In this article, we will take a look at some of the best dividend stocks to buy now.
Many investors lean toward income stocks because of their enduring appeal. Morgan Stanley has pointed out that dividends help investors remain committed during uncertain times. In a note dated August 14, strategist Todd Castagno observed that in periods of heightened risks and stretched valuations, dividends take on a bigger role in overall returns by easing volatility and offering some stability to share prices. He added that slower growth and falling interest rates also make reliable, higher-yielding dividends more attractive, particularly when cash and fixed income investments become less rewarding.
However, he cautioned that chasing the highest-yielding stocks may not be wise, since elevated payouts can sometimes signal trouble within a company. Instead, a growing number of investors prefer focusing on dividend growth. Castagno highlighted that Morgan Stanley’s research showed companies announcing dividend hikes tended to outperform by an average of 3.1% in the following six months. One way to ensure exposure to such names is through dividend aristocrats— S&P 500 firms that have raised their payouts consistently for at least 25 years.
Jack Ablin, chief investment strategist at Cresset, also underscored the importance of focusing on dividend growers, though he did not restrict himself to the aristocrats. He emphasized companies with long records of maintaining and expanding dividends, explaining that if payout ratios remain steady, earnings often grow faster than inflation. Ablin noted that his process goes beyond just reviewing cash flow. He also considers leverage ratios to gauge debt reliance, liquidity levels, and whether a company operates in less cyclical industries with solid margins. In his view, the goal is to identify businesses that can weather both downturns and expansions while sustaining their dividend policies.
Given this, we will take a look at some of the best dividend stocks that are cheap.
Our Methodology
For this list, we used a Finviz screener and identified dividend companies with forward P/E ratios below 20, as of September 19. The low price-to-earnings ratio shows that they are traded below their intrinsic value. From the resultant dataset, we selected 13 companies with strong dividend histories and solid balance sheets. The stocks are ranked according to their forward P/E ratios.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13. Applied Materials, Inc. (NASDAQ:AMAT)
Forward P/E as of September 19: 19.49
Applied Materials, Inc. (NASDAQ:AMAT) supplies equipment, software, and services that help manufacturers produce semiconductors and display panels. Its core offerings include systems for wafer fabrication, tools for display production, and a wide range of engineering support.
Applied Materials, Inc. (NASDAQ:AMAT)’s performance relies on several key factors. It needs to stay ahead in materials engineering, maintain strong ties with customers, manage its global supply chain effectively, adapt to regulatory changes, and continue investing in its workforce. In the third quarter, Applied Materials allocated $901 million to research and development, backing advancements in chip technologies such as gate-all-around transistors and next-generation memory.
On September 12, Applied Materials, Inc. (NASDAQ:AMAT) declared a quarterly dividend of $0.46 per share, which was in line with its previous dividend. Overall, the company has raised its payouts for eight years in a row, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 0.97%, as of September 19.
12. American Express Company (NYSE:AXP)
Forward P/E as of September 19: 19.46
American Express Company (NYSE:AXP) is one of the most well-known payment card brands, both in the US and globally. The company has built a massive customer base and operates a business that remains reliably profitable and steadily expanding.
Every Amex card benefits from the brand’s premium image. American Express Company (NYSE:AXP) reinforces this by offering some of the most attractive rewards and perks in the industry. Even its entry-level cards allow users to earn bonuses on travel, shopping, and other everyday spending. In the last five years, the company’s revenue has climbed sharply, rising from a little over $38 billion to above $74 billion. Even more impressive, net income has more than tripled during the same period, increasing from $3.1 billion to just over $10 billion.
American Express Company (NYSE:AXP) is a strong dividend company, making regular payments to shareholders for years. The company currently offers a quarterly dividend of $0.82 and has a dividend yield of 0.96%, as of September 19.
