8 best dividend stocks to buy for Q1 2024

Companies can return some of their profits to shareholders by paying an annual dividend. This page picks out the top seven dividend stocks on the market this year.
By:  & 
Updated: Nov 30, 2023
Listen

Trade global markets with our top-rated broker, Interactive Brokers.

8/10
Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Register Entry Number 208159. Products are only covered by the UK FSCS in limited circumstances.
Visit site

This page covers the basics of a dividend stock and why you might want to invest in one. Then it goes through the best stocks that pay investors available in 2024 to help you get started.

What are the top dividend stocks to buy?

Copy link to section

Our experts have been through the best dividend paying stocks to choose their favourites and you can find them ranked in the table below. We’ve looked at data including annual dividend yield, dividend growth, payout ratio, forward yield and more, to help income investors find the best options.

Click the links to find up to date price information or read on for a summary of each company in turn.

#Stock symbolCompany nameDividend yieldTrade now
1HSBCHSBC Holdings6.92%
Trade HSBC

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

2BTIBritish American Tobacco9.39%
3MMM3M Company6.71%
Trade MMM

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

4VZVerizon Communications7.72%
Trade VZ

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

5PGProcter & Gamble2.50%
Trade PG

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

6JNJJohnson & Johnson3.03%
Trade JNJ

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

7KOThe Coca-Cola Company3.28%
Trade KO
Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Register Entry Number 208159. Products are only covered by the UK FSCS in limited circumstances.
8GILDGilead Sciences3.83%
Trade GILD

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

List chosen by our team of analysts, updated February 2024.

1. HSBC Holdings (NYSE: HSBC)

Copy link to section

HSBC dividend statistics

Copy link to section
  • Dividend yield: 6.97%
  • Payout ratio: 35%
  • Ex-Dividend Date: Aug 09, 2023
  • 5 Year Average Dividend Yield: 6.08%

HSBC Holdings is a financial services company headquartered in London and operating internationally. The well-known bank has paid dividends regularly for decades while delivering a track record of shareholder returns. In 2023, it announced an interim dividend of $0.09 per share and aims to pay a total dividend of $0.32 per share.

With a share price of over $35, it has a prospective dividend yield of approximately 9%, putting it higher than similar stocks in its industry. As one of the world’s largest banks, with heavy exposure to fast-growing Asian markets, HSBC generates significant cash flow to continue paying dividends.

Recent economic uncertainty has impacted its performance. However, its diversified business, including retail and corporate banking, has provided some stability. HSCB has the brand value to maintain strong dividends in the long run and is one of the best dividend stocks to buy in 2024.

Sign-up & trade HSBC Holdings

76% of retail CFD accounts lose money. Your capital is at risk.

2. British American Tobacco (NYSE: BTI)

Copy link to section

BTI dividend statistics

Copy link to section
  • Dividend yield: 7.51%
  • Payout ratio: 44%
  • Ex-Dividend Date: Dec 20, 2023
  • 5 Year Average Dividend Yield: 7.27%

As its name suggests, British American Tobacco is a consumer staples company that sells tobacco, e-cigarettes, and nicotine products. It has a global brand portfolio of some of the best known names in the tobacco industry, including Newport, Lucky Strike, and Vuse. These businesses generate steady cash flow, which helps BAT consistently pay dividends.

For over 20 years, British American Tobacco has rewarded shareholders by paying a dividend. It recently announced an interim dividend of £0.54 and is expected to pay a final dividend of £2.10 per share for the full year. This puts its annual dividend yield above 7%.

While the tobacco industry as a whole is facing headwinds, BTI is expected to grow revenue between 4 – 6% annually over the next 5 years. This growth is anticipated to come from increased prices for tobacco, heating products, and vapours. This additional earnings bodes well for income-seeking investors as there is plenty of room for solid dividend hikes.

Sign-up & trade British American Tobacco

3. 3M Company (NYSE: MMM)

Copy link to section

MMM dividend statistics

Copy link to section
  • Dividend yield: 6.77%
  • Payout ratio: 61%
  • Ex-Dividend Date: Aug 17, 2023
  • 5 Year Average Dividend Yield: 3.89%

3M is an American conglomerate that produces goods in a wide range of industries, including safety equipment, healthcare products, and optical films. Formed in 1902, 3M manufactures more than 60,000 products in total and operates in 70 countries around the world.

