The Motley Fool·2026-02-10 02:21Core Viewpoint - The article emphasizes the value of dividend-paying stocks during periods of uncertainty, particularly in the context of the recent sell-off in software companies due to AI-related concerns [1][2]. Dividend Stocks Overview - Dividend payments provide a safety net for investors, allowing them to have direct cash returns rather than relying solely on management's capital allocation decisions [2]. - The article suggests that during uncertain times, investors may place greater importance on dividend payments [2]. Company Analysis: Meta Platforms - Meta Platforms is highlighted as a surprising but viable dividend stock, with a current dividend yield of 0.3% [5]. - Despite a low yield, Meta's payout ratio is only 9%, indicating significant potential for future dividend increases [7]. - Meta's financial health is strong, with cash and marketable securities totaling $81.6 billion against long-term debt of $58.7 billion [7]. - The company has shown robust growth, with Q4 2025 revenue and earnings per share increasing by 24% and 11% year-over-year, respectively, and a projected 30% revenue growth for Q1 [7]. Company Analysis: Tractor Supply - Tractor Supply offers a more substantial dividend yield of approximately 1.7% and has a payout ratio of about 45%, which is considered conservative for its yield [8][9]. - The company is expected to see modest sales growth of 4.3% year-over-year for fiscal 2025, with guidance for 4% to 6% growth in fiscal 2026 [8][10]. - Long-term projections suggest Tractor Supply aims for annualized net sales growth of 6% to 8% and earnings-per-share growth of 8% to 11% [10]. Valuation and Investment Considerations - Both Meta and Tractor Supply are trading at price-to-earnings ratios of 29 and 26, respectively, which are viewed as attractive relative to their long-term potential [12]. - The article suggests that both companies represent well-rounded options for investors seeking to enhance their portfolios with dividend payments [12].