8 Dividend Stocks Every Investor Should Consider
The Motley Fool·2025-11-28 10:30

Core Viewpoint - The article highlights eight dividend stocks that cater to various investment styles, emphasizing the importance of balancing current income with long-term growth in a diversified dividend strategy [1][2]. Group 1: Stock Summaries - American Express (AXP): Operates a closed-loop payments network with a yield of 0.87% and a payout ratio of 16%, indicating significant potential for dividend growth due to its affluent customer base and strong pricing power [3][4]. - JPMorgan Chase (JPM): The largest U.S. bank by assets, offering a 2% yield and a 28% payout ratio, making it a solid choice for investors seeking both income and capital appreciation [5]. - Costco (COST): Generates profit primarily from membership fees, with a low yield of 0.5% but a 27% payout ratio and a history of substantial special dividends, showcasing its commitment to shareholder returns [6][7]. - S&P Global (SPGI): Provides essential financial market services with a yield of 0.8% and a 28% payout ratio, boasting a 52-year history of dividend increases, reflecting its strong market position [9]. - AbbVie (ABBV): A biopharmaceutical company with a 3% yield and a remarkable 53 consecutive years of dividend increases, supported by a robust pipeline and strategic acquisitions [10]. - Pfizer (PFE): A major pharmaceutical company with a high yield of 6.7% but a payout ratio near 98%, appealing to income-focused investors despite earnings volatility risks [11]. - Philip Morris International (PM): Offers a 3.8% yield with a payout ratio of nearly 78%, focusing on smoke-free products to differentiate itself and provide growth opportunities [12][13]. - Nvidia (NVDA): A technology company with a minimal yield of 0.02% but a low payout ratio of 1%, indicating strong potential for future dividend growth driven by substantial free cash flow [15].