Without devoting much brainpower to the topic, it’s easy to understand the allure of monthly dividend stocks for investors. Who wouldn’t want to see dividend checks hit their account more frequently, right?

However, retirees covering expenses with dividends and investors in the accumulation phase covet these stocks and ETFs for more than just psychological reasons, including the high yields and targeted sector exposure, to name a few. Yet, despite these benefits, investor caution is needed, as there is no shortage of underperformers in the mix.

With this in mind, we compiled our list of the top monthly dividend stocks and ETFs, as it can be challenging to identify the true standouts.

Our shortlist of monthly dividend stocks to buy is based on select screening criteria that we apply to a universe of income stocks to identify reliable picks with consensus 'buy' and 'strong buy' ratings. For an extra margin of safety, our screens filter out any stocks that have negative price returns over the past five years.

While monthly income may be important, we also suggest considering dividend stocks that pay quarterly dividends. The universe of options increases for investors wanting to buy the best dividend stocks, or to find reliable payers with decades of rising payouts, such as dividend kings and dividend aristocrats.

There is a wealth of diversified options when investing in monthly income ETFs, including equity, derivatives, alternatives, and fixed income ETFs. We’ve compiled our list to include only equity, equity derivatives that utilize options strategies, and fixed income. Our ETF list below includes leaders in each category after taking into account assets under management, yield, and each fund's expense ratio.

Our list of the best dividend ETFs is also worth reviewing to discover other diversified investment vehicles that offer quarterly payouts.

Monthly dividend stocks are shares of companies that pay out dividends every month. These companies typically offer generous yields, which makes them a favorite among retirees who use dividends to cover monthly expenses.

Beyond their payout cadences and high yields, companies that pay monthly dividends almost always operate in the financials, energy, or real estate sectors.

These sectors have ideal characteristics for turbo-charged payouts. The combination of favorable macroeconomic factors yields steady cash flows and companies that prioritize distributing profits to shareholders, especially in the case of REITs, which are required to distribute at least 90% of their taxable income.

While many monthly dividend stocks offer generous payouts, that’s not the primary reason why investors flock to these securities.

For retirees, these dividend stocks provide a steady income stream that serves as a replacement for their paycheck.

There’s also a psychological component that explains the allure of monthly payouts. Seeing dividend checks hit your brokerage account monthly can be a rewarding experience that you don’t get when investing in stocks that pay dividends quarterly.

Other benefits exist as well. Monthly dividend stocks offer exposure to select high-yield and stable cash flow sectors. A more frequent payout cadence can also work wonders for dividend reinvestment and dollar-cost averaging strategies, as it increases the number of opportunities to compound growth and increase share counts during price declines.

However, there are also drawbacks to consider. It’s practically impossible to build a diversified portfolio consisting solely of monthly dividend payers since many companies operate in a concentrated number of sectors. Additionally, the high-yield nature of these dividend stocks leaves little room for payout increases and reinvestment in company growth, which limits the potential for future dividend and share price growth.

The range of investment strategies increases significantly when investing in monthly dividend ETFs instead of stocks. The one unifying characteristic of these dividend ETFs is that there are very few low-cost options, with most funds charging higher expense ratios than popular traditional index-based ETFs from Vanguard, Schwab, and others, which have expense ratios under 0.10%. It’s not uncommon for monthly dividend ETFs to have expense ratios of around 0.50%, with some charging as high as 3.0% to 4.0%.

With this in mind, let’s review the most common types of monthly dividend ETFs.

These ETFs are primarily market capitalization and style-based funds that invest directly in a basket of stocks, paying dividends on a monthly basis. The market capitalizations of stocks invested in range from small to large-cap, with most styles being heavily value-focused.

Equity-based ETFs also include a popular segment of funds that utilize equity derivatives to supercharge yields. These ETFs most commonly employ covered call option strategies, providing exposure to specific stocks, sectors, or indexes.

One example includes the ever-popular JPMorgan Equity Premium Income ETF (

) fund, which dominates topic coverage on Reddit's popular 

Taxes should be considered when investing in such derivatives ETFs, since income can be taxed at ordinary rates, which reduces the after-tax yield. Furthermore, select equity derivatives ETFs offer sky-high yields, which should raise some red flags to conduct more research.

Monthly dividend ETFs are also popular among bond investors seeking reliable income and diversification. There is a wide array of ETFs in this category, including funds that invest in corporate, municipal, and government bonds, ranging from ultrashort to long-term.

