My 2 Favorite Stocks to Buy Right Now

As an investor, I tend to favor owning robustly managed businesses that offer generous returns through steady, ideally increasing, dividend payments. Additionally, I enjoy purchasing equities when there’s a prevailing pessimism among market analysts regarding those particular stocks.

More recently, I’ve increased my holdings in a currently unpopular Dividend King, and given that my portfolio is already fully invested in this retail titan, I would gladly increase my stake in its high-dividend shares if I hadn’t done so already.

Here are my two favorite stocks to buy right now, assuming you’re a dividend lover like I am.

Adding to a Dividend King

For quite some time, I had Ventas (a healthcare-focused real estate investment trust, or REIT) in my portfolio. However, over time, the company underwent a significant transformation, shifting from primarily being a landlord to owning and managing its own properties. This change made it a different business than the one I initially invested in, so I decided to sell it and invest in PepsiCo, a consumer staples giant that was experiencing some challenges.

PepsiCo is not only a leading manufacturer of snacks but also a prominent player in the beverage industry. Moreover, it operates significantly in the packaged food sector as well. This company is highly diversified in the food industry, often compared favorably with its competitors in terms of size, distribution network, and research & development capabilities.

This company also holds the title of a “Dividend King,” boasting more than half a century of consecutive annual dividend boosts. Such an impressive track record doesn’t come about by chance; it requires a robust business strategy that thrives through both prosperous and challenging periods.

Currently, this isn’t an ideal moment. To put it another way, shortly after I purchased the stock, its value plummeted by an additional 15%. However, instead of selling, I decided to buy more, making it a complete investment in my portfolio. As it stands, the shares are approximately 30% lower than their peak in 2023, and the 4.3% dividend yield is close to the highest point in the stock’s historical range.

In simple terms, this company with a strong historical background in management is currently available at an appealing price, despite facing challenges such as inflation and sluggish growth at present. Such situations are common, but I’m optimistic about PepsiCo’s long-term resilience. Eventually, I anticipate the stock market will recognize its worth with a higher valuation. For now, I’m content to earn a substantial and continuously increasing dividend.

I’d add more of this high-yielder if I didn’t already own so much

Realty Income, a Real Estate Investment Trust (REIT) that specializes in single-tenant retail properties. This investment is already fully represented in my portfolio, so I won’t be increasing my holdings for the sake of diversification. However, I am content with reinvesting dividends at the current rate, and I would encourage those who don’t currently own it to give it a thorough examination.

Realty Income is known as the largest company in the Net Lease Real Estate Investment Trust (REIT) sector, implying that its tenants typically cover the majority of expenses related to property management. Although it primarily deals with retail properties, it also owns industrial properties and a variety of other assets such as vineyards and casinos. The company has ventured into lending and providing asset management services for institutional investors, further expanding its portfolio. With a wide geographical reach spanning across the United States and Europe, Realty Income is considered one of the most diversified REITs available on the market.

For three consecutive decades, the company has increased its annual dividend payout. At present, the dividend yield stands at 5.6%. Unfortunately, the stock has dropped approximately 30% from its peak before the coronavirus pandemic. However, despite being slow and steady, Realty Income is a reliable choice given its high yield. For now, I plan to let the dividends continue to reinvest. When it’s time for me to rely on this income during retirement, I expect my patience will pay off – especially as Wall Street moved its attention away from stalwarts like Realty Income towards more dynamic sectors, such as mega-cap technology stocks.

I try to forget about what other investors think

The S&P 500 index, represented by the symbol ^GSPC, experiences fluctuations (up 0.24% today). However, I strive to pay as little attention to these market swings as possible because observing stock prices tends to cause me stress, which I prefer to avoid. Instead, my focus is on the companies I’m investing in. So long as I remain confident in a business, I will hold onto it and may even increase my ownership if I find it appealing at a reasonable price. At present, I believe PepsiCo and Realty Income are worth purchasing, and you might feel the same way.

2025-07-17 17:38

Adding to a Dividend King

I’d add more of this high-yielder if I didn’t already own so much

I try to forget about what other investors think

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