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Globe and Mail
05-08-2025
- Business
- Globe and Mail
3 Ultra-High-Yield Dividend Stocks -- Sporting an Average Yield of 6.72% -- That Make for No-Brainer Buys in August
Key Points Dividend stocks have handily outperformed nonpayers over the past half-century. Though high-octane income stocks require some extra vetting, true gems can be found. Three supercharged dividend stocks -- with yields ranging from 5.8% to 7.4% -- are ripe for the picking by opportunistic income seekers. 10 stocks we like better than Enterprise Products Partners › Over the last century, no asset class has generated a higher average annualized return for investors than stocks. Though there are countless way for investors to put their money to work on Wall Street, few have been as historically successful as buying and holding high-quality dividend stocks. Companies that pay a regular dividend to their shareholders typically check all the right boxes. Specifically, they tend to be profitable on a recurring basis, they're time-tested, and they're able to provide transparent growth guidance. But what investors tend to love most about dividend stocks is their ability to run circles around nonpayers. In The Power of Dividends: Past, Present, and Future, the researchers at Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks averaged a 9.2% annual return between 1973 and 2024, and did so while being less volatile than the benchmark S&P 500. In comparison, nonpayers delivered a more modest annualized return of 4.31% over 51 years and were more volatile than Wall Street's encompassing stock index. However, no two dividend stocks are alike. Although ultra-high-yield dividend stocks -- those with yields four or more times greater than the yield of the S&P 500 -- require more vetting, income gems can be found. What follows are three ultra-high-yield dividend stocks, sporting an average yield of 6.72%, which make for no-brainer buys in August. Enterprise Products Partners: 7.03% yield The first ultra-high-yielding stock that's begging to be bought is energy giant Enterprise Products Partners (NYSE: EPD). Enterprise has raised its payout in each of the last 27 years and is currently topping a 7% yield. Admittedly, some investors are going to be skeptical about putting their money to work in energy stocks given variables such as geopolitical tensions in the Middle East, as well as the uncertainty created by President Trump's tariff and trade policy. The spot price for crude oil has been trending low for much of the last year. However, Enterprise Products Partners has avoided much of this pain thanks to its operating model. It's a midstream company, which is a fancy way of saying that it transports and stores oil and natural gas for drilling companies. Being an energy middleman comes with a huge perk: cash flow predictability. An overwhelming majority of the multiyear contracts Enterprise has locked in with upstream drilling companies are fixed fee in nature. This removes all aspects of inflation and spot-price volatility from the equation and allows Enterprise to accurately forecast its cash flow from operations one or more years in advance. Cash flow transparency is vital to energy companies -- especially those that tend to make bolt-on acquisitions or undertake a multitude of projects, like Enterprise Products Partners. It has more than a half-dozen major projects under construction, totaling $5.6 billion in expenditures. These projects, which are prominently focused on expanding its liquified natural gas exposure, should all be operational by the end of 2026 and are expected to be accretive to the company's cash flow. Best of all, Enterprise Products Partners' stock remains reasonably priced. Despite this being the third-priciest stock market on record, Enterprise's forward price-to-earnings (P/E) ratio of 10.5 is roughly in-line with its trailing-five-year average forward P/E. Pfizer: 7.39% yield A second stellar ultra-high-yield stock that stands out for all the right reasons in August is pharmaceutical pillar Pfizer (NYSE: PFE). Due to weakness in its shares over the last three years, its yield has soared to almost 7.4%. But keep in mind that management is confident this payout is sustainable. As I've stated previously, Pfizer stock has been punished for the company's overwhelming success during the COVID-19 pandemic. Its ability to develop a vaccine (Comirnaty) and oral therapy (Paxlovid) led to more than $56 billion in combined COVID-19 therapy sales in 2022. Last year, sales tumbled to $11 billion, combined, from these two drugs, and revenue is likely to fall further this year. But if investors widen their lens to just the last four years, they can see how far Pfizer has come as a company. Excluding COVID-19 therapies, net sales have been organically growing. Further, total sales, including COVID-19 treatments, surged