Outside of equity and fixed income ETFs, there are other options to consider when seeking monthly income.

Asset allocation ETFs invest in a mix of asset classes determined by risk.

Commodity ETFs in this category commonly invest in oil, gold, and silver.

Currency ETFs that pay monthly dividends offer exposure to individual currencies, whereas others provide exposure to cryptocurrencies.

Are monthly dividend stocks or ETFs better?

Investor-specific goals will ultimately determine the most suitable approach to generating monthly income, whether that’s through direct stock ownership or dividend ETFs.

Let’s start with ETFs. Investors seeking a buffet of options across asset classes and securities are best served by focusing on dividend ETFs rather than individual stocks.

Dividend ETFs can provide instant diversification, especially when cornering the equity-focused segment of monthly payers. The various small to large-cap equity-focused monthly dividend ETFs available offer exposure to broad market indexes, which you can’t access when investing in companies paying monthly dividends that are heavily concentrated in a small number of sectors.

Investors can also gain exposure to a wide range of asset classes and strategies with ETFs that pay monthly. These include exposure to fixed income, currency, derivatives, and commodity asset classes, as well as long or short strategies.

On the other hand, investing directly in individual monthly dividend stocks has select advantages, particularly for investors targeting exposure in the financial, energy, and real estate sectors.

However, successful stock picking takes years of experience. It demands a steady hand and a long-term mindset, with many seasoned investors never forgetting the sting of their likely numerous investing mistakes that turned into lessons learned.

Deciding between dividend ETFs and stocks ultimately comes down to the level of control needed and risk tolerance. In most scenarios, ETFs are the better option for more risk-averse investors who value simplicity.

But thankfully, investors aren’t beholden to just one approach, explaining why many own a mix of stocks and ETFs in their brokerage accounts.

What fund providers offer monthly dividend ETFs?

There’s no shortage of issuers offering monthly dividend ETFs. The five largest fund providers in this space, ranked by assets under management, are as follows: BlackRock, Vanguard, State Street, JPMorgan Chase, and Charles Schwab. Most of the largest monthly income funds invest in fixed-income securities.

What ETF pays the highest monthly dividend?

The YieldMax Short COIN Option Income Strategy ETF (

) currently holds the top podium spot as the highest-yielding monthly dividend ETF. The fund has a dividend yield of 188.95%.

Best Monthly Dividend Stocks for June 2025

Want a shortlist of high-conviction dividend stocks? Secure access to the top 10 dividend stocks watchlist when you 

High-dividend stocks are predictably appealing to income investors due to sky-high yields, which range from the high single digits to the low double digits, making them ideal for retirees and other income-focused investors.

However, high payouts often come with more risk, as the market is full of securities that should come with a warning label rather than a nod of approval. In this guide, we provide a shortlist of the best high-yield dividend stocks, featuring appetizing yields, strong fundamentals, and characteristics of safe dividends.

We built this list of companies with high dividend yields by screening for buy-and-hold stocks with stable payouts and low risk profiles. Several key factors we focus on include yields exceeding 3%, conservative payout ratios, a history of EPS and free cash flow growth, consecutive years of dividend growth, and consensus buy ratings, along with other proprietary factors used to identify the safest high-yield dividend stocks.

These criteria are especially important for stocks with elevated payouts, which have a high risk of dividend cuts and overall volatility compared to the 

) – 11.32% yield | 2.48% 5y dividend CAGR

) – 10.35% yield | 4.38% 5y dividend CAGR

) – 8.22% yield | 24.57% 5y dividend CAGR

) – 7.22% yield | 1.20% 5y dividend CAGR

) – 7.09% yield | 10.15% 5y dividend CAGR

) – 6.80% yield | 3.59% 5y dividend CAGR

) – 5.61% yield | 3.43% 5y dividend CAGR

) – 5.50% yield | 7.55% 5y dividend CAGR

) – 4.88% yield | 6.14% 5y dividend CAGR

) – 4.71% yield | 4.20% 5y dividend CAGR

) – 4.61% yield | 4.87% 5y dividend CAGR

) – 4.54% yield | 10.03% 5y dividend CAGR

) – 4.49% yield | 17.82% 5y dividend CAGR

) – 4.40% yield | 28.58% 5y dividend CAGR

) – 4.09% yield | 5.86% 5y dividend CAGR

) – 3.88% yield | 106.46% 5y dividend CAGR

) – 3.65% yield | 9.64% 5y dividend CAGR

) – 3.28% yield | 5.39% 5y dividend CAGR

) – 3.04% yield | 12.30% 5y dividend CAGR

) – 3.00% yield | 16.50% 5y dividend CAGR

The highest dividend yield stock in our list is Blue Owl Capital Corporation, which has an 11.32% yield. Blue Owl is a business development company in the financial sector that invests in a range of secured and unsecured loans.

