in solid companies that remain consistent even when the broader markets are not performing well.

Furthermore, you might even consider adding many dividend aristocrats and kings to your portfolio to ensure that you are not overexposed to one stock.

In doing so, if the unexpected happens and one of your high-grade stocks stops paying dividends – then you won’t feel the impact of this anywhere near as much.

Financial Strength 

Companies are able to make dividend payments when they have sufficient levels of free cash flow. As such, in order to find the best dividend stocks for your portfolio, you need to explore the firm’s balance sheet before proceeding.

A great example of companies with a robust balance sheet and plenty of surplus cash are  Coca-Cola, Johnson & Johnson, and Phillip Morris International.

Even if the aforementioned firms experience a quarter that is below market expectations, there should be no reason why a dividend payment cannot be met. As such, these firms offer a consistent dividend program regardless of performance.

  • However, you then have firms like AT&T – whereby the telecommunications giant was a dividend aristocrat until 2021.
  • It lost this status because its 2021 dividend payment did not increase from 2020.
  • And, the overarching reason for this is that AT&T has a less than favorable balance sheet.
  • This sentiment was further supported in early 2022 when it was announced that AT&T would be cutting its dividend.

Ultimately, in order to choose the best dividend stocks in terms of long-term consistency, focus on companies that have strong balance sheets.

Share Price Performance vs Broader Markets 

Focusing exclusively on dividends when you buy stocks can be a costly exercise. After all, if the value of the shares decreases by a greater amount than the size of the dividend you receive, then you will make a loss on your investment.

Moreover, you also need to consider opportunity costs. This means that by choosing dividend stocks that underperform the broader markets, you are not making as much money as you could be elsewhere.

  • For instance, we mentioned earlier that Apple is yielding an average dividend yield of just 0.50%.
  • Although this is a much lower yield when compared to other dividend stocks that we have discussed today, it is important to take into account the share price increase that Apple has generated in recent years.
  • Over the prior five years, for example, Apple stocks have increased by 380%.
  • This is significantly more than you can make from any dividend policy available in the US stock markets.

As such, when searching for the best dividend stocks, it is crucial to also think about the growth potential of the shares in question.

Are Dividend Stocks a Good Investment?

If you’re wondering whether dividend stocks are right for your portfolio, there are a number of factors to consider before proceeding with an investment.

In terms of the benefits, consider the points discussed below:

Consistency

When adding the best dividend stocks to your portfolio, you are often investing in companies that have a consistent track record of meeting their distribution targets.

For example, many of the stocks discussed today have increased the size of their annual dividend payment for many decades. This has been achieved even when the broader economy is performing badly.

For example, the likes of Coca-Cola and Johnson & Johnson – both of which are dividend kings, increased their annual payments during 2020 when the pandemic was in its midst. This was also the case during the 2008 financial crisis – and many prior recessions.

Income During Bear Markets

Another thing to note about dividend stocks is that you will receive income even when the broader markets are bearish.

That is to say, if the value of your stocks has declined because of wider market conditions, all is not lost – as you will still receive a quarterly payment.

Moreover, this yield will positively impact your bottom line. For example, if a stock you own declines by 5% over the course of the year but you will receive an annual dividend yield of 2%, your loss has been reduced by 3%.

Compound Interest

Perhaps the greatest benefit of buying dividend stocks is that they give you the best opportunity to execute a strategy that is focused on compound interest.

In its most basic form, this means that you will reinvest your dividend payments back into the stock markets. And, in doing so, these payments will also attract dividends, meaning that you can grow the value of your portfolio much faster.

For example:

  • Let’s say that you own $10,000 worth of Bank of America stocks
  • After one year, you receive a dividend yield of 3% – which amounts to payments totaling $300
  • You decide to reinvest the $300 back into Bank of America stocks – taking your total holdings to $10,300
  • After the second year, you have again generated a dividend yield of 3%
  • This time, the 3% yield is based on $10,300 worth of Bank of America stocks
  • As such, your annual dividend payments amount to a higher figure of $309

This compound growth strategy can continue indefinitely. Moreover, as more time passes by, you will begin to notice that your portfolio starts to compound at a much faster pace.

Dividend Stocks are Ideal for Retirement Income  

Another huge benefit of buying dividend stocks is that they can be a great source of income when you retire. Crucially, this is because you will receive a payment every three months without needing to sell any of your investments.

