Reviewed Reviewed Updated: Apr 1, 2024, 12:31pm When you reinvest dividend income, the magic of compounding can turbocharge your returns. Over the last century, dividend payments have accounted for about 40% of the total annualized return of the S&P 500. In addition, from 1973 to 2022, S&P 500 dividend stocks have delivered twice the return of stocks that have paid no dividends. However, a good dividend cannot make up for an underperforming stock. Similarly, a high dividend yield could be a trap that covers up erratic payouts, poor performance or minimal growth prospects. To help you find reliable dividend investments, Forbes Advisor has identified 10 of the best dividend stocks available in the U.S. stock market today. Find a vetted financial advisor Why you can trust Forbes Advisor Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the investing methodology for the ratings below. SmartAsset Get started Take the SmartAsset quiz to get matched with vetted financial advisors who serve your area Next steps Review matches on your schedule with a free introductory call Take the SmartAsset quiz to get matched with vetted financial advisors who serve your area Review matches on your schedule with a free introductory call Best Dividend Stocks of April 2024 See More See Less CubeSmart (CUBE) Dividend Yield 4.5% 5-Year Avg. Annualized Dividend Growth 9.8% 5-Year Avg. Annualized EPS Growth 15.6% 4.5% 9.8% 15.6% CubeSmart owns and manages self-storage facilities throughout the United States. It has the highest dividend yield on the list, and it also boasts a “B” financial health rating from Morningstar, which indicates solid financial health. CUBE stock has beaten the S&P 500 by 0.8 percentage points per year over the last decade on an annualized basis. Over the next five years, analysts project 13.8% average yearly EPS growth. When earnings are increasing, a company can afford to maintain and continue raising the dividend if it wishes. CubeSmart is a real estate investment trust, or REIT. It trades like a stock but is more like an exchange-traded fund that owns real estate holdings. { "symbols": [ [ "NYSE:CUBE|1M" ] ], "chartOnly": false, "width": 1000, "height": 500, "locale": "en", "colorTheme": "light", "autosize": false, "showVolume": false, "showMA": false, "hideDateRanges": false, "hideMarketStatus": false, "hideSymbolLogo": false, "scalePosition": "right", "scaleMode": "Normal", "fontFamily": "-apple-system, BlinkMacSystemFont, Trebuchet MS, Roboto, Ubuntu, sans-serif", "fontSize": "10", "noTimeScale": false, "valuesTracking": "1", "changeMode": "price-and-percent", "chartType": "area", "maLineColor": "#2962FF", "maLineWidth": 1, "maLength": 9, "lineWidth": 2, "lineType": 0, "dateRanges": [ "1d|1", "1m|30", "3m|60", "12m|1D", "60m|1W", "all|1M" ] } Automatic Data Processing, Inc. (ADP) Dividend Yield 2.3% 5-Year Avg. Annualized Dividend Growth 12.1% 5-Year Avg. Annualized EPS Growth 17.2% 2.3% 12.1% 17.2% Automatic Data Processing provides human resources, payroll, insurance and retirement services to corporations. It has a “B” financial rating from Morningstar, and its EPS has grown at 18.7% per year over the last five years. That’s the highest historical growth rate on the list. Analysts expect 10.9% yearly EPS increases for the next five years. ADP stock has been a strong performer, beating the S&P 500 by three percentage points per year over the last decade on an annualized basis. { "symbols": [ [ "NASDAQ:ADP|1M" ] ], "chartOnly": false, "width": 1000, "height": 500, "locale": "en", "colorTheme": "light", "autosize": false, "showVolume": false, "showMA": false, "hideDateRanges": false, "hideMarketStatus": false, "hideSymbolLogo": false, "scalePosition": "right", "scaleMode": "Normal", "fontFamily": "-apple-system, BlinkMacSystemFont, Trebuchet MS, Roboto, Ubuntu, sans-serif", "fontSize": "10", "noTimeScale": false, "valuesTracking": "1", "changeMode": "price-and-percent", "chartType": "area", "maLineColor": "#2962FF", "maLineWidth": 1, "maLength": 9, "lineWidth": 2, "lineType": 0, "dateRanges": [ "1d|1", "1m|30", "3m|60", "12m|1D", "60m|1W", "all|1M" ] } Broadcom Inc. (AVGO) Dividend Yield 1.6% 5-Year Avg. Annualized Dividend Growth 14.7% 5-Year Avg. Annualized EPS Growth 12.4% 1.6% 14.7% 