While the company boasts a sky-high yield, it may not be a suitable fit for everyone, as it carries more risk compared to companies with decades of consecutive dividend increases, such as dividend aristocrats and dividend kings.

High-dividend stocks are shares of companies that pay above-average yields, most often in slow-growth sectors such as telecommunications, utilities, and energy, as well as REITs and MLPS.

But what’s considered above average? The answer depends on the type of high-yield stock.

Let’s review mid-cap and large-cap stocks, using the S&P 500 as a proxy for size. According to The Wall Street Journal, the S&P 500 yields 1.31%(1). Accordingly, large-cap companies with yields above 2% to 3% could be considered high-yielding by definition. However, the more practical range for mid-cap and larger stocks is 4% to 10%.

Yields are frequently higher when focusing on specialty categories, such as REITs and MLPs, which can offer yields reaching north of 10%.

Beyond yield, high-dividend stocks are attractive to income investors for several more reasons. Firstly, these stocks offer total return benefits in down markets since they pay throughout market cycles. High-yield stocks also act as a hedge against inflation and can be attractive in low-interest-rate environments, albeit with more risk than bonds.

But they aren’t without risks, including plummeting share prices in the event of a dividend cut, high sensitivity to interest rate fluctuations, and concentration in slow-growth sectors that limit price appreciation.

Finding good high-yield dividend stocks is similar to researching any type of dividend stock. Reviewing payout ratio, free cash flow, and debt trends quickly provide critical dividend insights.

Where high-dividend stocks start to diverge is the heightened focus on free cash flow and balance sheet fundamentals to ensure dividend payouts are sustainable. Pay particular attention to cash flow growth, debt-financing trends, interest coverage ratios, debt ratios, and efficiency metrics, such as ROIC.

One trap to avoid is reviewing the wrong fundamentals for certain categories of high-dividend stocks. For example, examining the EPS payout ratio may not be useful for REITs, which almost always have exceedingly high ratios.

REITs are better assessed using funds from operations, as this metric provides better insights into operating performance than earnings, which are heavily influenced by depreciation and amortization charges, as well as gains or losses on property sales.

Banks follow a similar differentiation theme. Net interest income, net interest margin, and ROE combined paint a better picture of bank operating performance than reviewing free cash flow.

REITs are shares of companies that own, manage, or finance income-producing real estate assets. These assets encompass residential, commercial (e.g., retail and office), and healthcare sectors. REITs offer turbo-charged yields upwards of 10% since they are required to distribute 90% of taxable income to shareholders. However, investors should consider dividend taxes, as dividends received from REITs are considered ordinary income, thereby reducing the after-tax yield.

MLPs combine the liquidity benefits of public companies with the tax advantages of private partnerships. Like REITs, MLPs must distribute at least 90% of their earnings to shareholders, resulting in some of the highest stock yields, which can exceed 10%. MLPs primarily invest in energy assets, commonly mid-stream oil and gas pipelines, storage, and processing infrastructure.

The primary downsides of investing in MLPs include tax complications related to K-1 filing requirements, concentrated exposure to the energy sector, and heightened interest rate sensitivity.

Select slow-growth sectors with wide moats possess the ideal characteristics for sustainably high payouts. Utilities often have monopoly and duopoly advantages due to regulation, whereas legacy telecommunications and energy companies have high barriers to entry. Regardless of the source of their moats, these companies tend to have stable cash flows and strong pricing power, resulting in dividend safety and higher-than-average yields.

However, debt levels and free cash flow need to be scrutinized, as companies in high-yielding sectors often rely on debt-financed growth.

Yield traps are stocks that initially appear attractive but may harbor significant risks due to deteriorating fundamentals and unsustainable dividend payouts. Yield traps most often result from a plummeting share price, which inflates the yield, or an unsustainable dividend.

When the yield approaches the mid-to-high single digits, it’s worth looking beneath the surface, or investors may be left licking their wounds when a dividend cut hits. Common signs of a dividend trap include the following.