by 52% between 2020 and 2024. Pfizer has become a stronger and more diversified drugmaker, yet its share price has materially weakened. This price dislocation offers an opportunity for investors to pounce. On top of organic growth, Pfizer made a splash with its $43 billion all-share buyout of cancer-drug developer Seagen in December 2023. This deal added more than $3 billion in annual sales, as well as provided a pathway for significant cost synergies in the years following its completion. Most importantly, it vastly expands Pfizer's cancer drug pipeline. To build on this previous point, management is trimming the fat companywide. Collective cost savings by the end of this year, inclusive of Pfizer's manufacturing optimization program, should total $4.5 billion. This is expected to have a notably positive impact on earnings per share. Rounding things out, the valuation makes sense. Pfizer's forward P/E of 7.5 equates to a 26% discount to its average forward P/E over the last half-decade. Realty Income: 5.75% yield The third ultra-high-yield dividend stock that makes for a no-brainer buy in August is none other than the premier retail real estate investment trust (REIT), Realty Income (NYSE: O). Known as "The Monthly Dividend Company," Realty Income has increased its payout 131 times over the past three decades and is currently yielding close to 5.8%! Considering how much uncertainty exists with regard to President Trump's tariff and trade policy, it's understandable if some investors are leery of stocks that have anything to do with retail. But Realty Income is a different breed of company that can transcend a lot of these concerns. When the March quarter came to a close, it had more than 15,600 commercial real estate (CRE) properties in its portfolio. Per the company, 91% of the total rent derived from these CRE assets is "resilient to economic downturns and/or isolated from e-commerce pressures." Realty Income prominently leases to stand-alone businesses that drive foot traffic in any economic climate. Think grocery stores, drugstores, dollar stores, and auto repair chains, among other relatively recession-resistant retailers. Leasing to brand-name, time-tested companies is a key reason its rental delinquency rate has remained minimal. Additionally, Realty Income tends to lock in its customers for the long-term, with its weighted-average lease length clocking in at 9.1 years. Long initial lease terms, coupled with careful vetting and the smart dispositions of CRE assets, has kept its occupancy rate consistently higher than its peers. Keeping with the theme, Realty Income stock is historically inexpensive at the moment. It's trading at 12.4 times estimated cash flow for 2026, which works out to a 22% discount to its average multiple to cash flow over the past five years. Should you invest $1,000 in Enterprise Products Partners right now? Before you buy stock in Enterprise Products Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enterprise Products Partners wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
02-08-2025
- Business
- Yahoo
1 Top Dividend ETF I Can't Wait to Buy More of in August
Key Points The Schwab U.S. Dividend Equity ETF holds 100 top dividend stocks. The fund offers a blend of yield and income. It has produced strong total returns over the long term. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › Dividend stocks are powerful investments. They've outperformed nonpayers by more than two to one over the past 50 years. The strongest results come from companies that steadily increase their dividend payments. They've delivered a 10.2% average annualized return, according to Ned Davis Research and Hartford Funds. Invest in Gold American Hartford Gold: #1 Precious Metals Dealer in the Nation Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Thor Metals Group: Best Overall Gold IRA One of the easiest ways to capitalize on this powerful total return potential is to invest in an exchange-traded fund (ETF) that focuses on dividend-paying stocks, such as the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). Here's why I can't wait to buy more shares of this top dividend ETF this August. High-quality, high-yielding dividend stocks The Schwab U.S. Dividend Equity ETF employs a straightforward strategy to invest in dividend-paying stocks. Its goal is to closely track the Dow Jones U.S. Dividend 100 Index. That index aims to measure the performance of 100 top high-quality, high-yielding U.S. dividend stocks. It tracks companies that have consistent records of growing their dividends and strong financial profiles. The index screens for companies based on four dividend quality factors: Cash flow to total debt Return on equity Indicated dividend yield Five-year dividend growth rate These characteristics allow these companies to pay stable, rising dividends. At its annual reconstitution last March, the