12.4% Broadcom is a semiconductor maker with a wide array of product and software offerings. The company has continuously expanded its product mix with multiple buyouts of other companies over the years. It has a “B” financial health grade from Morningstar. The company has grown earnings more than 20% per year over the last five years, and analysts expect 13.2% yearly EPS growth going forward. AVGO stock is the best-performing stock on the list over the last decade, beating the S&P 500 by 25.3 percentage points per year. { "symbols": [ [ "NASDAQ:AVGO|1M" ] ], "chartOnly": false, "width": 1000, "height": 500, "locale": "en", "colorTheme": "light", "autosize": false, "showVolume": false, "showMA": false, "hideDateRanges": false, "hideMarketStatus": false, "hideSymbolLogo": false, "scalePosition": "right", "scaleMode": "Normal", "fontFamily": "-apple-system, BlinkMacSystemFont, Trebuchet MS, Roboto, Ubuntu, sans-serif", "fontSize": "10", "noTimeScale": false, "valuesTracking": "1", "changeMode": "price-and-percent", "chartType": "area", "maLineColor": "#2962FF", "maLineWidth": 1, "maLength": 9, "lineWidth": 2, "lineType": 0, "dateRanges": [ "1d|1", "1m|30", "3m|60", "12m|1D", "60m|1W", "all|1M" ] } Broadridge Financial Solutions, Inc. (BR) Dividend Yield 1.6% 5-Year Avg. Annualized Dividend Growth 10.5% 5-Year Avg. Annualized EPS Growth 6.3% 1.6% 10.5% 6.3% Broadridge Financial Solution was formerly part of ADP, mentioned earlier in the list, but it was spun off in 2007. BR focuses on investor communication and technology solutions for financial companies. It has an “A” financial health rating, a steadily increasing dividend, and EPS growth that is expected to be slightly higher over the next five years at 11.8% compared to the last five years, which came in at 9.2%. This should allow for the dividend to continue increasing over time. In addition to the steadily increasing dividend, the stock itself has performed well, outpacing the S&P 500 by 7.6 percentage points per year over the last decade. { "symbols": [ [ "NYSE:BR|1M" ] ], "chartOnly": false, "width": 1000, "height": 500, "locale": "en", "colorTheme": "light", "autosize": false, "showVolume": false, "showMA": false, "hideDateRanges": false, "hideMarketStatus": false, "hideSymbolLogo": false, "scalePosition": "right", "scaleMode": "Normal", "fontFamily": "-apple-system, BlinkMacSystemFont, Trebuchet MS, Roboto, Ubuntu, sans-serif", "fontSize": "10", "noTimeScale": false, "valuesTracking": "1", "changeMode": "price-and-percent", "chartType": "area", "maLineColor": "#2962FF", "maLineWidth": 1, "maLength": 9, "lineWidth": 2, "lineType": 0, "dateRanges": [ "1d|1", "1m|30", "3m|60", "12m|1D", "60m|1W", "all|1M" ] } Caterpillar, Inc. (CAT) Dividend Yield 1.4% 5-Year Avg. Annualized Dividend Growth 8.6% 5-Year Avg. Annualized EPS Growth 13.3% 1.4% 8.6% 13.3% Caterpillar is an iconic brand known for its heavy equipment machinery. It has solid all-round performance, including a “B” financial health rating, more than 14% historic EPS growth, and analysts project 12.7% average yearly EPS growth over the next five years. CAT stock has been a steady long-term performer for those looking to beat the S&P 500. Over the last decade it has beaten the S&P 500 by 4.3 percentage points per year. { "symbols": [ [ "NYSE:CAT|1M" ] ], "chartOnly": false, "width": 1000, "height": 500, "locale": "en", "colorTheme": "light", "autosize": false, "showVolume": false, "showMA": false, "hideDateRanges": false, "hideMarketStatus": false, "hideSymbolLogo": false, "scalePosition": "right", "scaleMode": "Normal", "fontFamily": "-apple-system, BlinkMacSystemFont, Trebuchet MS, Roboto, Ubuntu, sans-serif", "fontSize": "10", "noTimeScale": false, "valuesTracking": "1", "changeMode": "price-and-percent", "chartType": "area", "maLineColor": "#2962FF", "maLineWidth": 1, "maLength": 9, "lineWidth": 2, "lineType": 0, "dateRanges": [ "1d|1", "1m|30", "3m|60", "12m|1D", "60m|1W", "all|1M" ] } UnitedHealth Group Incorporated (UNH) Dividend Yield 1.5% 5-Year Avg. Annualized Dividend Growth 15.9% 5-Year Avg. Annualized EPS Growth 13.1% 1.5% 15.9% 13.1% UnitedHealth Group provides health insurance primarily within the