A high and increasing payout ratio without a commensurate earnings and cash flow increase.

Declining revenue, along with deteriorating earnings and cash flow coverage of dividends.

Over-reliance on debt to finance operations and dividend payouts.

A history of dividend cuts or suspensions, particularly for companies in disruptive or declining industries.

It’s important to consider that just because one of these factors is signaling danger, it doesn’t necessarily mean the stock is a yield trap. More than anything, investors should view poor performance across any single metric as a flag to dig deeper.

Should you reinvest or take dividends as cash?

The decision to reinvest dividends from high-dividend stocks or pocket the cash depends on your investing goals.

For retirees, it’s typically a simple decision: take the income to cover ongoing expenses, especially for investors with a low risk tolerance.

Long-term investors with a greater appetite for risk may take either approach, though reinvesting dividends makes the most sense when investing over decades to take advantage of compounding.

Regardless of the chosen strategy, we include a dividend reinvestment feature within our 

, allowing you to enable reinvestment for each security to see how dividend income and portfolio growth are impacted.

In most scenarios, ETFs are almost always the best low-cost option, especially for beginner investors and those who don’t want to take on another hobby in their already busy schedules. Successfully outperforming the market by picking individual stocks is incredibly difficult and requires years of experience.

ETFs are managed by seasoned professionals and offer instant diversification, which is especially important since high-yield stocks have an elevated risk of dividend cuts. However, 

 aren’t without downsides. The yields are typically lower than those of individual stocks, and share price growth is limited.

Stocks may offer higher payouts, more upside potential, and more control, allowing investors to gain exposure to individual stocks and sectors. But the increased volatility and risk aren’t suitable for those lacking experience. Another ding on investing in individual stocks for targeted sector exposure is that high-quality sector-specific ETFs are available from most major fund companies.

https://www.wsj.com/market-data/stocks/peyields

Best High-Dividend Stocks for June 2025

Some dividend stocks are diamonds, whereas others are just polished rocks with questionable dividend sustainability. That’s especially true of high-yield dividend stocks, which offer high payouts but also carry high risks with limited upside for dividend growth.

Fortunately, time-tested alternatives exist. The best dividend growth stocks have a history of steadily boosting payouts for years, backed by solid fundamentals and rising share prices. But what are the dividend dynasties in a market full of imposters?

To help answer that question, we’ve compiled our shortlist of top dividend growth stocks that have a stable history of dividend growth and healthy fundamentals.

We developed our dividend growth stocks list based on proprietary screening criteria that focus on dividend growth, dividend safety, strong fundamentals, a history of share price appreciation, and analyst consensus. The resulting fine-tuned shortlist is below, ordered by dividend yield.

) – 2.66% yield | 14.59% 5y dividend CAGR

) – 2.13% yield | 16.15% 5y dividend CAGR

) – 1.77% yield | 10.25% 5y dividend CAGR

) – 1.61% yield | 10.18% 5y dividend CAGR

) – 1.47% yield | 10.42% 5y dividend CAGR

) – 1.35% yield | 13.25% 5y dividend CAGR

) – 1.32% yield | 17.32% 5y dividend CAGR

) – 1.27% yield | 20.11% 5y dividend CAGR

) – 1.07% yield | 10.80% 5y dividend CAGR

) – 1.07% yield | 13.70% 5y dividend CAGR

) – 1.06% yield | 14.87% 5y dividend CAGR

) – 1.13% yield | 14.58% 5y dividend CAGR

) – 1.04% yield | 11.29% 5y dividend CAGR

) – 0.92% yield | 16.22% 5y dividend CAGR

) – 0.84% yield | 15.39% 5y dividend CAGR

) – 0.77% yield | 11.05% 5y dividend CAGR

) – 0.71% yield | 21.43% 5y dividend CAGR

) – 0.71% yield | 10.24% 5y dividend CAGR

) – 0.54% yield | 11.60% 5y dividend CAGR

) – 0.54% yield | 14.43% 5y dividend CAGR

) - 0.52% yield | 13,17% 5y dividend CAGR

As our list demonstrates, not all dividend growth stocks have high yields. Check out our guides to the 

Dividend growth stocks are a popular choice for investors seeking a balance of income and share appreciation. Companies in this category have a proven track record of consistently increasing payouts for years, such as dividend aristocrats and dividend kings.

