My 5 Favorite Dividend Stocks to Buy Right Now

2 weeks ago 16

James Brumley, The Motley Fool

Sun, February 22, 2026 astatine 1:06 PM CST 6 min read

Does your portfolio request immoderate caller income investments? Maybe you're looking for a small much certainty -- and defensiveness -- present that a fewer excessively galore risky maturation stocks are overbought arsenic good arsenic overvalued? Whatever your extremity is, here's a rundown of my 5 favourite dividend stocks to bargain close now.

A enactment      speechmaking  "dividends" lies connected  apical  of a desk.

Image source: Getty Images.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

Coca-Cola is 1 of the apical go-to dividend names wrong the user goods space, and for evident reasons. Not lone is it the biggest beverage institution (as measured by marketplace cap), but it owns immoderate of the astir entrenched marque names.

If you're looking to measurement into 1 dividend-paying user staples sanction today, however, I'd opt for rival PepsiCo (NASDAQ: PEP) portion its forward-looking dividend output is 3.5% versus Coke's 2.6%. Although PepsiCo's higher output is yet the effect of the stock's comparative underperformance stemming from weakness with its nutrient and snack concern (PepsiCo owns Lay's arsenic good arsenic Quaker Oats), respective initiatives similar chips without artificial dyes and higher-protein options are yet starting to marque a affirmative interaction connected its apical and bottommost lines. This occurrence conscionable isn't yet being afloat reflected successful this ticker's price.

You whitethorn already cognize that pharmaceutical outfit Pfizer (NYSE: PFE) hasn't been capable to lucifer its COVID-driven 2022 gross of conscionable implicit $100 billion. It was truthful focused connected responding to the pandemic that it fto its pipeline and portfolio get a small thin. The banal has paid the terms ever since.

The institution hasn't simply been sitting connected its hands, however. Although it's inactive got enactment to do, aft immoderate acquisitions and continued probe and improvement (R&D) efforts, Pfizer expects to motorboat 8 caller blockbuster drugs (drugs with yearly gross successful excess of $1 billion) by 2030, with caller drugs expected to nutrient a full of $20 cardinal worthy of yearly gross by 2030. That should pump its yearly apical enactment up from astir $60 cardinal present to $80 cardinal then, with caller acquisitions similar 2022's acquisition of Arena Pharmaceuticals and 2023's $43 cardinal acquisition of oncology specializer Seagen mounting the signifier for continued gross maturation beyond 2030.

The constituent is, the aboriginal looks brighter than the caller past, and brighter than the stock's caller show suggests. You tin get successful portion Pfizer's forward-looking output stands astatine 6.3%.

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