20 of the Best Dividend Stocks to Buy (Plus Advice from Advisors)

Investing in dividend stocks is a highly recommended way to build wealth in the long run. Not only can the price of the stock increase, but you also can receive small, regular payments, called dividends while owning these stocks. 

What Are Dividend Stocks?

A dividend is payment companies make to their shareholders, who own stock in their corporation. The dividend stock label refers to those that historically have paid out reasonable dividends and maintained (or even increased) their payments yearly. The best dividend stocks are companies with an excellent track record with dividend payments, will likely not be changing course any time soon, and can serve as a source of passive income. 

What to Look for in Dividend Stock

The first important thing to understand is that dividend stocks have a yield representing what percent of your investment you can receive as a regular payment. So, for example, if you buy a $100 dividend stock with a 5% yield and the stock price stays the same, you'll receive $5 total in dividends for every year you own the stock. It may be an annual payment or split up into separate ones throughout the year. 

Dividend Stocks Are Long-Term Investment

An important thing to remember about investing is that no matter what vehicle you choose, investing almost always works better with extended holding periods. Even the best dividend stocks can experience volatility when looking at 12 months. 

Picking from the Best Dividend Stocks: Common Mistake

- Tunnel Vision Regarding Yield - Failing to Consider Tax Implications of Dividends  - Letting Emotions Win 

Some of the Best Dividend Stocks to Consider Adding to Your Portfolio

- Realty Income (O) - MPLX LP (MPLX) - Magellan Midstream Partners LP (MMP) - Hanesbrands Inc. (HBI) - Walmart - Federal Realty Investment Trust

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