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By Terel Miles on April 6, 2023

11 Consistent Dividend Stocks To Buy (April 2023)

Consistent dividend stocks can provide beginner to advanced investors with an extraordinary passive income stream when done correctly.

But investing in dividend stocks can be tricky when investors don’t pay attention to the company’s history and dividend growth rate.

In this article, we will list the 11 Most Consistent Dividend Stocks to Buy and Hold in 2023 and beyond for income-oriented investors alike!

11 Consistent Dividend Stocks for 2023

1. NextEra Energy (NYSE: NEE)

NextEra Energy is an American energy diversified holding company with approximately 58 GW of generating capacity. It is the largest electric utility holding company in the U.S. by market capitalization and employs more than 15,000 people in the United States and Canada.

Its subsidiaries include Florida Power & Light (FPL), NextEra Energy Resources (NEER), NextEra Energy Partners, NextEra Energy Services and Gulf Power Company.

Florida Power & Light (FPL) is the largest of its subsidiaries with more than 5 million customer accounts. Their services cover nearly half of the State of Florida and is the third largest electric utility holding company in the United States.

NextEra Energy Resources and its affiliated entities combine as the world’s largest generator of renewable energy through wind and solar.

Dividend Yield: 2.43%
10-Yr Dividend Growth Rate: 8.75%
Payout Frequency: Quarterly (Every 3 Months)
Payout Ratio (March 2023): 55.71%

Why NextEra Energy?

NextEra Energy is one of the world’s largest providers of renewable energy and is set to benefit from the United States Inflation Reduction Act. Government policies and tax rebates like the Solar Production Tax Credits will help reduce carbon emissions and save their subsidiary, FPL, more than $400 million annually.

Including their large footprint of renewable energy capacity, they had planned investments of more than $50 billion in 2022. This will help expand their utility business and create good paying jobs for Americans.

If you’re looking for a premier dividend energy stock to buy and hold over the next few decades, NextEra Energy should be the first place to look!

2. Brookfield Renewable Partners LP (NYSE: BEP)

Brookfield Renewable Partners L.P. is a renewable energy power company based in Toronto, Canada that is 60% owned by Brookfield Asset Management. Their portfolio consists of hydro-electric, solar, wind assets, and energy storage facilities spanning North America, South America, Asia and Europe. With approximately 24,000 MW of generating capacity, Brookfield is one of the largest renewable energy companies in the world.

As a robust leader in the decarbonization transition, Brookfield Renewables has more than $68 billion in AUM across their entire portfolio. From 2013 – 2022, they have grown their cash distribution at a 6% CAGR.

Brookfield Renewable Partners had annual revenues of more than $4 billion in the 2021 calendar year.

Dividend Yield: 4.38%
10-Yr Dividend Growth Rate: 7.36%
Payout Frequency: Quarterly (Every 3 Months)
Payout Ratio (March 2023): -213.30%

Why Brookfield Renewables Partners?

Brookfield Renewables Partners is a renewable energy company which is largely controlled by Brookfield Asset Management. The company commonly invests in renewable power assets such as Wind, Solar, Hydro-Electric and Energy Storage Facilities.

Brookfield continues to expand their footprint in Europe and South America. This includes their most recent acquisition of all of the solar assets of X-Elio, a solar power company based in Madrid, Spain. They purchased the remaining 50% stake from U.S. private equity firm KKR.

With a shifting regulatory environment and demand for clean energy across the globe, Brookfield Renewables Partners is a good long term bet on the worlds decarbonization transition. Despite the company losing money, they continue to expand their footprint with a growing dividend in a rapidly emerging industry.

3. Fortis (NYSE: FTS)

Fortis Inc is a diversified electric-utility holding company based in Newfoundland and Labrador, Canada. The company primarily operates in Canada, with assets in the Americas and the Caribbean.

Its assets include some 67% interest in Belize Electricity Limited (BEL), UNS Energy, and a 100% interest in ITC Holdings Inc, the largest transmission utility company in the United States.

As of March 2023, Fortis has grown to more than $64 billion in assets with more than 3.4 million customers globally.

Dividend Yield: 3.96%
10-Yr Dividend Growth Rate: 15.57%
Payout Frequency: Quarterly (Every 3 Months)
Payout Ratio (March 2023): 78.06%

Why Fortis?

Fortis Inc is a diversified electric-utility holding company based in Newfoundland and Labrador, Canada. The company holds a controlling interest in hydro-electric, natural gas and renewable power assets in Canada, the United States and the Caribbean.

In their most recent Q4 2022 results, they grew their net revenues more than 20% year-over-year with diluted earnings per share (EPS) up 11.59%. The company is pushing their renewable energy transition forward, with 3,400 M/W of wind, solar, and energy storage capacity by 2035.

With demand for clean energy continuing to accelerate over the next few decades, Fortis is uniquely positioned to benefit from increased government tax credits from in the jurisdictions they operate in. As one of the largest Utility providers in the United States and growing clean energy investments, Fortis should be a dividend growth stock that patient investors consider.