The company’s stock price has been trending up ever since the pandemic crash in March 2020. After a difficult couple of years, that pandemic offered the company a chance to reset and opened up new revenue opportunities, not least from its range of respirators which were suddenly in demand.

While the upward trend is good news, it’s the dividend that’s the main selling point for 3M. That dividend yields at about a 3% and has been increased every year for a staggering 63 years in a row. With over 6 decades of consistent yield increases, MMM is certainly one of the best dividend stocks that you can rely on to return money to shareholders come rain or shine.

Sign-up & trade 3M Company

76% of retail CFD accounts lose money. Your capital is at risk.

4. Verizon Communications (NYSE: VZ)

Copy link to section

VZ dividend statistics

Copy link to section
  • Dividend yield: 7.72%
  • Payout ratio: 52%
  • Ex-Dividend Date: Oct 08, 2023
  • 5 Year Average Dividend Yield: 5.01%

Broadband and cable company Verizon Communications operates the largest wireless network in the United States. For 15 consecutive years, the company has increased its dividend. Most recently, it raised its quarterly payout to 2.9%.

Beyond its wireless business, Verizon provides fibre optic broadband services to homes and businesses after it acquired fibre company Fios. It has also been heavily investing in deploying 5G, with its Wideband service available to over 230 Americans.

With revenue topping $130 billion in 2022 and wireless and home internet services backed by billions invested in network infrastructure, Verizon has more than enough free cash to support its dividend. For investors seeking income from a communication services stock, VZ is one of the best high dividend stocks in its industry, with a current yield of over 7.5%.

Sign-up & trade Verizon

76% of retail CFD accounts lose money. Your capital is at risk.

5. Procter & Gamble (NYSE: PG)

Copy link to section

PG dividend statistics

Copy link to section
  • Dividend yield: 2.51%
  • Payout ratio: 60%
  • Ex-Dividend Date: Oct 18, 2023
  • 5 Year Average Dividend Yield: 2.49%

Procter & Gamble is another major American conglomerate that produces consumer goods. It’s one of the oldest companies in the country, having been formed all the way back in 1837, and owns about 60 brand names in total, including 20 with net sales of over $1bn per year each.

In 2018, Procter & Gamble decided to restructure to focus on its most valuable brands and business areas. That decision has paid off spectacularly for its investors, as the stock has doubled in value in the years since then. In danger of being spread too thin at one stage, PG is now a streamlined company with 60 brands that produce just as much revenue as it was earning before.

That stock growth alongside an annual dividend yield of 2.5% makes Procter & Gamble an appealing stock to own. It looks well set for the future and it has an even prouder tradition of raising dividends than 3M does, having done so for 65 consecutive years.

Sign-up & trade Procter & Gamble

76% of retail CFD accounts lose money. Your capital is at risk.

6. Johnson & Johnson (NYSE: JNJ)

Copy link to section

JNJ dividend statistics

Copy link to section
  • Dividend yield: 3.03%
  • Payout ratio: 92%
  • Ex-Dividend Date: Aug 24, 2023
  • 5 Year Average Dividend Yield: 2.63%

Johnson & Johnson is a pharmaceuticals and consumer healthcare company. Founded in 1886, it’s been at the forefront of American healthcare for over a century. It’s one of the most valuable companies in the world and the largest healthcare stock by market capitalisation.

The company has been very successful for a long time. Its share price has been on the up and up, continually hitting new all-time highs at regular intervals. Even after a pandemic during which competitors like Pfizer and AstraZeneca won the race for a vaccine, JNJ is still at its highest ever point.

Like the companies above it in this list, Johnson & Johnson has a long tradition of raising its dividend. A relatively baby compared to the previous two, it has paid out for 59 years in a row and the yield sits at just over 3%.

Sign-up & trade Johnson & Johnson

76% of retail CFD accounts lose money. Your capital is at risk.

7. The Coca-Cola Company (NYSE: KO)

Copy link to section

KO dividend statistics

Copy link to section
  • Dividend yield: 3.30%
  • Payout ratio: 73%
  • Ex-Dividend Date: Nov 29, 2023
  • 5 Year Average Dividend Yield: 3.05%

The beverage company, Coca-Cola, is perhaps the most instantly recognisable brand in the world. First set up in 1892, The Coca-Cola Company is now a lot more than just its eponymous soft drink. It owns many other beverage brands as well, including the likes of Costa Coffee and Monster.

