Have $2,000 to Invest? Here Are 4 of My Favorite Dividend Stocks for the Next 5 Years

Core Insights - Dividend stocks are attractive for long-term investors seeking reliable cash flow, especially for retirees needing passive income [1][2] - Reinvested dividends can significantly enhance total returns and provide stability during market downturns [2] - The article highlights four top dividend stocks for investment over the next five years [3] Company Summaries Pfizer - Pfizer has maintained 348 consecutive quarterly dividend payments and increased payouts for 16 years, offering a forward yield of around 7% [4][5] - The company is targeting over $7 billion in savings by 2027 to improve operating margins and free cash flow, ensuring it can cover dividend payments while reinvesting [5] - Pfizer reported $9.4 billion in net income on $45 billion in revenue for the first nine months of 2025, with net income up 24% year-over-year [9] Johnson & Johnson - Johnson & Johnson has increased its dividends for 63 consecutive years, yielding around 2.6%, which is more than double the S&P 500 average [10] - The company has a strong balance sheet with an AAA credit rating and over $20 billion in annual free cash flow, supporting continued dividend payouts [10] - In Q3 2025, sales grew by approximately 7% to $24 billion, with adjusted EPS increasing by 16% year-over-year [13] Home Depot - Home Depot has increased its dividend annually for 16 years, currently yielding 2.7% [15] - The company’s recent $5.5 billion acquisition of GMS is expected to enhance its specialty building products business [16] - In Q3, Home Depot's sales rose 2.8% year-over-year to $41.4 billion, with net earnings totaling $3.6 billion [18] Realty Income - Realty Income has a flawless record of paying monthly dividends, with a current yield of approximately 5.7% [20] - The company’s properties are primarily single-tenant, freestanding commercial properties, with over 90% of rental income from resilient businesses [21] - Realty Income's Q3 revenue was $1.47 billion, up about 11% year-over-year, with a strong occupancy rate of 98.7% [23][24]