11. A. O. Smith Corporation (NYSE:AOS)
Forward P/E as of September 19: 17.30
A. O. Smith Corporation (NYSE:AOS) ranks among the biggest producers of residential and commercial water heaters, boilers, and water treatment systems in North America. Its products reach customers through an extensive distribution network, supported by long-standing partnerships such as its relationship with Lowe’s.
Currently, A. O. Smith Corporation (NYSE:AOS) is focused on strengthening its market position in North America, advancing energy-efficient technologies, and expanding its presence in international markets like China and India. Its long-term performance relies on controlling raw material costs, broadening its product lineup with innovations like high-efficiency water heaters, and sustaining strong distribution ties both at home and abroad.
A. O. Smith Corporation (NYSE:AOS) is one of the best dividend stocks with 32 consecutive years of dividend growth under its belt. The company currently offers a quarterly dividend of $0.34 per share and has a dividend yield of 1.86%, as of September 19.
10. Accenture plc (NYSE:ACN)
Forward P/E as of September 19: 16.98
Accenture plc (NYSE:ACN) is a multinational professional services company. The $150 billion firm delivers a wide array of technical and consulting services to help organizations expand, boost efficiency, integrate new technologies, and shape business strategies.
Accenture plc (NYSE:ACN) has proven itself to be a dependable long-term holding, consistently profitable every single quarter since its public debut in 2001. Over that period, annual net income has climbed from under $1 billion to nearly $8 billion today. Its dividend, first introduced in 2005, has also steadily grown alongside those rising profits.
Though Accenture plc (NYSE:ACN) does not hold any dividend growth streak, the company has offered regular payouts to shareholders since 2005. It currently offers a quarterly dividend of $1.48 per share and has a dividend yield of 2.47%, as of September 19.
9. Hormel Foods Corporation (NYSE:HRL)
Forward P/E as of September 19: 16.10
Hormel Foods Corporation (NYSE:HRL) is an American multinational food processing company. It operates through three main segments. Its retail arm includes well-known brands such as Planters, SPAM, Skippy, Herdez, Jennie-O, and Hormel. The foodservice division supplies products like pizza toppings and bacon to restaurants and other food outlets. The international business covers both global sales of its products and investments abroad.
Over time, Hormel Foods Corporation (NYSE:HRL) has been evolving from a primarily meat-focused company into a broader global branded food business, now generating more than $12 billion in annual revenue from over 40 worldwide brands.
Hormel Foods Corporation (NYSE:HRL) is also a solid dividend stock. The company is a Dividend King, having raised its payouts for 59 years in a row. Currently, it offers a quarterly dividend of $0.29 per share and has a dividend yield of 4.67%, as of September 19.
8. Consolidated Edison, Inc. (NYSE:ED)
Forward P/E as of September 19: 16.05
Consolidated Edison, Inc. (NYSE:ED) is an electric and gas utility serving the New York City region. Its operations provide dependable cash flow thanks to steady demand and regulated rates, allowing the company to sustain and gradually increase its dividend. This consistency makes it attractive to investors seeking reliable income.
Looking ahead, Consolidated Edison, Inc. (NYSE:ED) intends to invest $38 billion in its utility infrastructure through the end of the decade. These projects are expected to drive steady earnings growth, supporting ongoing increases to its dividend, which currently yields nearly 3.5%.
Consolidated Edison, Inc. (NYSE:ED) has been grabbing investors’ attention because of its strong dividend growth. The company has raised its dividends for 51 years in a row and maintained regular payouts since 1885. It currently pays a quarterly dividend of $0.85 per share.
7. The Goldman Sachs Group, Inc. (NYSE:GS)
Forward P/E as of September 19: 15.35
The Goldman Sachs Group, Inc. (NYSE:GS) is a global financial institution that delivers investment banking, securities, and asset management services. Its clients range from corporations and governments to institutions and high-net-worth individuals. The firm provides offerings such as strategic advisory, securities trading, transaction execution, and wealth management.
