Top 25 Best Dividend Stocks to Buy and Hold
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The best dividend stocks combine attractive yields with the fundamental strength to sustain and grow those payouts for decades. A high yield alone is not enough — many of the highest-yielding stocks are yield traps where the price has collapsed because the market expects a dividend cut. What separates great dividend stocks from dangerous ones is the quality of the underlying business: strong free cash flow to cover the payout, manageable debt, consistent earnings, and a competitive moat that protects the revenue stream. The stocks ranked below pass all of these tests.
This ranking uses a composite approach: stocks are scored by combining dividend yield with UQS Quality and Risk pillar scores. The logic is simple — a sustainable dividend requires a profitable business (Quality) with a safe balance sheet (Risk), paying an attractive yield. Companies with high yields but low Quality or Risk scores are filtered out because they represent payout risk, not income opportunity. We exclude ETFs and stocks without dividend data. The result is a list of companies where the yield is backed by real fundamental strength — the kind of stocks that dividend growth investors build retirement portfolios around.
What Makes a Great Dividend Stock?
A great dividend stock isn't just one with a high yield — it's one that can sustain and grow that yield for years. Three factors determine dividend sustainability: free cash flow coverage (can the company afford the payout?), earnings quality (are profits real and recurring?), and balance sheet strength (is debt manageable?). The stocks ranked here score well on all three.
This ranking combines dividend yield (40% weight) with UQS Quality (30%) and Risk (30%) scores. The result filters out yield traps — stocks where the high yield signals an impending dividend cut rather than a genuine income opportunity. Companies like utilities, consumer staples, and healthcare firms with decades of dividend growth history tend to rank highly.
How the Div Score Score Is Calculated
Stocks are ranked by a composite score: Dividend Yield (normalized to 0–100) × 40% + Quality Score × 30% + Risk Score × 30%. This weights current income attractively while ensuring the dividend is backed by profitability and balance sheet safety. Stocks must have a positive dividend yield, a market cap above $1 billion, and non-null Quality and Risk scores to qualify. The ranking updates daily as underlying financial data refreshes.
How to Read This Div Score Ranking
The 'Score' column shows the composite dividend ranking score (0–100), not a single pillar score. Higher means a better combination of yield, quality, and safety. A stock with a moderate 3% yield but excellent quality and risk scores will outrank one with a 7% yield but weak fundamentals — because the 7% yield is less likely to be sustained. Check individual stock pages for the full UQS breakdown including all five pillar scores.
Best Dividend Stocks: Who Made the List and Why
Artisan Partners Asset Management Inc. leads the dividend ranking with a composite score of 93, combining an attractive yield with top-tier quality and financial safety in the Financial Services sector.
Evertz Technologies Limited earns the second spot at 86, reflecting strong dividend yield backed by consistent profitability and a fortress balance sheet.
Alliance Resource Partners, L.P. (Energy) scores 86 — a compelling combination of income generation and fundamental strength.
Weibo Corporation (Communication Services) scores 81 on the dividend composite, with yield supported by strong quality and risk metrics.
VICI Properties Inc. (Real Estate) scores 81 on the dividend composite, with yield supported by strong quality and risk metrics.
Full Div Score Ranking: Top 25 Stocks
| # | Stock | Sector | Div Score | UQS |
|---|---|---|---|---|
| 1 | APAM | Financial Services | 93 | 59 |
| 2 | ET.TO | Technology | 86 | 54 |
| 3 | ARLP | Energy | 86 | 57 |
| 4 | WB | Communication Services | 81 | 54 |
| 5 | VICI | Real Estate | 81 | 65 |
| 6 | AB | Financial Services | 80 | 62 |
| 7 | ABEV | Consumer Defensive | 79 | 61 |
| 8 | ARCC | Financial Services | 78 | 57 |
| 9 | ALX | Real Estate | 73 | 51 |
| 10 | FINV | Financial Services | 73 | 54 |
| 11 | WABC | Financial Services | 73 | 59 |
| 12 | FRU.TO | Energy | 72 | 47 |
| 13 | NVO | Healthcare | 72 | 67 |
| 14 | OCSL | Financial Services | 71 | 55 |
| 15 | APLE | Real Estate | 68 | 39 |
| 16 | AAT | Real Estate | 67 | 39 |
| 17 | FBP | Financial Services | 67 | 61 |
| 18 | FHI | Financial Services | 67 | 68 |
| 19 | ACT | Financial Services | 67 | 67 |
| 20 | ARR | Real Estate | 67 | 49 |
| 21 | AGNC | Real Estate | 66 | 45 |
| 22 | NRP | Energy | 66 | 59 |
| 23 | ABX.TO | Basic Materials | 64 | 75 |
| 24 | FCPT | Real Estate | 64 | 48 |
| 25 | GWO-PN.TO | Financial Services | 64 | 64 |
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Browse All StocksFrequently Asked Questions
What are the best dividend stocks to buy and hold?
The best dividend stocks for buy-and-hold investors combine three qualities: an attractive current yield (typically 2–5%), strong fundamental quality (high ROIC, wide margins, consistent earnings), and financial safety (low debt, strong cash flow coverage). The stocks on this page are ranked by a composite of all three. Companies that score well across yield, quality, and risk tend to sustain and grow their dividends for decades — the hallmark of a great income investment.
What is a good dividend yield?
A yield of 2–4% is solid for established companies. Above 4% is high yield — attractive for income but check if it's sustainable. Above 7% is often a warning sign (yield trap). The S&P 500 average is about 1.3–1.5%. More important than the current yield is whether the company can maintain and grow it — a 2% yield growing 10% annually is more valuable long-term than a stagnant 5% yield.
How do you find safe dividend stocks?
Check three things: (1) Free cash flow coverage — FCF should be at least 1.5x the annual dividend payment. (2) Payout ratio — below 60% for most industries leaves room for reinvestment and safety margin. (3) Balance sheet strength — manageable debt-to-equity and strong interest coverage. The UQS Quality and Risk pillar scores capture all of these dimensions. This ranking weights them at 30% each alongside yield (40%).
Are dividend stocks good for beginners?
Dividend stocks are excellent for beginners because they provide tangible cash returns regardless of stock price movements. This psychological benefit is real — receiving quarterly dividends reinforces the habit of long-term investing and reduces the temptation to panic-sell during downturns. Start with high-quality dividend payers (strong UQS scores) rather than chasing the highest yields, and reinvest dividends to compound returns over time.