Top 3 Dividend Stocks to Consider Buying at the End of 2023
As the S&P 500 continues to rise, the value of reliable dividend stocks can easily be overlooked. But the appeal of quality dividend stocks lies in their ability to deliver regular quarterly payments regardless of the market’s performance. Companies like Coca Cola, Clorox, and Target have a track record of raising dividends every year, even during recessions, making them ideal investments for those seeking a growing income stream.
Coca-Cola (KO -0.74%), Clorox (CLX -0.19%), and Target (TGT -1.96%) have all consistently raised their dividends over the years, making them worth considering before the end of the year.
Despite being criticized as a low-growth stock, Coca-Cola’s history of dividend raises, wide moat, and ability to combat inflation through price increases make it an appealing investment for those seeking capital preservation over capital appreciation. With a 3.1% dividend yield and a reasonable P/E ratio, now may be a good time to invest in Coca-Cola.
Clorox, on the other hand, has a portfolio of strong brands and has recently made meaningful cost cuts and price increases, setting the stage for strong bottom-line results. Despite a recent cyberattack scare, the stock has recovered and now offers a 3.4% dividend yield, making it a good value for investors.
Target, while facing challenges such as inflationary pressures and weak consumer spending, still offers a 3.2% dividend yield. With over 50 consecutive years of dividend increases and more growth potential than Coca-Cola or Clorox, the stock presents a compelling investment opportunity.
These high-quality dividend stocks offer yields close to the risk-free 10-year Treasury Rate, making them ideal for investors looking to generate a steady stream of passive income in 2024. With the potential for capital gains over time, Coca-Cola, Clorox, and Target are worth considering for investors seeking a blend of dividend income and long-term growth.