I’ve consistently found dividend stocks to be a reliable approach for building up an investment portfolio. Although I acknowledge the value of growth stocks and own some myself, investments in companies that provide a steady, dependable dividend are equally crucial for accumulating wealth over time.
One advantage of investing in dividend stocks is that they cater to investors at any stage. Whether you’re a beginner or have been building your portfolio for some time, dividends can significantly boost your savings. Aside from the profits earned when the stock price increases, you may receive quarterly dividend payments which you can choose to reinvest, thereby amplifying your holdings and fostering faster wealth growth.
As a retiree myself, I can’t help but sing the praises of dividend stocks! They’re my go-to source for a steady stream of income during these golden years. Many fellow seniors like me use these regular payouts to cover our daily expenses, which helps us preserve our retirement funds for future needs. It’s like having a reliable, hardworking employee who consistently sends you a portion of their wages!
Among numerous dividend-paying stocks, my preference leans towards those issued by well-established corporations offering reliable distributions. Here’s a look at three such options that might be beneficial for your portfolio today.
1. Coca-Cola
I’m a fan of The Coca-Cola Company (KO) for several reasons. Firstly, it holds a commanding spot in the beverage sector, projected to maintain the No. 1 position by 2024 with an impressive 48% market share, as per Statista. However, it’s not just about the iconic Coca-Cola fizzy drink; they offer a variety of products. This includes bottled water, sports drinks, tea, juices, and even a range of alcoholic beverages. In total, the company boasts an impressive 30 brands, each with a value exceeding $1 billion.
In the initial quarter, earnings dipped by 2% to reach $11.1 billion, primarily due to reduced sales in North America. However, Coca-Cola offset some of these losses through boosted sales in China, India, and Brazil. The company’s wide global presence will serve as a protective measure against potential weakness in any specific region.
The net income for shareholders was reported at $3.33 billion, equivalent to $0.77 per share, marking an increase from $3.18 and $0.74 per share in the initial quarter of 2024. To top it off, Coca-Cola presents a substantial dividend return of approximately 2.9%.
2. American Express
Similarly to how Coca-Cola is one of Warren Buffett’s preferred dividend stocks within the Berkshire Hathaway portfolio, American Express (AXP) holds this position as well. In fact, Berkshire Hathaway currently owns a substantial 21.6% stake in American Express, with a total of 151.6 million shares in their possession.
American Express distinguishes itself among other credit card providers by catering primarily to a wealthier demographic, with a focus on premium products like gold, platinum cards, and corporate accounts. From my personal experience as an American Express customer, I can confirm that the travel benefits are exceptionally generous.
American Express, unlike Visa and Mastercard, not only issues cards but also runs its own payment network. This enables it to offer credit and generate revenue through the interest charged on loans.
In the initial three months of the year, American Express reported a revenue of approximately $2.6 billion per share, marking an increase compared to the same period last year which stood at $2.4 billion. Moreover, the company’s dividend return is around 1%.
3. McDonald’s
McDonald’s (MCD) is the leading fast-food chain globally, operating in excess of 43,000 outlets across more than 100 nations. Originating from a solitary restaurant in California, McDonald’s has transformed the fast-food sector with its uniform quality and franchise system.
Following a wave of customer discontent last year due to price hikes and inflation, I’ve noticed McDonald’s taking a proactive approach by emphasizing value menus and special deals. For instance, they’re bringing back their chicken snack wraps this spring. Additionally, they’re boosting footfall by leveraging their loyalty program, which caters to approximately 175 million active customers across 60 global markets, who engage with the program at least every 90 days. McDonald’s attributes a significant portion of its $30 billion in overall sales to this loyalty membership program.
2024 saw a modest decrease of 0.1% in global sales, and this decline persisted into the first quarter of 2025, with sales dropping by another 0.1% compared to the previous year. In the United States specifically, sales dropped by 3.6% from the same timeframe last year, and the earnings per share fell by 2%, amounting to $2.60.
Nevertheless, McDonald’s intends to establish approximately 2,200 new outlets by the year 2025, aiming to increase its worldwide revenue growth beyond 2%. Given its 2.4% dividend yield, McDonald’s is an appealing choice for long-term investors as a high-quality dividend stock.
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2025-07-20 10:44