WallStreetZen

Stock ScreenerStock IdeasBest Dividend Paying Stocks For The Long Term
Dividend Stock Screener: Best Dividend Paying Stocks For The Long Term
A dividend stock screener to help you uncover the best dividend paying stocks for the long term (to buy and hold)

Dividend Yield: Has dividends
Ticker
Company
Dividends Score
Market Cap
Dividend Yield
Payout Ratio
Last Dividend
Annual Dividend
Dividend Percentile
Dividend Dropped Count (L10Y)
Ex-dividend Date
Div. Payment Date
AAPLApple Inc
60
$2.46T0.57%16.20%$0.2200$0.859%0
MSFTMicrosoft Corp
60
$2.43T0.69%24.80%$0.5600$2.2412%02021-11-172021-12-09
NVDANvidia Corp
20
$609.32B0.11%5.60%$0.0400$0.281%1
TSMTaiwan Semiconductor Manufacturing Co Ltd
60
$589.92B1.62%48.50%$0.4967$1.8436%12021-12-162022-01-13
JPMJpmorgan Chase & Co
80
$501.50B2.20%24.00%$1.0000$3.7049%02021-10-31
JNJJohnson & Johnson
80
$431.04B2.53%60.70%$1.0600$4.1456%02021-11-222021-12-07
UNHUnitedhealth Group Inc
80
$427.59B1.19%33.90%$1.4500$5.4026%0
VVisa Inc
60
$419.34B0.59%25.40%$0.3200$1.2810%02021-11-102021-12-07
WMTWalmart Inc
80
$411.39B1.48%61.30%$0.5500$2.1934%02021-12-092022-01-03
BACBank Of America Corp
80
$395.84B1.59%23.90%$0.2100$0.7536%02021-12-022021-12-31
HDHome Depot Inc
80
$392.93B1.73%44.10%$1.6500$6.4540%0
PGPROCTER & GAMBLE Co
80
$343.22B2.40%58.80%$0.8698$3.4053%02021-11-15
ASMLAsml Holding Nv
40
$335.14B0.41%21.00%$1.8864$3.306%22021-11-022021-11-12
MAMastercard Inc
60
$331.28B0.52%23.80%$0.4400$1.768%02021-11-09
XOMExxon Mobil Corp
80
$271.50B5.43%-111.90%$0.8700$3.4886%0
ORCLOracle Corp
60
$262.95B1.25%23.10%$0.3200$1.2028%1
NKENIKE Inc
60
$256.97B0.68%28.50%$0.2750$1.1012%0
NVONovo Nordisk A S
60
$243.15B1.43%48.10%$0.5571$1.5132%7
PFEPfizer Inc
80
$240.92B3.61%65.70%$0.3900$1.5574%02021-11-042021-12-06
TMOThermo Fisher Scientific Inc
60
$240.89B0.16%4.40%$0.2600$1.002%0
CMCSAComcast Corp
80
$240.69B1.87%35.40%$0.2500$0.9843%0
KOCoca Cola Co
80
$239.66B3.01%89.20%$0.4200$1.6765%02021-11-302021-12-15
LLYELI LILLY & Co
80
$239.31B1.32%50.10%$0.8500$3.2930%02021-11-122021-12-10
CSCOCisco Systems Inc
80
$236.95B2.62%58.20%$0.3700$1.4758%0
ACNAccenture plc
40
$232.70B1.02%38.80%$0.9700$3.6122%12021-11-15
ABTAbbott Laboratories
40
$226.41B1.41%47.90%$0.4500$1.8032%12021-11-15
PEPPepsico Inc
80
$222.07B2.61%71.10%$1.0750$4.2057%0
DHRDanaher Corp
40
$218.12B0.27%10.10%$0.2100$0.814%12021-10-29
VZVerizon Communications Inc
100
$217.90B4.79%47.30%$0.6400$2.5283%02021-11-01