This consistent track record of growth stems from stable earnings growth and a shareholder-friendly capital allocation policy that rewards investors with growing payouts, which is especially attractive for long-term investors building wealth through compounding.

However, the primary downside is inherent in the blended nature of dividend growth stocks. Shares of these companies lack the price appreciation potential of growth stocks and offer more modest yields compared to high-dividend stocks.

The decades-long culmination of consistent dividend growth 

 share price growth creates a double-compounding effect that has historically been a profitable investing formula.

Case in point: ProShares research shows that a $10,000 basket of dividend aristocrats stocks (a proxy for quality dividend growth stocks) grew to over $60,000 from 2005 through 2023, vastly outperforming the S&P 500 with less volatility(1).

This study also highlights the benefits of diversifying exposure with a basket of stocks, which 

One downside for income-focused retirees investing in dividend stocks is that dividend growth stocks tend to have low yields, typically below 2%.

Such low yields aren’t ideal when relying on dividend income to cover expenses, but do offer dividend growth upside, which is more important for patient investors building their nest eggs.

Beyond dividend yield, several other key factors should be considered when searching the market for new ideas.

A consistent dividend growth rate over multiple years. We recommend at least a 5% CAGR.

Consistent EPS and free cash flow growth over multiple years. We recommend at least a 5% CAGR.

At least a 10-year history of consecutive dividend increases.

An EPS payout ratio under 50% suggests that dividends have room for growth and aren’t in any imminent danger of being cut.

Market capitalization of at least $10 billion.

Starting with these key metrics helps filter through a massive universe of US-listed companies that have the potential to sustainably grow their dividends, offering an attractive total return proposition.

Other factors worth considering include analyst price targets, debt utilization, assessment of management quality, and common return-based metrics, such as return on equity and return on capital.

There’s a saying that captures a mentality we believe leads to successful investing outcomes, and it goes “dividends are the ultimate cheat code for lazy people who want to grow wealth.”

What this saying doesn’t highlight is that it takes decades to compound investing successes, which can’t be measured using candlesticks on a minute-by-minute chart.

Yearly dividend raises from strong companies are modest in the beginning, but can grow to substantial payouts over decades.

Compounding dividend growth and share prices don’t meaningfully drive portfolio performance in the early years, but can generate impressive returns after decades.

Remember, the majority of Buffett’s wealth was generated after the age of 50, and his investing strategy has historically mirrored the characteristics of dividend growth stocks. Buffett’s wealth accumulation in his golden years may be some of the best evidence of the power of a long-term mindset and why he outshines his peers.

1. ProShares Dividend Aristocrats vs S&P 500, 

https://www.proshares.com/browse-all-insights/insights/why-dividend-growth-is-a-timeless-strategy

Best Dividend Growth Stocks for June 2025

There’s a reason why dividend stocks have a loyal fan base, and it’s perfectly captured by an investor favorite quote that goes, “dividends are the paycheck you didn’t work for but definitely earned.” That statement clearly highlights the passive income nature of investing in dividend-paying companies.

However, one less clear aspect is how to identify the best dividend stocks to buy and hold. To simplify, we’ve compiled a list of high-quality dividend stocks to help you find the right ones for your portfolio.

In the list below, we’ve included our top dividend stocks based on proprietary screening criteria that we’ve fine-tuned to identify historically safe dividend-paying companies with solid potential growth opportunities.

The core fundamentals we screen for are designed to surface companies with durable competitive advantages, excellent management teams, a positive history of share price returns for investors, and a commitment to rewarding shareholders with growing dividends.

) – 3.66% yield | 9.64% 5y dividend CAGR

) – 2.38% yield | 6.51% 5y dividend CAGR

) – 2.31% yield | 7.69% 5y dividend CAGR

) – 2.11% yield | 8.27% 5y dividend CAGR

) – 1.83% yield | 7.30% 5y dividend CAGR

) – 1.77% yield | 6.68% 5y dividend CAGR

) – 1.49% yield | 8.82% 5y dividend CAGR

) – 1.44% yield | 10.26% 5y dividend CAGR

) – 1.27% yield | 9.47% 5y dividend CAGR

) – 1.26% yield | 8.73% 5y dividend CAGR

) – 1.26% yield | 9.35% 5y dividend CAGR

 are also worth considering when seeking either higher yield or greater dividend growth than this catch-all dividend stocks list.