index's 100 holdings had an average dividend yield of 3.8%, and had increased their payouts at an average annual rate of 8.4% over the past five years. This blend of yield and growth positions the Schwab U.S. Dividend Equity ETF to deliver attractive total returns in the future. Cream of the dividend crop The Schwab U.S. Dividend Equity ETF is a who's who list of top-tier dividend stocks. Chevron (NYSE: CVX) currently clocks in as its top holding at 4.4% of its net assets. The oil giant has a 4.5% dividend yield, several times higher than the S&P 500's (SNPINDEX: ^GSPC) 1.2% yield, and has increased its dividend for 38 consecutive years (and by a peer-leading pace over the past decade). That spans multiple commodity price cycles, demonstrating the durability of its dividend. The oil company backs its high-yielding payout with the lowest production costs in the sector and one of its strongest balance sheets. Meanwhile, it has plenty of fuel to grow its dividend after closing its needle-moving Hess acquisition, which enhances and extends its growth outlook into the 2030s. PepsiCo (NASDAQ: PEP) is another top holding, at 4.2% of the fund's assets. The beverage and snacking giant currently has a 4% dividend yield. It raised its payment by 5% earlier this year, extending its growth streak to 53 years in a row. That keeps it in the elite group of Dividend Kings. The growing demand for its iconic brands, combined with acquisitions such as its recent deal for healthier soda brand Poppi, should support continued dividend growth. Strong returns SCHD's portfolio of high-quality, high-yielding dividend stocks has delivered strong returns for investors. The fund has paid a steadily rising dividend as the companies it holds increase their payouts: The fund's high-yielding and steadily rising payout has really added to its returns over the years. The Schwab U.S. Dividend Equity ETF has delivered double-digit annualized total returns over the past five- and 10-year periods, producing an 11.5% annualized total return since its inception in late 2011. The ETF currently offers investors a dividend yield of around 3.8% -- more than three times higher than the S&P 500. This should provide a strong and growing base return as its holdings increase their dividend payments. Meanwhile, growing earnings from the fund's companies should support continued growth in the fund's value. A top-tier dividend ETF The Schwab U.S. Dividend Equity ETF holds 100 of the best dividend-paying stocks in the country. These companies pay high-yielding and steadily rising dividends supported by high-quality financial profiles. These features put the fund in a strong position to continue delivering robust returns for investors. That's why I can't wait to buy more shares this month. Should you invest $1,000 in Schwab U.S. Dividend Equity ETF right now? Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Matt DiLallo has positions in Chevron, PepsiCo, and Schwab U.S. Dividend Equity ETF. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy. 1 Top Dividend ETF I Can't Wait to Buy More of in August was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
01-08-2025
- Business
- Globe and Mail
Want Decades of Passive Income? Buy This Index Fund and Hold It Forever.
Key Points There are many forms of passive income. Investing in dividend-paying stocks is a particularly effective form. This ETF makes it easy -- and it's recently yielding a hefty 3.9%. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › It's hard to beat passive income. Set up your investments and then money flows to you regularly, without your having to do any, or much, work. There are many forms of passive income, too, such as rent checks from properties you own, interest payments from savings accounts or bonds you own, royalties from books you wrote, and dividend income from dividend-paying stocks or dividend-focused exchange-traded funds (ETFs) you own. Here's a look at a particularly attractive way to collect passive income: the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). As an ETF, it's a fund that trades like a stock. And it offers not only dividend income but growing dividend income and the likelihood of its component holdings growing in value over time as well. Why dividends? In case you're not yet sold on the power of dividend investing, check out the table below: Dividend-Paying Status Average Annual Total Return, 1973-2024 Dividend growers and initiators 10.24% Dividend payers 9.20% No change in dividend policy 6.75% Dividend non-payers 4.31% Dividend shrinkers and eliminators (0.89%) Equal-weighted S&P 500 index 7.65% Data source: Ned Davis Research and Hartford Funds. See? Dividend-paying stocks are not boring investments made by grandparents. They're suitable for all kinds of investors, and they perform rather well, too. That's partly because a company has to grow enough to have fairly dependable