CVXChevron Corp
80
$216.73B4.69%277.10%$1.3400$5.2683%0
COSTCostco Wholesale Corp
40
$216.10B2.65%114.90%$0.7900$12.9858%42021-10-282021-11-12
AVGOBroadcom Inc
60
$215.32B2.75%99.40%$3.6000$14.4060%0
MRKMerck & Co Inc
60
$206.41B3.19%116.40%$0.6500$2.6067%0
WFCWells Fargo & Company
40
$205.53B1.00%11.40%$0.2000$0.5021%22021-11-042021-12-01
RDS.ARoyal Dutch Shell plc
20
$195.07B2.99%-23.50%$0.4800$1.4964%1
INTCIntel Corp
80
$194.77B2.87%26.50%$0.3475$1.3762%02021-11-042021-12-01
ABBVAbbVie Inc
80
$191.56B4.80%138.40%$1.3000$5.2083%02021-11-15
MSMorgan Stanley
80
$185.87B1.72%22.90%$0.7000$1.7539%02021-10-282021-11-15
NVSNovartis Ag
80
$185.07B4.08%77.50%$3.3784$3.3878%3
UPSUnited Parcel Service Inc
80
$184.84B1.92%58.50%$1.0200$4.0744%0
MCDMcdonalds Corp
80
$181.27B2.13%55.40%$1.2900$5.1648%02021-11-302021-12-15
TAT&T Inc
80
$178.93B8.30%-693.30%$0.5200$2.0893%02021-11-01
SAPSap Se
60
$177.99B1.51%32.70%$2.1890$2.1934%4
TXNTexas Instruments Inc
80
$172.79B2.18%51.60%$1.0200$4.0849%02021-10-292021-11-15
INTUIntuit Inc
60
$167.44B0.40%38.60%$0.6800$2.456%0
NEENextera Energy Inc
60
$166.80B1.77%124.60%$0.3850$1.5141%0
MDTMedtronic plc
80
$164.86B1.98%82.30%$0.6300$2.4244%0
LINLinde Plc
40
$164.72B1.30%64.20%$1.0600$4.1429%02021-12-022021-12-17
BHPBHP Group Ltd
60
$164.54B14.42%359.70%$4.0000$8.0498%5
AZNAstrazeneca Plc
20
$162.08B2.27%97.20%$0.4500$1.4051%10
LOWLowes Companies Inc
80
$160.49B1.21%26.60%$0.8000$2.8027%02021-11-03
UNPUnion Pacific Corp
80
$153.89B1.70%43.50%$1.0700$4.0839%0
SCHWSchwab Charles Corp
60
$153.21B0.89%22.60%$0.1800$0.7218%02021-11-102021-11-26
RYRoyal Bank Of Canada
60
$150.86B3.25%66.80%$0.8734$3.4468%22021-11-24
HONHoneywell International Inc
80
$148.51B1.72%47.30%$0.9300$3.7240%02021-11-102021-12-03
QCOMQualcomm Inc
80
$147.99B2.03%32.40%$0.6800$2.6645%02021-12-012021-12-16
PMPhilip Morris International Inc
100
$147.70B5.11%84.30%$1.2500$4.8585%0
CCitigroup Inc
80
$142.50B2.90%21.10%$0.5100$2.0462%02021-10-292021-11-24
ULUnilever Plc
60
$140.77B3.77%74.50%$0.5031$2.0275%1
BLKBlackRock Inc
60
$139.60B1.75%43.10%$4.1300$16.0240%1
GSGoldman Sachs Group Inc
80
$138.54B1.40%9.00%$2.0000$5.7532%02021-12-012021-12-30
AXPAmerican Express Co
60
$137.89B0.97%18.00%$0.4300$1.7220%02021-11-10
HDBHdfc Bank Ltd
40
$137.88B0.70%22.00%$0.2632$0.5313%1
SBUXStarbucks Corp
80
$133.84B1.59%73.30%$0.4500$1.8036%02021-11-102021-11-26
TTETotalEnergies SE
60