In recent years, The Goldman Sachs Group, Inc. (NYSE:GS) has focused on strengthening its Global Banking & Markets division, growing recurring fee income in Asset & Wealth Management, and controlling costs in a competitive environment. Its long-term performance relies on innovation and technology investment, with a particular focus on artificial intelligence, regulatory compliance, solid capital reserves, and disciplined risk management. These efforts aim to enhance client service, unlock opportunities in trading and advisory, and build more consistent revenue streams.
The Goldman Sachs Group, Inc. (NYSE:GS) is also notable for its dividend record, having made regular dividend payments since 1999 and currently pays a quarterly dividend of $4.00 per share. With a dividend yield of 1.99%, as of September 19, GS is among the best dividend stocks to buy now.
6. Becton, Dickinson and Company (NYSE:BDX)
Forward P/E as of September 19: 12.22
Becton, Dickinson and Company (NYSE:BDX), which positions itself as a medical technology company, is currently undergoing a turnaround. The business has faced challenges in recent years, including several strategic missteps and a large product recall.
More recently, Becton, Dickinson and Company (NYSE:BDX) has taken steps to reshape its operations. The company acquired the critical care product group from Edwards Lifesciences to strengthen its core business and announced plans to spin off its biosciences and diagnostic solutions division. That division is set to be purchased by Waters in a complex deal that is not expected to close until 2026.
Despite these transitions, Becton, Dickinson and Company (NYSE:BDX)’s strong dividend record may appeal to more risk-tolerant investors. The planned spinoff is projected to be accretive to earnings in its first year, which indicates that the dividend should remain intact through the process.
Becton, Dickinson and Company (NYSE:BDX) holds a 53-year track record of consistent dividend payments, which makes it one of the best dividend stocks to invest in. The company’s quarterly dividend comes in at $1.04 per share and has a dividend yield of 2.22%, as of September 19.
5. Enterprise Products Partners L.P. (NYSE:EPD)
Forward P/E as of September 19: 10.74
Enterprise Products Partners L.P. (NYSE:EPD) is a major player in the midstream energy sector and has consistently generated reliable cash flow, even during challenging times such as the 2007–2009 financial crisis, the 2015–2017 oil price downturn, and the COVID-19 pandemic from 2020 to 2022.
Enterprise Products Partners L.P. (NYSE:EPD)’s stability comes from its business model. As a limited partnership, it manages more than 50,000 miles of pipelines that move crude oil, natural gas, and natural gas liquids (NGLs) across the US. This vital infrastructure tends to hold up well during recessions. Inflation is also less of a risk, since about 90% of the company’s long-term contracts include escalation clauses tied to inflation.
Data centers that support artificial intelligence (AI) applications represent a major growth opportunity for Enterprise Products Partners L.P. (NYSE:EPD). These facilities consume enormous amounts of electricity, and natural gas remains one of the primary fuels used by power plants to meet that demand.
Enterprise Products Partners L.P. (NYSE:EPD) is one of the best dividend stocks to consider, as the company has been growing its payouts for 27 consecutive years. It currently pays a quarterly dividend of $0.545 per share and has a dividend yield of 6.88%, as of September 19.
4. Chubb Limited (NYSE:CB)
Forward P/E as of September 19: 10.41
Chubb Limited (NYSE:CB), headquartered in Zurich, Switzerland, is the largest publicly traded insurer worldwide, offering property, casualty, health, and supplemental insurance. The company was previously known as ACE Limited until 2016, when it purchased the original Chubb and adopted its name for the merged entity.
Large insurers like Chubb Limited (NYSE:CB) are typically shielded from economic downturns, since individuals and businesses rarely cancel insurance coverage even when cutting back on expenses. The company has also been expanding quickly overseas, with international markets accounting for 43% of its revenue in 2024.