income before it will commit to paying a regular dividend. A passive-income winner: The Schwab U.S. Dividend Equity ETF There are lots of dividend-focused ETFs, so what's so great about the Schwab US Dividend Equity ETF? Well, while some dividend ETFs deliver lots of income but relatively little growth, and others are strong growers but don't offer that much income, this ETF strikes a nice balance between the two. The Schwab US Dividend Equity ETF recently sported a very solid dividend yield of 3.9%. It tracks the Dow Jones U.S. Dividend 100 Index, which is "designed to measure the performance of high-dividend-yielding stocks in the U.S. with a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios." As an index fund, it aims to deliver roughly the same return as the index it tracks, less its fees, which are rather puny. The ETF's expense ratio (annual fee) is 0/06%, meaning that you'll fork over $6 per year for every $10,000 you have invested in the ETF. What's in the Schwab U.S. Dividend Equity ETF? Here are the ETF's recent top 10 holdings: Stock Weight in ETF Recent yield Texas Instruments 4.35% 2.53% Chevron 4.22% 4.56% PepsiCo 4.16% 3.90% Cisco Systems 4.11% 2.41% ConocoPhillips 4.10% 3.36% Amgen 3.99% 3.11% Merck 3.92% 3.97% Altria Group 3.84% 6.86% AbbVie 3.82% 3.51% Verizon Communications 3.80% 6.31% Source: as of July 22, 2025. You can see that these 10 (out of about 100) holdings, which together make up around 40% of the ETF's value, pay meaningful dividends. And as long as they remain healthy and growing, they're likely to increase their payouts over time. For context, note that the S&P 500 index recently yielded 1.23%. How has the Schwab U.S. Dividend Equity ETF performed? Finally, here's a look at how the ETF has performed in the past. I'll include the S&P 500's performance for comparison, using the Vanguard S&P 500 ETF (NYSEMKT: VOO): Fund 3-year average annual gain 5-year average annual gain 10-year average annual gain Schwab U.S. Dividend Equity ETF 8.14% 12.54% 11.39% Vanguard S&P 500 ETF 18.49% 15.69% 13.51% Source: as of July 22, 2025. You can see that, on average, investors are likely to see their money grow faster in a low-fee S&P 500 index fund, but it's not going to produce nearly as much income as the Schwab ETF. Some investors may want to park a portion of their long-term portfolio in each of the ETFs. Either or both will deliver decades of passive income, though one will deliver more. Should you invest $1,000 in Schwab U.S. Dividend Equity ETF right now? Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Selena Maranjian has positions in AbbVie, Altria Group, Amgen, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends AbbVie, Amgen, Chevron, Cisco Systems, Merck, Texas Instruments, and Vanguard S&P 500 ETF. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
Yahoo
27-07-2025
- Business
- Yahoo
Want Decades of Passive Income? Buy This Index Fund and Hold It Forever.
Key Points There are many forms of passive income. Investing in dividend-paying stocks is a particularly effective form. This ETF makes it easy -- and it's recently yielding a hefty 3.9%. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › It's hard to beat passive income. Set up your investments and then money flows to you regularly, without your having to do any, or much, work. There are many forms of passive income, too, such as rent checks from properties you own, interest payments from savings accounts or bonds you own, royalties from books you wrote, and dividend income from dividend-paying stocks or dividend-focused exchange-traded funds (ETFs) you own. Here's a look at a particularly attractive way to collect passive income: the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). As an ETF, it's a fund that trades like a stock. And it offers not only dividend income but growing dividend income and the likelihood of its component holdings growing in value over time as well. Why dividends? In case you're not yet sold on the power of dividend investing, check out the table below: Dividend-Paying Status Average Annual Total Return, 1973-2024 Dividend growers and initiators 10.24% Dividend payers 9.20% No change in dividend policy 6.75% Dividend non-payers 4.31% Dividend shrinkers and eliminators (0.89%) Equal-weighted S&P 500 index 7.65% Data source: Ned Davis Research and Hartford Funds. See? Dividend-paying stocks are not boring investments made by grandparents. They're suitable for all kinds of investors, and they perform rather well, too. That's partly because a company has to grow enough to have fairly dependable income before it will commit to paying a regular dividend. A passive-income winner: The Schwab U.S. Dividend Equity ETF There are lots of dividend-focused ETFs, so what's so great about the Schwab US Dividend Equity ETF? Well, while some dividend ETFs deliver lots of income but relatively little growth, and