Despite the fact it makes most of its money from restaurants and bars, Coca-Cola coped with the pandemic quite well. Despite an initial cratering of the share price, it recovered thanks to a major uptick in sales through supermarkets. By 2021 the company was back to trading near its pre-pandemic price and close to its all-time high.

Coca-Cola has an extremely efficient operation thanks to the fact it has tight control over each part of its supply chain. It should also benefit as the world continues to open up again and its hospitality customers return. The dividend – raised for 59 years in a row if you’re counting – with a yield of almost 3% is a sweetener to go along with those good prospects.

Sign-up & trade The Coca-Cola Company
Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Register Entry Number 208159. Products are only covered by the UK FSCS in limited circumstances.

8. Gilead Sciences (NASDAQ: GILD)

Copy link to section

GILD dividend statistics

Copy link to section
  • Dividend yield: 3.82%
  • Payout ratio: 68%
  • Ex-Dividend Date: Sept 13, 2023
  • 5 Year Average Dividend Yield: 3.93%

Gilead is an American pharmaceutical company. Formed in 1989, it predominantly develops new drugs and treatments that it can patent and sell to the public. Its most famous drugs have aided the fight against Hepatitis, HIV, and flu, among other diseases.

Like many pharma companies that rely on patent protection for the majority of their revenues, Gilead’s fortunes rise and fall depending on the success of their drugs. That means the stock can be quite up and down. The company did well post-pandemic on news of a potential merger but has fallen since as it spent money on acquiring new companies.

Gilead has a good record of success, however, and snapping up other business is one way for companies to add new drugs and research to their portfolio. Its dividend history is a little different to the others on this list, as it has made the top five based on its yield – a tidy 4.5% – rather than longevity. That means it could have more upside than the rest in future.

Sign-up & trade Gilead Sciences

76% of retail CFD accounts lose money. Your capital is at risk.

Where to buy the best dividend shares

Copy link to section

The best place to invest in all of these shares is a stock app. We have pulled together a list of the best stock trading platforms below so that you can get started quickly by simply following the links in the table.

Sort by:

1
$ 10
Best offer
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
:
CySEC, FCA

eToro offers real assets only, no CFD products. eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the BD.

2
$ 100
Best offer
9.9
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
:
American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill
:
ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

3
$ 0
Best offer
9.7
Diverse stock selection providing investors with a diverse array of options for their portfolios.
Advanced trading tools aiding in executing trades with precision in the dynamic stock market.
Easy portfolio management.
:
ACH, Bank Wire, Check
:
CFTC, FCA, FINRA, IIROC, NFA, NYSE, SIPC
Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Register Entry Number 208159. Products are only covered by the UK FSCS in limited circumstances.

What is a dividend stock?

Copy link to section

A dividend stock is a company that makes regular dividend payments to shareholders as a portion of its profits. These dividend payments provide investors with a steady income stream on top of any share price appreciation.

Companies that issue dividend stocks aim to share financial success and attract long-term investors. The dividend yield measures the annual dividend as a percentage of the stock price – yields of 2-6% are typical, although it is possible to obtain high dividend yields running into double digits for some stocks. Companies announce dividends quarterly or annually, with payments on set ex-dividend dates.

A stock’s total dividends during the financial year make up its annual dividend profile. Investors seeking dividend stocks for income can build a portfolio mixing high-quality companies across sectors or invest in a dividend fund for diversification.

Before investing in the best dividend companies, you should consider the dividend history, payout ratio, earnings outlook, and overall company performance.

Are dividend shares a good investment?

Copy link to section

Dividend shares can form a valuable part of an investment portfolio for some investors, but you require careful evaluation based on individual financial goals and risk tolerance. Companies that consistently pay dividends are often mature, stable, cash generative firms across sectors like consumer goods and utilities.

This allows them to return capital to shareholders while still investing in the business. Historically, around nearly half of total stock returns have come from reinvesting dividends paid. So, dividend shares provide a tangible income stream and can improve total returns. However, stock and dividend volatility must be considered, as higher yields do not guarantee returns.

Seeking companies with strong underlying fundamentals that align with economic conditions is vital. Mutual funds and ETFs offer diversified exposure to high dividend stocks across many companies and sectors. These may provide a more stable income than relying on a few individual stocks. Dividend shares should not dominate at the expense of growth opportunities in an uncertain and constantly changing market.

Sign up to a broker to buy dividend stocks

Latest dividend stock news

Copy link to section



Sources & references
Risk disclaimer
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.
Prash Raval
Financial Writer
Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while... read more.