This explains why Chubb Limited (NYSE:CB)’s consolidated net premiums have steadily grown over the last six years, despite challenges such as the COVID-19 pandemic, inflation, higher interest rates, geopolitical tensions, trade disputes, and tariffs disrupting the global economy. The bulk of its revenue continues to be driven by its core property and casualty (P&C) insurance policies.
Chubb Limited (NYSE:CB) also has a strong dividend history. The company has raised its payouts for 32 consecutive years and currently offers a quarterly dividend of $0.97 per share. As of September 19, the stock has a dividend yield of 1.42%.
3. Amcor plc (NYSE:AMCR)
Forward P/E as of September 19: 9.93
Amcor plc (NYSE:AMCR), a global packaging leader, is shifting its focus from traditional commodity plastics to higher-margin healthcare and hygiene markets through an all-stock merger with Berry Global. The $13.8 billion deal, which includes more than $7 billion in assumed debt, makes Amcor the world’s largest flexible plastics company, raising its global market share to about 7% and giving it stronger bargaining power with resin and film suppliers.
The healthcare and hygiene segments offer more durable growth, with a compound annual growth rate of 3–4%, while also lifting margins — healthcare nonwovens alone generate around 19% EBITDA. Meanwhile, Amcor plc (NYSE:AMCR)’s core flexible plastics and rigid packaging divisions remain essential to major FMCG companies such as Nestlé, Procter & Gamble, and Johnson & Johnson, who value its scale, dependability, and integrated offerings that are difficult for rivals to match.
On August 17, Amcor plc (NYSE:AMCR) declared a quarterly dividend of $0.1275 per share, which was in line with its previous dividend. Overall, the company has raised its payouts for 41 years in a row. With a dividend yield of 6.17%, as of September 19, AMCR is one of the best dividend stocks to buy.
2. The Kraft Heinz Company (NASDAQ:KHC)
Forward P/E as of September 19: 9.64
The Kraft Heinz Company (NASDAQ:KHC) is a global producer and distributor of food and beverages, offering a wide range of products such as cheese, sauces, cold cuts, and ready-to-eat meals. Its portfolio includes some of the most recognizable names in the food industry, along with private-label and regional offerings.
In recent years, the company has focused on three key areas: expanding in emerging markets, controlling raw material and packaging expenses, and strengthening its brands through its extensive trademark portfolio. Achieving these goals relies on strong marketing, efficient supply chain operations, and continuous product innovation. Investors and management have been particularly attentive to sales volumes in North America and the results of initiatives like the Brand Growth System.
The Kraft Heinz Company (NASDAQ:KHC) is one of the best dividend stocks on our list, and the company offers a quarterly dividend of $0.40 per share. The stock supports a dividend yield of 6.06%, as of September 19.
1. Ford Motor Company (NYSE:F)
Forward P/E as of September 19: 8.64
Ford Motor Company (NYSE:F) is recognized worldwide for manufacturing and selling vehicles across a wide range of sizes, designs, and powertrains. Beyond its products, the company has built a reputation for its attractive dividend yield, which currently sits around 5% and provides shareholders with steady, though not flawless, income. On top of that, Ford occasionally pays out extra dividends, such as earlier this year when it issued a $0.15 per share regular dividend alongside a $0.15 per share supplemental payout.
What sets Ford Motor Company (NYSE:F) apart is that, unlike most high-yield dividend stocks, it also carries meaningful growth potential. This comes largely from Ford Pro, its commercial vehicle unit, which boasts strong margins and serves as a growth engine for the business.
Of course, the auto industry remains prone to volatility, with issues like potential tariffs creating uncertainty. Even so, Ford Motor Company (NYSE:F)’s strong financial footing, including $28.4 billion in cash and $46.6 billion in total liquidity as of the second quarter, provides a buffer against the sector’s ups and downs. The company pays a quarterly dividend of $0.15 per share and has a dividend yield of 5.16%, as of September 19.
While we acknowledge the potential of F to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than F and that has 100x upside potential, check out our report about this cheapest AI stock.
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