$133.77B6.31%-108.30%$0.7833$3.1889%6
RTXRaytheon Technologies Corp
60
$133.45B2.21%84.90%$0.5100$1.9750%12021-11-182021-12-16
TDToronto Dominion Bank
40
$131.85B3.46%58.90%$0.6268$2.5171%22021-10-31
AMTAmerican Tower Corp
40
$129.91B1.76%97.60%$1.3100$5.0340%1
DEODiageo Plc
60
$127.21B2.01%59.00%$2.4803$4.0145%9
HSBCHsbc Holdings Plc
20
$125.90B3.62%110.50%$0.3500$1.1074%10
BMYBristol Myers Squibb Co
60
$125.39B3.47%-82.70%$0.4900$1.9671%02021-11-01
TGTTarget Corp
80
$125.20B1.15%23.20%$0.9000$2.9425%02021-11-162021-12-10
SNYSanofi
80
$123.99B3.85%29.60%$1.9061$1.9176%2
AMATApplied Materials Inc
60
$119.33B0.70%15.80%$0.2400$0.9212%02021-11-242021-12-16
ELEstee Lauder Companies Inc
40
$117.55B0.65%26.20%$0.5300$2.1211%1
AMGNAmgen Inc
80
$117.31B3.33%67.90%$1.7600$6.8869%02021-11-152021-12-08
CVSCVS HEALTH Corp
80
$116.24B2.27%36.60%$0.5000$2.0051%02021-11-01
GEGeneral Electric Co
0
$114.04B0.24%-74.40%$0.0800$0.253%2
IBMInternational Business Machines Corp
80
$112.19B5.22%109.40%$1.6400$6.5486%02021-11-092021-12-10
SPGIS&P Global Inc
40
$111.49B0.64%25.60%$0.7700$2.9811%12021-11-242021-12-10
CATCaterpillar Inc
80
$107.38B2.18%52.20%$1.1100$4.2849%02021-11-19
PLDPrologis Inc
60
$106.36B1.72%92.90%$0.6300$2.4739%0
ANTMAnthem Inc
60
$105.26B1.00%19.20%$1.1300$4.3421%02021-12-022021-12-21
DEDeere & Co
60
$104.87B1.07%19.10%$1.0500$3.6123%02021-11-08
BPBp Plc
40
$104.61B4.35%-26.10%$0.3276$1.2781%1
MMM3M Co
80
$102.71B3.32%57.40%$1.4800$5.9169%0
SYKStryker Corp
60
$101.25B0.94%44.50%$0.6300$2.5219%02021-10-29
GSKGlaxosmithkline Plc
40
$101.21B5.40%91.70%$0.5301$2.1886%10
COPConocophillips
20
$99.67B2.35%148.30%$0.4600$1.7553%12021-12-01
ZTSZoetis Inc
60
$99.33B0.36%23.60%$0.2500$0.755%02021-10-282021-12-01
BUDAnheuser-Busch InBev SA
20
$96.80B1.04%20.70%$0.5964$0.6022%8
INFYInfosys Ltd
60
$96.08B1.77%58.70%$0.1990$0.4041%9
CNICanadian National Railway Co
80
$93.94B1.46%36.00%$0.4903$1.9333%02021-12-082021-12-30
ADPAutomatic Data Processing Inc
80
$93.90B1.68%60.70%$0.9300$3.7238%0
BXBlackstone Inc
60
$93.63B2.21%46.50%$0.7000$3.0250%152021-10-292021-11-08
BAMBrookfield Asset Management Inc
20
$91.67B0.84%-408.30%$0.1300$0.5117%1
LMTLockheed Martin Corp
80
$91.27B3.14%47.80%$2.6000$10.4067%02021-11-302021-12-27
PNCPnc Financial Services Group Inc
80
$90.49B2.25%35.60%$1.2500$4.8051%02021-11-05
PTRPetrochina Co Ltd
40
$89.77B6.82%142.80%$2.0101$3.3590%7
USBUs Bancorp
80
$89.37B2.85%36.00%$0.4600$1.7262%0

