4 Dividend Stocks to Buy Now for Growth and Income

Dividend-paying stocks remain a critical element of any well-rounded investment strategy. Not only do they provide a steady source of income, but they also signal financial stability and shareholder-focused management. Research from Ned Davis and Hartford Funds reveals that over the last 50 years, dividend stocks have delivered more than double the returns of their non-paying counterparts.

However, not all dividend stocks are created equal. The best ones don’t just pay dividends—they consistently grow them. These companies combine strong cash flows with disciplined business practices to support both expansion and increasing payouts. For investors seeking steady income and long-term growth, we’ve highlighted four standout dividend stocks that offer attractive yields, proven growth histories, and promising outlooks for the year ahead.

Brookfield Renewable (NYSE: BEP)

Brookfield Renewable has established itself as a leader in clean energy, backed by a strong track record of dividend growth. Since 2001, the company has increased its dividend at a compound annual growth rate of 6% and plans to continue increasing payouts at an annual rate of 5% to 9%. With a yield of over 5%, Brookfield combines income with growth potential.

Brookfield’s success lies in its extensive portfolio and predictable cash flows. Most of its electricity is sold under long-term, inflation-linked contracts, providing financial stability. Its robust pipeline of renewable energy projects and strategic acquisitions is expected to drive more than 10% annual funds from operations (FFO) per-share growth over the next five years. For investors looking to align with the global shift to renewable energy while benefiting from reliable dividends, Brookfield Renewable is a standout choice.

Chevron (NYSE: CVX)

Chevron, a Dividend Aristocrat, boasts over 30 years of consistent dividend growth. The company currently offers an attractive 4.5% yield and has increased its dividend by more than 5% annually over the past five years, outperforming both the S&P 500 and its energy-sector peers.

Chevron’s disciplined capital allocation drives robust free cash flow, projected to grow at 10% annually through 2027, assuming oil prices average $60 per barrel. Additionally, its proposed acquisition of Hess could potentially double free cash flow by 2027 at $70 oil prices, creating more room for dividend increases. For income-seeking investors, Chevron’s strong financials and shareholder-focused approach make it a compelling pick.

Walmart (NYSE: WMT)

Walmart, a Dividend King with nearly five decades of annual payout increases, continues to dominate the retail space. Serving 255 million customers weekly, the company’s innovative approach to cost leadership and e-commerce has kept it at the forefront of the industry.

In fiscal Q3 2024, Walmart achieved 5.3% same-store sales growth, with e-commerce accounting for more than half of the increase. Backed by strong free cash flow—$6.2 billion over the first nine months of 2024—the company comfortably covered its $5 billion in dividends. Walmart’s performance propelled its stock to a 71% gain in 2024, significantly outpacing the broader market. With its reliability and growth trajectory, Walmart offers a unique mix of stability and upside potential for dividend investors.

Home Depot (NYSE: HD)

Home Depot has been a consistent dividend grower, increasing payouts annually since 2010. The home improvement giant’s 60% payout ratio ensures dividend safety, with a current yield of 2.7%.

While elevated interest rates and cautious consumer spending present short-term challenges, recent data suggests brighter days ahead. Existing home sales rose 4.8% in November, and anticipated Federal Reserve rate cuts could further stimulate home improvement spending. Home Depot’s proven ability to navigate economic cycles and its P/E ratio of 26, which remains below the S&P 500, make it an attractive option for investors seeking a balance of income and growth potential.

For investors focused on both current income and long-term growth, these four dividend stocks offer compelling opportunities to build a portfolio that can withstand market uncertainties while delivering steady returns.



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