The Best Dividend Stocks I'd Buy Right Now
Key Takeaways
Savvy investors know not to overlook the power of dividends. And Warren Buffett, arguably the savviest investor of all, appreciates dividends, too. (Ironically, though, his company, Berkshire Hathaway, doesn't yet...
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July 5, 2025
06:30 AM
The Motley Fool
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Savvy investors know not to overlook the power of dividends
And Warren Buffett, arguably the savviest investor of all, appreciates dividends, too. (Ironically, though, his company, Berkshire Hathaway, doesn't yet pay one. ) As of early this year, Berkshire Hathaway's investments in a handful of dividend-paying stocks were set to der some $4. 5 billion in dividend income
Here's a look at some mising dividend payers you might want to consider for your long-term stock portfolio
Some I already own, and the others I'm interested in buying at the moment, though things can change, of course
Whether you have $1,000 or $100,000 to invest, you might check some of these companies out
Image source: Getty Images
Pfizer Pfizer (PFE 0. 30%) is a dividend powerhouse, with a recent dividend yield of 7
That payout has been growing, too, with the recent total annual dividend of $1. 70 up from $1. 52 in 2020 and $1. 20 in 2016
The stock has been a poor performer in recent years, though, averaging annual gains of 1. 84% over the past decade and an average annual loss of 17. 71% over the past three years
Its future looks mising, though, as it has a big pipeline of drugs in development
And most or all of the pessimism surrounding it has already been factored into its low stock price
Its forward-looking price-to-earnings (P/E) ratio was recently 8. 3, well below its five-year average of 10
Caterpillar Caterpillar (CAT -0. 01%), a top maker of construction and mining equipment, sports a recent dividend yield of 1
That might not sound exciting, but it's well above the S&P 500's recent dividend yield of around 1
The company has been a solid long-term performer, too, with average annual gains of 17. 6% over the past decade
And its dividend has been growing, with its recent total annual payout of $5. 64 up from $4. 28 in 2021 and $3. 28 in 2018
United Parcel Service United Parcel Service (UPS -1. 16%) recently sported a hefty dividend yield of 6. 5% -- and it's been growing, too, albeit not rapidly in the last year or two
Still, the total recent payout of $6. 54 is up from $3. 64 in 2018
The stock hasn't been growing rapidly lately, either, with an average annual gain of 4. 24% over the past decade
Still, for those seeking income, the stock is paying generously while also growing in value
The continued growth of e-commerce bodes well for UPS, though our current uncertain economic environment isn't helping -- and Amazon is reducing the portion of its packages it sends via UPS
Chevron Chevron (CVX 0. 34%), with a recent dividend yield of 4. 78%, is looking good, too
Its dividend has been growing, up from a total annual payout of $4. 76 in 2019 to $6. 68 recently
Its stock's growth has been impressive over the past five years, averaging 14. 2% annually, but that average is just 7. 1% over the past decade
Still, bulls the stock in part for its significant buybacks, which der value for holders, and also for how it's diversified and built to last, involved in ducing energy, pipeline operations, chemicals, and refining, among other things
Consider some dividend-focused ETFs, too These dividend-paying stocks are well worth considering, but you might want to consider in some dividend-focused exchange-traded funds (ETFs), too
ETFs are funds that trade stocks, and many are index funds, too, some focused on generating income for their holders
Here are a few you might look into further: ETF Recent Yield 5-Year Avg
Annual Return 10-Year Avg
Annual Return is Preferred & Income Securities ETF (NASDAQ: PFF) 6. 21% Schwab U
Dividend Equity ETF (NYSEMKT: SCHD) 3. 92% Fidelity High Dividend ETF (NYSEMKT: FDVV) 3. 91% N/A Vanguard High Dividend Yield ETF (NYSEMKT: VYM) 2. 08% Data source: Yahoo
Finance and Morningstar
Com, as of June 24, 2025
However you do it, having some healthy and growing dividend-payers in your portfolio is ly to pay off
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors
Selena Maranjian has positions in Amazon, Berkshire Hathaway, Pfizer, and Schwab U
The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Chevron, Pfizer, United Parcel Service, and Vanguard Whitehall Funds - Vanguard High Dividend Yield ETF
The Motley Fool has a disclosure policy.
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