Find the Best Dividend Paying Stocks to Buy and Hold (For the Long Term)

Dividend stocks have a reputation among the investing public as safe, reliable, and yes, boring investments.

The famous dividend aristocrats list - a list of companies in the S&P 500 with 25+ years of consecutive dividend increases, are generally considered stable, safe companies.

However, just because a company is generating dividends, doesn't necessarily make it a safe investment.

In this article, you will learn:

  • Why high dividend yield is not necessarily good
  • How to avoid dividend traps
  • What to look for in long-term dividend stocks

Before we dive into finding the best dividend paying stocks for the long term, let's step back and examine why some companies offer higher dividends than others in the first place.

Why Do Some Dividend Paying Stocks Offer Higher Yields Than Others?

A high dividend yield may be a reflection of a company's mature status.

Some large, established businesses may find it difficult to identify enough growth investments to efficiently deploy their profits. In such a case, management often returns profits to shareholders in the form of dividends.

A good example of this would be telecommunications and utility companies.

In other instances, the business structure of a company itself may require the company to distribute the majority of their cash flow to investors for tax purposes, as is the case with REITs (real estate investment trusts). REITs were created in the 1960s as a tax-efficient vehicle to fund the growth of American real estate. These entities are not required to pay federal income tax, provided they payout 90%+ of their income as dividends.

Unfortunately, boosting dividend yields can also be a way for management to pacify frustrated investors when the stock isn't performing. As you can imagine, this almost never works out well - the temporary yield boost can make the stock look tempting at first, but as profits drop and the struggling company's financial woes deepen, these unsustainable payouts eventually get cut. This can be a dangerous trap for dividend investors seeking yield.

To avoid these so-called "dividend traps", it's important to understand the overall health of a company, and also how dividends fit into management's overall corporate strategy.

Why High Yield Is Not Always Good

Investors nearing retirement are attracted to high dividend stocks because of the generous passive income they can provide.

The highest paying dividend stocks can offer a yield greater than 4% a year, and some high dividend paying stocks even yield more than 10% a year.

However, not all high yield dividend stocks are safe. The best dividend stocks to buy and hold not only pay a high dividend yield (anything above 4% can be considered high), but also show indicators of dividend stability, dividend growth, and a sustainable earnings stream that can support their dividend payouts.

Furthermore, it's important to consider dividend yield in conjunction with a stock's overall value. After all, dividends are just a percentage of a company's profits being paid out to owners (shareholders) - when you use a dividend screener to screen companies based solely on dividend yield, you'll see that many of these companies are not necessarily top performers in the long term.

The best dividend paying stocks for the long term pay a stable, steady dividend built on a foundation of healthy earnings and a strong balance sheet.

Dividend Payout Ratio

One of the key factors in determining whether a company can sustain their dividend payout is whether the company is generating sufficient earnings. The dividend payout ratio is a metric that tracks the percentage of a company's earnings being paid out as a dividend.

It is a key metric to watch if you're looking for the best long term dividend stocks, since it is a sign that the dividend paying company has the necessary profits to support future dividend payments.

Here at WallStreetZen, we run an automated due diligence check that fails when a company pays out more than 90% of its earnings as a dividend. However, conservative dividend investors may want to see a dividend payout ratio in the 50% range, meaning the company only pays out half of its earnings as a dividend.

The dividend payout ratio you'd want to target really depends on your risk tolerance and personal goal as an investor. A retiree who is entirely dependent on their dividends for living expenses may want to target a more conservative payout ratio, while for a younger investor who only has a chunk of their portfolio set aside for dividend stocks, a 90% payout ratio may be a good benchmark.

Is the Dividend Stable?

While past performance does not always equal future performance, a company that has a long history of stable dividend payouts is generally a better dividend stock for a long-term buy and hold than one that has gone up and down over time.

Here at WallStreetZen, we run an automated due diligence check that checks how many times a company's stock has dropped over the past 10 years. If it has dropped at any point, it fails the check.

How Risky Is the Stock?

Some other important risk factors to consider when evaluating a dividend stock for the long-term are the amount of debt on the balance sheet, the leverage inherent in the business model, the size of the company, and the valuation multiple.

At WallStreetZen, we run due diligence checks that analyze a company's financials and valuation, you can learn more about our process for automating fundamental analysis checks here.

Don't Over Concentrate Your Portfolio Chasing Dividend Yields

Finally, dividend investors should also be wary of overconcentration in their portfolio.

Because certain sectors such as utilities, energy trusts and REITs tend to produce companies with high yield dividends, a dividend investor's portfolio can become overweighted in these sectors over time if they focus solely on finding the best dividend paying stocks to buy and hold, without considering other factors.

It's important for dividend investors to maintain a balanced portfolio that focuses on dividend growth and yield, but also continue to pay attention to traditional investing priorities such as diversification.

While building your dividend portfolio, keep in mind these 4 important factors that will affect the volatility of your holdings:

  1. number of holdings
  2. correlation between holdings (industry diversification)
  3. leverage that each holding has (higher leverage means more volatility)
  4. market cap of each holding (smaller companies tend to be more volatile)

Don't Invest in Dividend Paying Stocks You Don't Understand

Like with any investment, it should go without saying that you shouldn't invest in anything you don't understand.

If a dividend stock has a high yield but you don't understand the business, keep in mind Warren Buffett's mental model of staying within one's circle of competence.

Keeping this maxim in mind will serve you well in your search for the best dividend paying stocks to buy and hold - for the long term.

WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.