In theory, this will remain the case indefinitely, as long as you refrain from cashing out and the companies in question continue to pay dividends.

Dividend ETFs Allow you to Invest Passively

As noted earlier, there are thousands of dividend stocks to choose from across a variety of sectors and potential yields. This can make it challenging to know which companies offer the best dividend stocks for your portfolio. Moreover, if you try to diversify on a DIY by purchasing dozens of different dividend stocks, this will require you to be overly active in terms of research.

The good news is that passive investors are catered for through a number of leading dividend stock ETFs. This means that you can invest in a basket of dividends without needing to do any research. Furthermore, the best dividend stock ETFs are rebalanced, reweighted, and maintained on your behalf.

SPDR S&P US Dividend Aristocrat ETF

One of the best options in this market is the SPDR S&P US Dividend Aristocrat ETF. As the name suggests, this ETF will get you access to over 100 dividend aristocrat stocks via a single investment. Moreover, you can invest in the SPDR S&P US Dividend Aristocrat ETF at eToro from just $10 without paying a single cent in trading commission.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

Risks to Consider Before you Buy Dividend Stocks

Although there are many benefits that you can take advantage of when you buy the best dividend stocks, you also need to consider the risks.

The main drawbacks of investing in dividend-paying stocks are discussed in the sections below.

Companies Can Cut or Suspend Dividends 

Just because your chosen dividend stocks have a great track record of making quarterly payments, this isn’t to say that this will always be the case.

  • This risk was brought to life in the midst of the pandemic in early 2020 – when a large number of S&P 500 companies announced that they would be cutting the size of their dividends.
  • Moreover, in many cases, some companies went one step further by suspending their dividend policy until further notice.
  • A number of such firms have still not resumed their dividend program.

Ultimately, this is why it might be better to invest in a dividend ETF with a clear eligibility requirement.

For instance, with the previously discussed  SPDR S&P US Dividend Aristocrat ETF – the fund will remove a company from its portfolio should it fail to consistently increase the size of its annual payment.

Dividend Aristocrats and Kings Often Generate Slow Growth   

There is often a common denominator between dividend aristocrats and kings. Sure, they have a long-standing track record of increasing their annual dividend payments.

But, in many cases, you will also notice that share price growth witnessed by these companies is somewhat modest – at least in comparison to the broader market.

coca-cola vs sp500

This is usually because solid dividend companies have already witnessed the vast bulk of their growth. For example, Coca-Cola stocks – as consistent as they are for continued growth and dividends, have increased by just 48%.

In comparison, the S&P 500 has increased by 91% over the same period. In another example, Chevron – which has increased the size of its dividend for 36 consecutive years, has grown by 62% in the past five years.

Once again, this is much slower than the growth generated by the S&P 500.

Tax Disadvantages

Another risk that you need to consider before you elect to buy the best dividend stocks in the market is that you will be at a disadvantage when it comes to your tax liabilities.

This is because when you receive a dividend payment, this will be included in your tax liabilities for the respective financial year. This is in stark contrast to classic share price gains, where tax is not payable until the stocks are cashed out.

In other words, when you invest in non-dividend companies – like Amazon and Tesla, no capital gains tax will be liable until you actually sell the shares.

Dividend Yield is Misleading

One of the biggest mistakes that inexperienced investors make is that they buy dividend stocks solely because of the yield on offer.

For instance, when you search Google stock prices, the dividend yield that you are shown is based on the most recent payment against the current share price.

This means that if the share price has gone down since the prior dividend was distributed, this will artificially inflate the running yield.

As such, this could suggest that the company is facing certain issues that require further exploration. For example, AT & T was yielding a dividend of over 7% for some time, even though its stock price was plummeting.

Dividend Penny Stocks

Penny stocks are not only defined as companies with a share price of below $5 but those that have a small market capitalization. As such, very few penny stocks will have a dividend program in place.

Moreover, penny stocks will typically trade on the OTC (Over-the-Counter) markets, which means that retail investors might find it difficult to gain access.