United States but also globally. UNH plans cover 152 million people. UNH is an all-around solid stock. It has an “A” financial rating from Morningstar, and analysts expect 12.3% yearly EPS increases for the next five years. It is the second-strongest performing stock on the list over the last decade, outperforming the S&P 500 by 9.4 percentage points per year on an annualized basis. { "symbols": [ [ "NYSE:UNH|1M" ] ], "chartOnly": false, "width": 1000, "height": 500, "locale": "en", "colorTheme": "light", "autosize": false, "showVolume": false, "showMA": false, "hideDateRanges": false, "hideMarketStatus": false, "hideSymbolLogo": false, "scalePosition": "right", "scaleMode": "Normal", "fontFamily": "-apple-system, BlinkMacSystemFont, Trebuchet MS, Roboto, Ubuntu, sans-serif", "fontSize": "10", "noTimeScale": false, "valuesTracking": "1", "changeMode": "price-and-percent", "chartType": "area", "maLineColor": "#2962FF", "maLineWidth": 1, "maLength": 9, "lineWidth": 2, "lineType": 0, "dateRanges": [ "1d|1", "1m|30", "3m|60", "12m|1D", "60m|1W", "all|1M" ] } Exponent, Inc. (EXPO) Dividend Yield 1.4% 5-Year Avg. Annualized Dividend Growth 11.8% 5-Year Avg. Annualized EPS Growth 7.2% 1.4% 11.8% 7.2% Exponent provides consulting on engineering and scientific projects, including biomedical, construction and food safety among other areas. The company has an “A” financial health rating from MorningStar, and while its dividend yield is relatively low on this list, it has been growing the dividend amount at nearly 15% per year over the last five years. This is attractive for investors looking for cash flow to increase from year to year. Analysts project average EPS growth of 15% per year over the next five years. However, they are projecting a slight decline in EPS for 2024. The stock has outpaced the S&P 500 by 3.9 percentage points over the last decade on an annualized basis. This is even with EXPO stock struggling in 2022 and 2023. { "symbols": [ [ "NASDAQ:EXPO|1M" ] ], "chartOnly": false, "width": 1000, "height": 500, "locale": "en", "colorTheme": "light", "autosize": false, "showVolume": false, "showMA": false, "hideDateRanges": false, "hideMarketStatus": false, "hideSymbolLogo": false, "scalePosition": "right", "scaleMode": "Normal", "fontFamily": "-apple-system, BlinkMacSystemFont, Trebuchet MS, Roboto, Ubuntu, sans-serif", "fontSize": "10", "noTimeScale": false, "valuesTracking": "1", "changeMode": "price-and-percent", "chartType": "area", "maLineColor": "#2962FF", "maLineWidth": 1, "maLength": 9, "lineWidth": 2, "lineType": 0, "dateRanges": [ "1d|1", "1m|30", "3m|60", "12m|1D", "60m|1W", "all|1M" ] } Selective Insurance Group, Inc. (SIGI) Dividend Yield 1.2% 5-Year Avg. Annualized Dividend Growth 11.8% 5-Year Avg. Annualized EPS Growth 9.5% 1.2% 11.8% 9.5% Selective Insurance Group is an insurance company focusing on the
New York metropolitan area. SIGI stock has a “B” financial health rating, a steadily increasing dividend and solid long-term stock performance. Analysts project 18.1% yearly EPS growth over the next five years, outpacing the historical growth rate. That allows for the dividend to potentially keep increasing, possibly at an even higher rate. In terms of stock performance, it has beaten the S&P 500 by 5.3 percentage points per year over the last decade, making it an excellent choice for investors looking for increasing yearly cash flow and strong stock performance. { "symbols": [ [ "NASDAQ:SIGI|1M" ] ], "chartOnly": false, "width": 1000, "height": 500, "locale": "en", "colorTheme": "light", "autosize": false, "showVolume": false, "showMA": false, "hideDateRanges": false, "hideMarketStatus": false, "hideSymbolLogo": false, "scalePosition": "right", "scaleMode": "Normal", "fontFamily": "-apple-system, BlinkMacSystemFont, Trebuchet MS, Roboto, Ubuntu, sans-serif", "fontSize": "10", "noTimeScale": false, "valuesTracking": "1", "changeMode": "price-and-percent", "chartType": "area", "maLineColor": "#2962FF", "maLineWidth": 1, "maLength": 9, "lineWidth": 2, "lineType": 0, "dateRanges": [ "1d|1", "1m|30", "3m|60", "12m|1D", "60m|1W", "all|1M" ] } Elevance Health, Inc. (ELV) Dividend Yield 1.3% 5-Year Avg. Annualized Dividend Growth 15.3% 5-Year Avg. Annualized EPS Growth 10.8% 1.3% 15.3% 10.8% Elevance Health is a health insurer providing individual