Choosing a suitable dividend investment strategy is just as important as finding the right stocks that pay dividends. We’ve outlined below several of the most popular strategies so you can decide which approach is right for you.

Most people investing for income will eventually weigh the decision between direct stock ownership and buying dividend ETFs. While both securities can provide safe and steady payouts, the right option depends primarily on the time you’re willing to commit to managing your portfolio and how much control you desire.

Direct stock ownership means you’re buying shares of individual companies that share a portion of their profits with shareholders. These companies range from blue-chip stocks with low yields to higher-yielding options, such as REITs.

Successful stock picking requires time, the right temperament, and deep expertise to identify the right picks that offer a balanced combination of income and share returns. Most DIY investors don’t have these balanced characteristics.

Research shows that individual stock investors tend to vastly underperform broad market indexes. The average investor generated an annualized return of 2.1%, compared to an annualized return of 8.2% for the S&P 500, according to Crews Bank & Trust research(1).

 are the ideal investment vehicle for the majority of people seeking to grow their wealth in the stock market, while minimizing risk compared to buying individual stocks.

On the other hand, dividend ETFs hold a basket of income-generating stocks. A professional fund manager selects a portfolio of stocks that track broad indexes or targets specific sectors and strategies, such as high-yield or dividend growth.

The benefit is instant diversification and professional management, ideal for hands-off and beginner investors who want to grow their wealth without adding another time-consuming hobby to their already busy calendars.

Thankfully, investors aren’t beholden to just investing directly in stocks or dividend ETFs. It’s common to blend both strategies to achieve the best of both worlds, diversification and targeted exposure, all within the same brokerage account.

Dividend growth investing is about identifying companies with a proven track record of consistently increasing their dividends year after year for decades. This style of investing may be most suitable for investors in the accumulation phase. However, some retirees can also benefit from the rising income streams.

Just consider a general rule of thumb that any money needed within five years may be best invested outside of the stock market.

The core benefits of dividend growth investing are that many of these stocks tend to be double-compounders, which grow both their dividends and share prices over time. Such growth is especially powerful when dividends are reinvested over decades.

But what should investors look for in a dividend growth strategy? Good dividend growth stocks tend to have the following characteristics:

A dividend growth CAGR of at least 10% over five years.

EPS and free cash flow growth of at least 5% over five years.

A low EPS payout ratio that provides room for dividend growth.

A multi-year history of increased dividends, demonstrating a commitment from management to share profits with investors.

Regardless of the investing strategy, people investing for retirement are often best off reinvesting their stock and ETF dividends, rather than pocketing the income to allocate elsewhere.

With dividend reinvesting, the income paid out by a company or ETF is automatically reinvested to purchase additional shares.

Investors are making their money work for them through the benefits of compounding, with increasing share counts boosting future payouts that are then reinvested in more shares, creating a cycle that repeats over and over.

 to demonstrate the power of reinvestment, investing $10,000 for 30 years with reinvestment enabled results in a portfolio value of $159,947, compared to just $105,911 without reinvestment(2).

Example scenario with dividend reinvestment is enabled for a $10,000 investment. Source: Dividend Watch

High-yield dividend stocks are a retiree favorite for covering expenses with dividends. These stocks typically offer dividend yields of at least 5% and are often found in sectors such as utilities, telecoms, real estate, and energy.

While high-yield stocks may sound like the perfect investment for everyone, it’s important to understand that high yields come with some downsides. High-dividend stocks tend to offer limited dividend and share price growth, and they can be volatile, with high sensitivity to inflation and interest rates.

Dividend investing is like navigating the stock market with different compasses. While some investors use a growth compass that always points toward companies consistently increasing their dividends, others follow a yield direction that guides them to the highest-yielding options.

Regardless of the approach, there are several groups of stocks to focus on for simplifying the search for good dividend-yielding stocks, as well as key fundamentals to review when investing in dividend stocks.

Dividend aristocrats are S&P 500 companies that have increased their annual dividend payments for at least 25 consecutive years. Dividend kings are not limited by S&P 500 inclusion, but have increased their annual payouts for at least 50 years. Both groups can be reliable sources for new stock ideas.

Once you have narrowed down your list of top dividend-paying stocks, several key fundamentals and metrics are worth comparing, including the following.

 - Annualized rate of growth for a dividend, often represented as the dividend CAGR.

 - Dividend per share divided by the price per share. Many blue-chip dividend stocks and dividend growers have yields ranging from 0.50% to 4%.