2 High-Quality Dividend Stocks to Buy Right Now

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George Budwell, The Motley Fool

Mon, Mar 24, 2025, 3:30 AM 4 min read

U.S. stocks are experiencing a alternatively volatile period. Despite aggregate optimistic forecasts for the S&P 500 heading into 2025, the benchmark scale is down 3.6% twelvemonth to day arsenic of this writing. High-performing tech stocks, particularly those astatine the forefront of the artificial quality (AI) revolution, person been struggling considerably implicit the archetypal 4th of the year.

What's an capitalist to bash successful uncertain times? In bully times and bad, dividend stocks tin service arsenic a stabilizing constituent for your portfolio. Regardless of broader marketplace performance, high-quality dividend payers tin proceed delivering regular distributions to shareholders, helping to alleviate the interest that comes with uncertainty.

Roll of U.S. currency adjacent to a sticky pad with the connection dividends written connected it.

Here are 2 high-quality dividend stocks that investors tin trust connected successful volatile markets.

PepsiCo (NASDAQ: PEP) is simply a dividend investor's dream, with its almighty operation of output and growth. The institution pays a generous 3.7% dividend output portion trading astatine conscionable 17.5 times guardant earnings, a notable discount to the S&P 500's 19.7 multiple.

What genuinely sets PepsiCo isolated is its singular consistency. The institution has raised its dividend for 53 consecutive years, with its five-year dividend maturation complaint hitting a stellar 7.2% (6% is mostly considered an "elite" maturation rate). PepsiCo's blistering dividend maturation complaint means investors aren't conscionable collecting a static income watercourse but alternatively 1 that consistently outpaces inflation.

PepsiCo's balanced portfolio spanning some beverages and snacks provides a buffer against shifting user preferences. While competitors mightiness excel successful either beverages oregon nutrient products, PepsiCo's wide diversification creates aggregate maturation avenues and helps insulate the concern from category-specific challenges.

This diversification has helped PepsiCo support its awesome dividend maturation streak done aggregate recessions. So contempt its elevated 76.7% payout ratio, the company's unchangeable currency flows from must-have user products supply plentifulness of cushion for some dividends and indispensable investments.

PepsiCo's robust planetary organisation web ensures that its products support ascendant support positions worldwide, creating a almighty competitory moat. Recent strategical acquisitions person besides strengthened its presumption successful high-growth segments, ensuring PepsiCo remains applicable arsenic user preferences evolve.

The bottommost line? For income-focused investors seeking some existent output and aboriginal growth, PepsiCo offers a compelling operation fewer blue-chip stocks tin match.