plans as well as government- and employer-sponsored plans for approximately 100 million people. It has a strong dividend growth rate and a “B” financial health rating from Morningstar. The stock has outperformed the S&P 500 by 7.2 percentage points per year over the last decade, annualized. Analysts project steady EPS growth of 11.8% per year over the next half decade, which allows for the dividend to continue increasing if the company so chooses. { "symbols": [ [ "NYSE:ELV|1M" ] ], "chartOnly": false, "width": 1000, "height": 500, "locale": "en", "colorTheme": "light", "autosize": false, "showVolume": false, "showMA": false, "hideDateRanges": false, "hideMarketStatus": false, "hideSymbolLogo": false, "scalePosition": "right", "scaleMode": "Normal", "fontFamily": "-apple-system, BlinkMacSystemFont, Trebuchet MS, Roboto, Ubuntu, sans-serif", "fontSize": "10", "noTimeScale": false, "valuesTracking": "1", "changeMode": "price-and-percent", "chartType": "area", "maLineColor": "#2962FF", "maLineWidth": 1, "maLength": 9, "lineWidth": 2, "lineType": 0, "dateRanges": [ "1d|1", "1m|30", "3m|60", "12m|1D", "60m|1W", "all|1M" ] } Republic Services, Inc. (RSG) Dividend Yield 1.1% 5-Year Avg. Annualized Dividend Growth 7.4% 5-Year Avg. Annualized EPS Growth 11.6% 1.1% 7.4% 11.6% Republic Services operates waste management and recycling operations in the United States. RSG has an “A” financial health rating. Its stock has performed admirably over the last decade, outpacing the S&P 500 by 8.4 percentage points per year over the last decade. It does have the smallest dividend yield and dividend growth rate on the list. Analysts expect 8.9% yearly EPS growth over the next five years. { "symbols": [ [ "NYSE:RSG|1M" ] ], "chartOnly": false, "width": 1000, "height": 500, "locale": "en", "colorTheme": "light", "autosize": false, "showVolume": false, "showMA": false, "hideDateRanges": false, "hideMarketStatus": false, "hideSymbolLogo": false, "scalePosition": "right", "scaleMode": "Normal", "fontFamily": "-apple-system, BlinkMacSystemFont, Trebuchet MS, Roboto, Ubuntu, sans-serif", "fontSize": "10", "noTimeScale": false, "valuesTracking": "1", "changeMode": "price-and-percent", "chartType": "area", "maLineColor": "#2962FF", "maLineWidth": 1, "maLength": 9, "lineWidth": 2, "lineType": 0, "dateRanges": [ "1d|1", "1m|30", "3m|60", "12m|1D", "60m|1W", "all|1M" ] } *All analysis and data are sourced from Trades That Swing , current as of April 1, 2024. *At the time of publication, the author owned Automatic Data Processing (ADP) stock as part of a long-term investment portfolio. Methodology Our curated list of best dividend stocks is based on 10 key measures. To be included in the list, each stock must have demonstrated: As of this writing, only 15 U.S. stocks met all the criteria. The top 10 in terms of dividend yield were selected for this list. Stocks with large earnings drops in the current year, or large expected EPS drops in their next fiscal year, were excluded. Dividends are nice, but they aren’t the only factor to consider when buying a stock. Ideally, a dividend stock is financially strong and growing—continued stability and growth signals that the company’s dividend is sustainable over the long term and likely to be increased regularly. An experienced financial analyst selected the stocks above, but they may not be right for your portfolio. Before you purchase any of these stocks, do plenty of research to ensure they align with your financial goals and risk tolerance. What Are Dividend Stocks? Dividend stocks make regular distributions of cash and stock to their shareholders. Income investors who want cash flow buy dividend stocks, although the best dividend stocks deliver good long-term appreciation in addition to income. Here are the key concepts you need to understand when evaluating the best dividend stocks: eToro Deposit $100 and get a $10 bonus! (US Only) Trade in a variety of assets including stocks, ETFs and cryptocurrencies eToro offers trading tools to help both novices and experts Next Up In Investing Cory has been a professional trader for two decades. In addition to trading and investing he's widely published and coaches individual clients on the finer points of gaining an edge in the market.