At one point or another, we have all thought about financial freedom. We dream of be able to retire on time or in some lucky cases, even early. Investing, specifically for this article, dividend investing is a good way to achieve this goal. You do not need to run a business, pay employees, deal with sales tax or everything in between. With investing you simply put some cash towards some stocks each month, do a little a research and by the time you retire, you have a nice income stream alongside your retirement account. I am going to show you the 10 best stocks for beginners in 2023.
Number One: PepsiCo, Inc. (PEP)
Pepsi is a name brand that everyone should be aware of. They have sales in almost every country in the world. Their only rival being Coca-Cola, which happens to be our number two stock below. Right now, Pepsi is trading at $177.18 a share with a dividend yield of 2.84% and a dividend payout of $1.2650 per quarter.
Pepsi has had a steady dividend payout since 2013. They started at $0.5675 in 2013 and have progressed to $1.2650 in 2023. This is an amazing growth and their payouts will only increase as time goes on. In addition, analysts have a buy rating for Pepsi which further proves my point.
Pepsi’s portfolio includes many name brands that bring the company a ton of money each year. Some of the brands are Lay’s, Quaker, Gatorade, 7UP, Doritos, Cheetos and Ruffles, as well as regional and local brands like Gamesa, Mafer, Tortrix and Kero Coco. Their portfolio ensures that the company will remain strong now and into the future.
Number Two: Coca-Cola Co (KO)
Like Pepsi, Coca-Cola has a name that everyone in the world would know. It has more reach and sales than any other beverage company out there. Coca-Cola gained an advantaged during World War 2 when they helped supply the allies and it was that help that they dominated the European sales market.
Coke is trading at $60.11 a share which makes it more affordable than Pepsi if you had to choose between the two. They have a dividend yield of 3.05% and a payout of $0.46 per quarter. Coke has had a steady dividend payout since 2011. That is a long time and that goes to show you how strong the company is.
Coke has over 500 brands, 20 of those generate $1 billion of sales each year. To name just a few, Coca-Cola owns Fanta, Powerade, Sprite, Minute Maid, Dasani, Dr Pepper, Vitamin Water, Schweppes. These are top brands in their respective fields and shows you what a powerhouse Coke is.
Number Three: Realty Income (O)
Realty Income, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. They specialize in real estate and cash flow from over 12,400 real estate properties primarily owned under long-term net lease agreements with commercial clients. To date, the company has declared 634 consecutive monthly dividends on its shares of common stock throughout its 54-year operating history and increased the dividend 120 times since Realty Income’s public listing in 1994.
Currently, they are trading at $56.36 a share. They have a dividend yield of 5.37% and a payout of $0.2555 monthly. I love this stock and because it pays monthly makes me love it even more. Real estate right now is booming which means this company is doing better and better as the year goes on. They have had a steady dividend payout since 1994! That is an insane amount of years but this shows you what an amazing stock it is.
Number Four: Altria Group Inc (MO)
Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. Even if you do not smoke or partake in anything smoking related, this is still a good stock to own. They have a buy rating from analysts right now and is doing very well.
Their shares are trading at $43.40, has a dividend yield of 8.72% (which is high!) and a payout of $0.94 per quarter. I own a few shares myself and so far, I am happy with them. They have paid out a steady dividend since 1989! That is more impressive than our #3 stock.
I know some might have mixed feelings about investing in tobacco related stocks due to health issue or morals and that is ok. I myself believe this is a good stock.
Number Five: AT&T Inc (T)
Our number #5 spot goes to a name you should know and probably use right now, AT&T. This company specializes in the communication sector and offers TV, Cable, Cell service and more. They have a business solutions side that handles accounts from small business to major corporations. I myself use their cell service and I am pleased with it for the most part. Annoying dead zones from time to time but everyone has that.
Right now, AT&T is trading at $14.15 per share with a dividend yield of 7.84% (which is good) and a dividend payout of $0.2775 per quarter. They have had a steady dividend payout since 1984. That is an amazing amount of years and shows how strong the company is. Analysts have a strong buy rating for the company.
Thanks for reading and check out Part 2 tomorrow!
Related: 10 Best Stocks To Invest In 2023 For Beginners – Part 2 (Link will work on 8/26/23)