others are strong growers but don't offer that much income, this ETF strikes a nice balance between the two. The Schwab US Dividend Equity ETF recently sported a very solid dividend yield of 3.9%. It tracks the Dow Jones U.S. Dividend 100 Index, which is "designed to measure the performance of high-dividend-yielding stocks in the U.S. with a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios." As an index fund, it aims to deliver roughly the same return as the index it tracks, less its fees, which are rather puny. The ETF's expense ratio (annual fee) is 0/06%, meaning that you'll fork over $6 per year for every $10,000 you have invested in the ETF. What's in the Schwab U.S. Dividend Equity ETF? Here are the ETF's recent top 10 holdings: Stock Weight in ETF Recent yield Texas Instruments 4.35% 2.53% Chevron 4.22% 4.56% PepsiCo 4.16% 3.90% Cisco Systems 4.11% 2.41% ConocoPhillips 4.10% 3.36% Amgen 3.99% 3.11% Merck 3.92% 3.97% Altria Group 3.84% 6.86% AbbVie 3.82% 3.51% Verizon Communications 3.80% 6.31% Source: as of July 22, 2025. You can see that these 10 (out of about 100) holdings, which together make up around 40% of the ETF's value, pay meaningful dividends. And as long as they remain healthy and growing, they're likely to increase their payouts over time. For context, note that the S&P 500 index recently yielded 1.23%. How has the Schwab U.S. Dividend Equity ETF performed? Finally, here's a look at how the ETF has performed in the past. I'll include the S&P 500's performance for comparison, using the Vanguard S&P 500 ETF (NYSEMKT: VOO): Fund 3-year average annual gain 5-year average annual gain 10-year average annual gain Schwab U.S. Dividend Equity ETF 8.14% 12.54% 11.39% Vanguard S&P 500 ETF 18.49% 15.69% 13.51% Source: as of July 22, 2025. You can see that, on average, investors are likely to see their money grow faster in a low-fee S&P 500 index fund, but it's not going to produce nearly as much income as the Schwab ETF. Some investors may want to park a portion of their long-term portfolio in each of the ETFs. Either or both will deliver decades of passive income, though one will deliver more. Should you invest $1,000 in Schwab U.S. Dividend Equity ETF right now? Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Selena Maranjian has positions in AbbVie, Altria Group, Amgen, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends AbbVie, Amgen, Chevron, Cisco Systems, Merck, Texas Instruments, and Vanguard S&P 500 ETF. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy. Want Decades of Passive Income? Buy This Index Fund and Hold It Forever. was originally published by The Motley Fool
Yahoo
22-07-2025
- Business
- Yahoo
5 Brilliant Dividend Stocks to Buy Now and Hold for the Long Term
Key Points Dividend stocks offer a reliable income stream as companies distribute a portion of their profits to shareholders. Research indicates that companies that pay dividends tend to outperform those that do not over the long term, with lower volatility. Dividend companies tend to have strong business models, sound management, and a commitment to returning capital to shareholders. 10 stocks we like better than JPMorgan Chase › Looking for a way to boost your passive income? Dividend stocks might just be your golden ticket. Dividend-paying companies share a portion of their profits with shareholders, typically on a quarterly basis. Many investors find this appealing because it creates a steady passive income stream. But the benefits don't stop there! Dividend stocks often leave their non-dividend counterparts in the dust. Research from Hartford Funds reveals something remarkable: During a 50-year span, companies that pay dividends have outperformed those that don't, 9.2% to 4.3% on average annually, and they have also done so with less volatility. Ultimately, it boils down to this: Dividend-paying companies typically have effective business models, prudent capital management, and a strong commitment to rewarding their investors over the long term. Here are five quality dividend stocks that investors should consider adding to their portfolios today. JPMorgan Chase JPMorgan Chase (NYSE: JPM) is the largest U.S. bank by assets and has a long history of capital discipline and profitability. Under the leadership of Chief Executive Officer Jamie Dimon, who has led the bank since 2005, the bank has consistently outperformed peers. The bank has steadily increased its dividend during the past 15 years, boasting a current yield of nearly 2% and a low payout ratio, meaning there's room for future increases. Its strong capital position is reinforced by consistent results in Federal Reserve stress tests, allowing it to return capital to shareholders. It recently raised its dividend payout for the second time this year. Since the fourth quarter, the bank has increased its dividend payout by 20%. JPMorgan Chase offers stability, dividend growth