Top Three Dividend Stocks To Consider For Your Portfolio

Investing in dividend stocks can provide a steady stream of income and potential capital appreciation. With thousands of publicly traded companies to choose from, selecting the right dividend stocks can be a daunting task. This article highlights the top three dividend stocks to consider for your portfolio, based on their historical consistency, growth potential, and financial health.

1. Microsoft Corporation (MSFT)
- Dividend Yield: 1.74%
- Dividend Growth: 10-year CAGR of 11.2%
- Payout Ratio: 35.97%
- Market Cap: $3.24 trillion
- EPS: $12.1
- Forward EPS: $14.95

Microsoft, a tech giant, has consistently increased its dividend for the past 17 years. With a strong balance sheet and robust earnings growth, MSFT is well-positioned to continue raising its dividend. Its diverse product offerings, including cloud services, productivity tools, and gaming, provide a solid foundation for future growth.



2. Johnson & Johnson (JNJ)
- Dividend Yield: 2.45%
- Dividend Growth: 59-year streak of dividend increases, with a 10-year CAGR of 6.5%
- Payout Ratio: 64.4%
- Market Cap: $349.8 billion
- EPS: $6.04
- Forward EPS: $10.6

Johnson & Johnson, a healthcare conglomerate, has raised its dividend for an impressive 59 consecutive years. With a diversified portfolio of pharmaceuticals, medical devices, and consumer health products, JNJ offers a stable and growing income stream. Its strong financial health and consistent earnings growth support its ability to continue increasing dividends.



3. Procter & Gamble (PG)
- Dividend Yield: 2.64%
- Dividend Growth: 65-year streak of dividend increases, with a 10-year CAGR of 6.1%
- Payout Ratio: 58.2%
- Market Cap: $394.5 billion
- EPS: $4.67
- Forward EPS: $5.45

Procter & Gamble, a consumer goods giant, has increased its dividend for 65 consecutive years. With a strong brand portfolio and global presence, PG offers a stable and growing income stream. Its consistent earnings growth and robust cash flow support its ability to continue raising dividends.



In conclusion, Microsoft Corporation, Johnson & Johnson, and Procter & Gamble are top dividend stocks to consider for your portfolio. Their historical consistency, growth potential, and financial health make them attractive options for income-oriented investors. However, it is essential to conduct thorough research and consider your investment goals and risk tolerance before making any investment decisions.