In this article, we will take a look at some of the best affordable dividend stocks.With the Federal Reserve moving toward rate cuts, dividend-paying stocks could attract renewed interest from investors. Still, not all approaches deliver the same results. The Franklin Templeton Equity Income Fund (FISEX) takes a selective path, targeting high-quality businesses that also generate income. Morningstar has given the fund a four-star rating, and it ranks among the top performers in total returns both this year ...

Core Viewpoint - Dividend-paying stocks can provide regular income and potential stock price appreciation, often overlooked by investors focused on high-growth stocks [1] Dividend Performance Summary - Dividend growers and initiators have an average annual total return of 10.24% from 1973 to 2024, while dividend payers yield 9.20%, and non-payers yield only 4.31% [3] Company Summaries Realty Income - Realty Income (O) has a dividend yield of 5.5% and is a REIT that pays dividends monthly, having paid dividends for over 660 months [4][5] - The company owns 15,600 leased properties across 91 industries, with major clients including 7-Eleven and Home Depot [6] - Realty Income's forward P/E ratio is 37, below its five-year average of 42, indicating attractive valuation [6] Pfizer - Pfizer (PFE) offers a dividend yield of 6.8%, with recent stock price declines attributed to reduced demand for Covid-19 products and patent expirations [7] - The company has a strong drug pipeline, with over 50 programs and a focus on oncology, and reported a 10% year-over-year revenue increase [7] - Pfizer's forward P/E ratio is 8.2, significantly below its five-year average of 10.1, suggesting appealing valuation [7] Verizon Communications - Verizon (VZ) has a dividend yield of 6.1% and extensive infrastructure, including over a million miles of fiber and 146.1 million wireless retail connections [8][9] - The company faces challenges with subscriber growth but generates substantial free cash flow of approximately $20 billion over the last year [9] - Verizon's forward P/E ratio is 9.3, close to its five-year average of 9.0, indicating reasonable valuation [10] United Parcel Service - United Parcel Service (UPS) has a dividend yield of 7.5%, with recent share price declines due to various operational challenges [11][12] - The company is addressing issues such as reduced online shopping demand and higher employee costs, with a focus on strategic initiatives for long-term growth [12][13] - UPS's commitment to improving financial performance suggests potential for recovery and growth [13]

Core Insights - The article discusses the perspective of an income-oriented investor who seeks high-yield income to support retirement lifestyle, emphasizing the importance of dividend-paying stocks and funds [1] Investment Strategy - The investor focuses on dividend-paying income stocks and funds such as BDCs, REITs, CEFs, and ETFs to enhance retirement income beyond pension and Social Security [1] - The investor's approach is informed by personal experiences during the Great Recession, leading to a commitment to smarter long-term investing decisions [1] Market Psychology - The article highlights the fascination with the human psychology of markets, suggesting that understanding market behavior is as crucial as financial analysis [1]

Group 1 - The series of articles allows any dividend-paying stock mentioned in communications to be considered for a reader favorite listing since May 2017 [1] - The Dividend Dogcatcher offers a subscription service that includes follow-up articles and a free two-week trial [1] Group 2 - A live video show called Underdog Daily Dividend Show highlights portfolio candidates every NYSE trading day on Facebook [2] - The audience is encouraged to comment on their favorite, least favorite, or curious stock tickers for potential inclusion in future reports [2]

Group 1: Dividend Overview - Dividend-paying stocks provide a passive income stream and are generally less volatile, making them attractive in the current market landscape [1][8] - High-yield stocks, such as Verizon Communications, Philip Morris, and Walgreens Boots Alliance, are highlighted as potential investment options [2] Group 2: Philip Morris (PM) - Philip Morris shares have seen a 14% growth in EPS and a 7% increase in sales, driven by strong demand and innovations in its smoke-free business [4] - The smoke-free products exceeded 40 billion units for the first time in FY24, with net revenues increasing by 14.2% and gross profit rising by 18.7% [5] - The current dividend yield for PM is 3.5%, and the company is recognized as a member of the elite Dividend Kings group [5] Group 3: Verizon Communications (VZ) - Verizon is a leading telecommunications company in the U.S., providing various services to consumers and businesses [7] - The company's earnings outlook has improved, with analysts raising EPS expectations, and it has strong cash generation, making it appealing to income-focused investors [9] - Verizon's FY24 free cash flow is projected at $19.8 billion, reflecting a 6% year-over-year growth, with a current dividend yield of 6.3% [10] Group 4: Walgreens Boots Alliance (WBA) - Walgreens Boots Alliance is a retail drugstore chain, and analysts have recently become bullish on its EPS outlook, resulting in a Zacks Rank 2 (Buy) [12] - The stock's annual yield has risen to approximately 9.3%, significantly higher than the market average, despite past weak performance [14] - WBA shares have bounced back in 2025, gaining nearly 15% and showing relative strength compared to the S&P 500 [14]

Market Overview - Major U.S. indexes have experienced significant volatility in 2024, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite declining by 6.12%, 4.07%, and 10.40% year-to-date, respectively [1] - Investor concerns are heightened due to potential trade wars, government shutdowns, and recession fears, influenced by President Trump's fiscal, trade, and immigration policies [1] Economic Indicators - The Consumer Price Index (CPI) rose by 0.2% in February, following a 0.5% increase in January, with an annual CPI drop of 2.8% from 3% in January [2] - Trump's tariffs have raised inflation fears and concerns about economic growth, impacting expectations for Federal Reserve interest rate cuts, which are currently between 4.25% and 4.50% [2] - The labor market remains stable, but immigration policies and layoffs threaten its stability [2] Investment Opportunities - In a volatile market, dividend-paying stocks are recommended for portfolio diversification, with notable companies including Toll Brothers, DICK'S Sporting Goods, KornFerry International, Banco Santander, and Applied Materials [3] Company Profiles Toll Brothers - Toll Brothers specializes in building various residential communities and has a Zacks Rank of 3 (Hold) [4] - The company declared a dividend of 25 cents per share, with a dividend yield of 0.9%, and has increased its dividend five times over the past five years, with a payout ratio of 7% [5] DICK'S Sporting Goods - DICK'S Sporting Goods is a major omni-channel retailer for sporting goods, holding a Zacks Rank of 3 [6] - The company announced a dividend of $1.21 per share, yielding 2.3%, and has raised its dividend seven times in the last five years, with a payout ratio of 31% [7] KornFerry International - KornFerry is a leading executive recruitment firm with a Zacks Rank of 2 (Buy) [8] - The company declared a dividend of 48 cents per share, yielding 2.2%, and has increased its dividend six times over the past five years, with a payout ratio of 31% [9] Banco Santander - Banco Santander is the largest bank in Spain, currently holding a Zacks Rank of 3 [11] - The bank declared a dividend of 8 cents per share, yielding 2.4%, and has increased its dividend seven times in the last five years, with a payout ratio of 19% [12] Applied Materials - Applied Materials is a major supplier of semiconductor fabrication equipment, with a Zacks Rank of 3 [13] - The company announced a dividend of 46 cents per share, yielding 1.1%, and has increased its dividend six times over the past five years, with a payout ratio of 18% [14]