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All three of these companies are well established, with solid growth prospects.
Each faces some struggles, but all are paying shareholders to wait for stronger results.
Dividend-paying stocks can really boost an individual investor's portfolio.
If you're in the market for some no-brainer dividend stocks, I have some good and less-good news for you. The good news is that investing in healthy and growing dividend-paying stocks is a solid, no-brainer move -- because dividend payers can be powerful investments. Unfortunately, though, hardly any stock qualifies as a no-brainer investment.
For best results, use your brain to follow and keep up with any companies in which you invest. Here are a handful of solid dividend-paying contenders for your long-term portfolio.
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Image source: Getty Images.
First, though, just in case you're not fired up about dividend-paying stocks, check out the table below -- as it might surprise you.
|
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 stocks are not just for your grandparents. Their solid performance shouldn't be surprising, either, because for a company's management to feel secure about committing to an ongoing dividend payment, the company typically needs to have grown to a certain size with fairly reliable income. Here are some promising dividend payers to consider.
According to our Motley Fool Money research, the best high-yield savings accounts offered interest rates of around 4% to 4.3% in January. Invest in shares of Pfizer (NYSE: PFE), though, and you're looking at a fat dividend yield of, recently, 6.81%!
The stock has been in a slump in recent years in part due to shrunken demand for its COVID-19 vaccine and COVID-19 treatment, Paxlovid, as well as the expirations of patent protection for several key drugs. But the company has a lot more going on than that -- such as some investments that can result in an approved GLP-1 weight-loss drug for Pfizer.
Pfizer's stock is enticing, too, with a recent forward-looking price-to-earnings (P/E) ratio of 8.5, well below its five-year average of 9.8.
Verizon Communications (NYSE: VZ) sports a dividend recently yielding even more than Pfizer: 6.93%! Better still, Verizon has been increasing its payout for 19 years in a row (though generally not with huge increases).
If you're looking for a fast grower, look elsewhere. Verizon is a cash cow, though, collecting gobs of recurring revenue from its 146 million-some wireless accounts (as of October 2025). It boasts more than a million miles of fiber and it covers 99% of the U.S. population with its 4G LTE network. Verizon was recently raking in more than $130 billion in annual profit and close to $20 billion in net income.
Verizon's stock is also appealingly priced, with a recent forward-looking price-to-earnings (P/E) ratio of 8.2, below its five-year average of 8.8.
Then there's United Parcel Service (NYSE: UPS), with a recent dividend yield of 6.1%. The company has been hurt as Amazon has been sending it far fewer packages to deliver, but UPS still has a lot going for it. For example, it sports a massive fleet of 500-plus aircraft and as of 2024, some 135,000 ground vehicles. Its nearly 500,000 employees delivered more than 22 million items in 2024 -- each day.
With a recent a recent forward-looking price-to-earnings (P/E) ratio of 14.7, a bit below its five-year average of 15.4, UPS' stock seems attractively priced. But do note that the company is facing some challenges, including slowing growth and shrinking profit margins. Management is aware of that, though, and is working on a turnaround, in part by cutting costs and adding more automation.
Any believers in UPS who buy now can enjoy a generous dividend payment every quarter while waiting for a turnaround. Given the significant dividend yields for each of these companies, and their chances to keep growing, they seem like some of the best dividend stocks to consider.
Before you buy stock in Pfizer, consider this:
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $474,578!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,628!*
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Selena Maranjian has positions in Amazon, Pfizer, and Verizon Communications. The Motley Fool has positions in and recommends Amazon, Pfizer, and United Parcel Service. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
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