potential, and a fortress-like balance sheet, making it an ideal core holding for dividend-focused investors seeking exposure to the financial sector. Ares Capital Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC) in the U.S. As a BDC, Ares Capital primarily focuses on providing debt financing to middle-market companies. Not only that, but BDCs are required to distribute at least 90% of their taxable income to shareholders, making them ideal for dividend investors. Ares stands out for its well-managed, diversified portfolio. It has a long history of strong underwriting and credit management processes, even during volatile periods such as the Great Recession from 2007 to 2009. Its portfolio spans hundreds of companies across various industries, reducing exposure to sector-specific downturns. As of March 31, its portfolio comprises 566 companies across numerous industries. Ares also benefits from rising interest rates, as many of its loans are floating-rate. At the end of the first quarter, 69% of the investments in its portfolio, valued at fair value, pay interest and dividends at floating rates. Ares Capital's dividend yield typically exceeds 9%, and it has also provided 15 years of stable or growing dividend payouts, showing its ability to reward shareholders over time. T. Rowe Price Group T. Rowe Price (NASDAQ: TROW) is a leading asset management firm recognized for its active investment strategies and strong long-term performance. The company has a solid track record. As of March 31, 61% of its U.S. mutual funds' assets under management (AUM) outperformed their Morningstar median during the past year, and 87% outperformed during the past 10 years. As a money manager, T. Rowe earns fees from managing its assets of more than $1.57 trillion, creating a stable and scalable earnings stream as markets grow in line with its AUM. This fee-based model also helps generate steady earnings, which is significant as the company looks to maintain and expand its payout. The asset management company's dividend yields about 5% and it has raised the dividend every year for 39 consecutive years. Aflac Aflac (NYSE: AFL) is a leading provider of supplemental health and life insurance, with a strong presence in Japan and the U.S. The company and its subsidiaries offer financial protection to policyholders, with a primary business focus on supplemental health and life insurance. Its emphasis on supplemental coverages aims to help consumers pay for medical and non-medical costs not covered by primary insurance, with a focus on products such as cancer, critical illness, accident, and hospital indemnity coverage. Its Japanese business accounts for more than half of its revenue, providing a steady, cash-generating base. Furthermore, with premium persistency at 93.8% in Japan during the past 12 months, the company demonstrates strong customer retention, a crucial indicator of customer satisfaction. Aflac has raised its dividend for over 42 consecutive years. The yield currently stands at 2.2% with a payout ratio of 31%, allowing room for continued increases. Aflac's conservative financial management, strong underwriting discipline, and stable cash-flow generation make it a reliable dividend stock. Marsh & McLennan Marsh & McLennan (NYSE: MMC) is a global leader in insurance brokerage, risk management, and consulting services through its Marsh, Mercer, Guy Carpenter, and Oliver Wyman brands. Marsh's dominance as an insurance broker positions it well to benefit from continued increases in insurance premiums, while Mercer's human capital consulting business adds a complementary revenue stream. As a fee-based business, Marsh avoids underwriting risk and instead generates steady, fee-based cash flows. The company operates a capital-light business, serving a diverse range of clients, including corporations, government entities, professional organizations, and individuals. Last year, the company generated $4 billion in free cash flow, and has increased this vital measure by 17% compounded annually since 2010. Marsh and McLennan has delivered consistent revenue and earnings growth during the past decade, increasing adjusted earnings per share for 17 consecutive years, enabling it to raise its dividend for 15 straight years. With a yield of about 1.5% backed by strong free cash flow, Marsh and McLennan is another solid dividend stock to consider today. Should you buy stock in JPMorgan Chase right now? Before you buy stock in JPMorgan Chase, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and JPMorgan Chase wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Courtney Carlsen has positions in JPMorgan Chase. The Motley Fool has positions in and recommends JPMorgan Chase and T. Rowe Price Group. The Motley Fool has a disclosure policy. 5 Brilliant Dividend Stocks to Buy Now and Hold for the Long Term was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
