In this article, we will take a look at 5 Dividend Stocks to Buy for Steady Income. For deeper discussion and analysis, have a look at 15 Dividend Stocks to Buy for Steady Income.
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5. Automatic Data Processing, Inc. (NASDAQ:ADP)
Dividend Yield as of March 19: 3.25%
On March 19, Guggenheim initiated coverage of Automatic Data Processing, Inc. (NASDAQ:ADP) with a Buy rating. The firm also set a $270 price target on the stock. The analyst noted that ADP has lagged the S&P 500 so far this year. That has largely been tied to concerns that AI could replace workers and weigh on seat-based software vendors. Even so, the company has held up better than many of its peers. The firm acknowledged the risk, noting “it is far too early to significantly discount terminal values, especially for a diversified company like ADP.”
During its earnings call for Q4 2025, CFO Peter Hadley said the company has raised its fiscal 2026 consolidated revenue outlook and now expects growth of around 6%. He added that the forecast for adjusted EBIT margin expansion remains unchanged, with an expected increase of 50 to 70 basis points. He also said the company has increased its adjusted EPS growth outlook for fiscal 2026 to 9% to 10%, supported by continued share repurchases.
On segment performance, Hadley noted that the Employer Services revenue growth outlook has been lifted to about 6% for the full year. The PEO segment is still expected to grow between 5% and 7%, with revenue excluding zero-margin pass-throughs projected to increase between 3% and 5%. He added that the company continues to expect an effective tax rate of around 23% for the year. Guidance for new business bookings growth in fiscal 2026 remains in the range of 4% to 7%.
Automatic Data Processing, Inc. (NASDAQ:ADP) provides cloud-based human capital management solutions through its Employer Services and Professional Employer Organization segments.
4. AbbVie Inc. (NYSE:ABBV)
Dividend Yield as of March 19: 3.37%
On March 17, Alloy Therapeutics announced an agreement with AbbVie Inc. (NYSE:ABBV) to develop a new antibody platform. The goal is to discover potent and specific antibodies for targets that current technologies struggle to address. Under the multi-year deal, Alloy will receive an upfront payment, along with an additional payment tied to delivering the platform to AbbVie.
The agreement gives AbbVie access to this antibody discovery platform as part of its broader research efforts. It fits into the company’s ongoing push to expand its pipeline with more targeted therapies. Alloy’s ATX-Gx platform has become widely adopted for fully humanized transgenic mice. It is now used by more than 200 partners across therapeutic discovery programs.
The company continues to reinvest its revenue into research and development. It has expanded its platform over time, adding new strains and tools to keep up with changing demands in antibody discovery. That steady build-out has helped it stay relevant as drug development becomes more complex.
AbbVie Inc. (NYSE:ABBV) focuses on discovering, developing, manufacturing, and selling medicines across areas such as immunology, oncology, aesthetics, neuroscience, and eye care.
3. PepsiCo, Inc. (NASDAQ:PEP)
Dividend Yield as of March 19: 3.70%
On March 19, PepsiCo, Inc. (NASDAQ:PEP) announced that it has met two of its key 2025 water targets under its pep+ initiative, doing so ahead of World Water Day. The company now replenishes 100% of the water used at facilities in high water-risk areas. In simple terms, it is putting back the same amount of water it takes out, and at times even more. This is achieved through conservation projects, infrastructure work, and improved irrigation practices.
In 2025 alone, more than 60 projects helped return nearly 29 billion liters of water to local watersheds. The number is meaningful, but what stands out is how these efforts are spread across different regions rather than concentrated in one place. PepsiCo also confirmed it has fully implemented the Alliance for Water Stewardship (AWS) Standard across all of its high-risk manufacturing sites. This gives the company a clearer, more consistent framework for managing water use and improving sustainability.
These efforts are largely driven by local projects. Work is underway in regions such as the US, Dominican Republic, Egypt, Spain, and Türkiye, with a focus on restoring ecosystems, improving agricultural efficiency, and conserving water. The company is now turning to its 2030 goals. These include expanding water replenishment to cover both company-owned and franchise facilities, improving water-use efficiency, and helping 100 million people gain access to safe water.
PepsiCo, Inc. (NASDAQ:PEP) operates globally, with its products consumed more than one billion times each day across more than 200 countries and territories. In 2025, it generated nearly $94 billion in net revenue, supported by brands including Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream.
2. The J. M. Smucker Company (NYSE:SJM)
Dividend Yield as of March 19: 4.40%
On March 19, TD Cowen lowered its price recommendation on The J. M. Smucker Company (NYSE:SJM) to $113 from $124. It reiterated a Hold rating on the shares. The firm also reduced its FY26 and FY27 EPS estimates in line with consensus and adjusted the price target to reflect lower valuations across the food sector.
During the Q3 2026 earnings call, the company took a more cautious tone on its EPS outlook. CFO Tucker Marshall said they were confident in reaching the $9 midpoint. He noted that any upside would likely come from the coffee business. He added that the strength in coffee is currently helping offset weakness in the Sweet Baked Snacks segment. The company also indicated that its guidance for Sweet Baked Snacks reflects a long-term growth rate of about 2%. The focus there is on stabilizing performance and improving operations over time.
Marshall said the segment is expected to remain soft in the fourth quarter. He pointed to ongoing pressure in the category, along with temporary disruption from a manufacturing plant fire.
The J. M. Smucker Company (NYSE:SJM) produces and markets branded food and beverage products sold primarily through retail channels in North America.
1. Energy Transfer LP (NYSE:ET)
Dividend Yield as of March 19: 7.04%
On March 19, Raymond James added Energy Transfer LP (NYSE:ET) to its Analyst Current Favorites list. The list highlights top stock ideas from the firm’s equity analysts, with each analyst limited to one “buy” idea at a time. In this case, the analyst said the relative outlook for Energy Transfer looks very attractive.
In a CNBC report published on March 17, Adam Baker pointed to Energy Transfer as a name drawing more investor attention. A big part of that interest ties back to its role in supporting data center infrastructure. He noted that the company signed agreements last year with Oracle Corporation and CloudBurst Data Centers, which helped place it within that theme.
Baker also pointed to a potential new catalyst. He said Qatar’s shutdown of its liquefied natural gas production has started conversations around further growth in the US. LNG market. In his view, the US is in a strong position to benefit, given its existing infrastructure and large natural gas supply. He added that concerns about an oversupply of natural gas may now be pushed further out. The glut narrative, as he sees it, is likely delayed until at least 2027.
Energy Transfer LP (NYSE:ET) operates a large and diversified portfolio of energy assets across the U.S. The company owns more than 140,000 miles of pipeline and related infrastructure, with a network that spans 44 states and connects major production basins.
While we acknowledge the potential of ET as an investment, 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 ET and that has 100x upside potential, check out our report about the cheapest AI stock.
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