  • U.S. Global Investors – This penny stock is trading at just under the $5 threshold at the time of writing. It carries a very small market capitalization of less than $100 million. With that said, this penny stock – which trades on the NASDAQ, is offering a running yield of 1.80%
  • Gold Resource Corporation – As the name suggests, this penny stock is involved in the exploration and production of gold. Gold Resource Corporation, as of writing, is trading with a market capitalization of just over $200 million and it pays a running dividend yield of nearly1.70%.
  • Nordic American Tanker – As of writing, this penny stock is valued at just over $500 million and year-to-date, has returned gains of nearly 50%. Based on prices as of writing, Nordic American Tanker is offering a running yield of 1.7%.

Take note, that when you invest in penny stocks, you typically do so with the intention of targeting above-average share price gains.

As such, if you are looking for the best dividend stocks for consistent income and reduced risk levels, you might want to avoid companies from this equity category.

Where to Buy Dividend Stocks

When thinking about how to buy dividend stocks, you will need to choose the best stock trading platform that meets a number of requirements.

Not only should the broker give you access to a wide range of dividend-paying companies, but it should support low fees and fractional investments.

This will give you the best chance possible of creating a diversified portfolio of the best dividend stocks discussed today.

If you’re still not sure where to buy stocks for this purpose – below we explain why eToro is the overall best broker in the US.

eToro – Best Place to Buy Dividend Stocks at 0% Commission

Since eToro was launched in 2007, it has since become one of the most popular stock brokers globally – with the platform now supporting over 25 million investors. You can open an account here in a matter of minutes and the KYC process is completed instantly. Moreover, US clients only need to deposit $10 to get started.

Crucially, all supported payment methods here – which include debit and credit cards, e-wallets like PayPal, and traditional bank transfers, are processed fee-free. This is on the proviso that deposits are made in US dollars. Once your eToro account is ready to go – you will then have access to thousands of stocks – many of which pay quarterly dividends.

In fact, all of the companies from our list of the 10 best dividend stocks of 2022 are available to buy and sell at eToro. And, regardless of which dividend stocks you buy, you will not be charged any trading commission at this broker. This is the case even if you decide to buy dividend stocks from overseas – with eToro supporting markets in Europe, Canada, Asia, and more.

etoro review

Another huge benefit of choosing eToro to invest in dividend stocks is that the broker supports fractional shares. This means that you can buy any dividend-paying stock of your choosing from just $10. As such, should you wish to deposit $100 into your eToro account, you will have the opportunity to diversify across 10 different dividend stocks. Furthermore, you’ll also have access to a wide range of markets including the best penny stocks as well as the best oil stocks.

We should also mention that eToro gives you access to a number of popular dividend stock ETFs. This includes the previously discussed SPDR S&P US Dividend Aristocrat ETF – which can be invested commission-free from a minimum of $10. In addition to ETFs, eToro also allows you to buy cryptocurrency meaning you can invest in Bitcoin, Ethereum, and dozens more.

eToro review

Another hugely popular feature offered on the eToro website is the copy trading tool. In its most basic form, this enables you to copy the trades of a skilled investor that has a verifiable track record at eToro. Once you have selected a trader to copy and decide how much to invest (minimum $200), all future positions will be mirrored in your own account.

This means that you can actively buy and sell stocks without putting in any of the legwork. This is also the case when you invest in smart portfolios – of which there are dozens to choose from. These are professionally managed by eToro and cover a wide spectrum of strategies – including that of dividend stocks.

We also like eToro for its popular stock app – which connects to your main account. This means that you can buy, sell, and track dividend stock prices in real-time – and keep tabs on any quarterly payments that are deposited into your portfolio. Finally, eToro is a heavily regulated broker – which is approved by licensing bodies in the US, UK, Europe, and Australia.

If you’re still on the fence, you can read our eToro vs Webull review to see how this leading social trading platform performs when pinned against another popular broker.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

Conclusion

In summary, dividend stocks can provide your investment portfolio with both stability and consistency.

And, when investing in some of the best dividend stocks discuss today – such as Coca-Cola, Johnson & Johnson, and Dover, you will be buying shares in companies that have increased the size of their annual payment for many decades.

To buy dividend stocks right now, you can open a verified account with eToro in under five minutes. This will then allow you to buy your chosen stocks at 0% commission and from a minimum investment of $10 per trade.

etoro review

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

FAQs on the Best Dividend Stocks 

What are the best dividend stocks to invest in 2022?

What are the best monthly dividend stocks?

How do you buy dividend stocks?

Should I buy dividend stocks?

How many shares do you need to get dividends?

How do dividend stocks work?

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