4. Abbvie (NYSE: ABBV)

AbbVie is an American publicly traded biopharmaceutical company founded in 2013. It originated as a spin-off of Abbott Laboratories. The company operates as a research-based pharmaceutical manufacturer. Some of AbbVie’s manufactured drugs include Humira, Imbruvica, Venclexta, Zinbryta, and Norvir.

Its primary drug Humira had approximately $22 billion in annual sales in 2022. AbbVie is among one of the world’s largest pharmaceutical companies by market capitalization operating in more than 170 countries.

As of March 2023, AbbVie has grown to more than $138 billion in total assets.

Dividend Yield: 3.96%
5-Yr Dividend Growth Rate: 17.97%
Payout Frequency: Quarterly (Every 3 Months)
Payout Ratio (March 2023): 84.80%

Why AbbVie?

AbbVie is an American publicly traded biopharmaceutical company with a growing portfolio of drugs treating autoimmune diseases including Crohn’s disease, rheumatoid arthritis, and plaque psoriasis.

While global net revenues have slowed in recent quarters, AbbVie continues to generate robust cash flows from operations. This has translated into a 17.97% CAGR in their cash distribution to shareholders.

AbbVie’s free cash flow margin remains strong, despite the high interest environment. As a leader in the research and development of solving some of the world’s biggest health issues, AbbVie remains a top healthcare dividend stock for the long term.

5. United Health Group (NYSE: UNH)

UnitedHealth Group is an American publicly traded biopharmaceutical company founded in 1977. The company operates as a holding company primarily through the selling of healthcare products and insurance services. They are one of the world’s largest healthcare companies by market capitalization, and are headquartered in Minnetonka, MN.

The company structure comprises four different divisions; UnitedHealthcare Employer and Individual, UnitedHealthcare Medical and Retirement, UnitedHealthcare Community and State, and UnitedHealthcare Global.

As of March 2023, UnitedHealth Group has a market capitalization of more than $430 billion, with approximately $212 billion in total assets.

Dividend Yield: 1.40%
10-Yr Dividend Growth Rate: 24.61%
Payout Frequency: Quarterly (Every 3 Months)
Payout Ratio (March 2023): 30.22%

Why UnitedHealth Group?

UnitedHealth Group is an American publicly traded pharmaceutical holding company with more than 4 decades of experience owning and operating diversified pharmaceutical assets.

With global net revenues of more than $324 billion in 2022, UnitedHealth Group is the world’s seventh largest company by revenue. In 2022, UnitedHealth Group grew by 13% as a result of higher demand for Optum and UnitedHealth core business segments.

UnitedHealth Group’s cash flow from operations remained strong, returning $13 billion to shareholders through dividends and share buybacks. With strong operating margins, free cash flow and increased demand for Optum Health, UnitedHealth Group can deliver strong dividend growth and shareholder returns over the next decade.

6. Johnson & Johnson (NYSE: JNJ)

Johnson & Johnson is an American publicly traded multinational company founded in 1886. The company operates as a holding company primarily through the selling of healthcare products, medical devices, pharmaceuticals and consumer packaged goods. They are one of the world’s largest healthcare companies by market capitalization, and are headquartered in New Brunswick, NJ.

The company structure is derived from more than 250 subsidiaries, with products sold in more than 175 countries worldwide.

As of March 2023, Johnson & Johnson has a market capitalization of more than $480 billion, with approximately $187 billion in total assets.

Dividend Yield: 2.93%
10-Yr Dividend Growth Rate: 6.40%
Payout Frequency: Quarterly (Every 3 Months)
Payout Ratio (March 2023): 66.12%

Why Johnson & Johnson?

Johnson & Johnson is one of the world’s most valuable companies, with more than a century operating in the healthcare and pharmaceutical industry.

In 2022, Johnson & Johnson saw total net revenues of approximately $95 billion. However, earnings per share shrunk 13.8% to $6.73, signalling short term weakness in their core business segment.

Despite a challenging macro environment and higher interest rates in 2023, Johnson & Johnson business remains resilient. They are 1 of 3 companies in the world to maintain a AAA credit rating, stronger than that of the United States government. Johnson & Johnson is a prime example of consistent dividend stocks increasing its annual distribution to its shareholders more than 62 years.

7. Mcdonald’s Corporation (NYSE: MCD)

McDonald’s Corporation is an American publicly traded multinational fast-food company founded in 1940. It is the world’s largest fast food chain company, with more than 69 million customers served daily. Their iconic golden arched logo is recognized by just about anyone from all walks of life.

With more than 40,000 franchises worldwide, they are the world’s second largest private employer.

As of March 2023, McDonald’s Corporation has a market capitalization of more than $200 billion, with approximately $50 billion in total assets.

Dividend Yield: 2.19%
10-Yr Dividend Growth Rate: 7.42%
Payout Frequency: Quarterly (Every 3 Months)
Payout Ratio (March 2023): 67.95%

Why McDonald’s Corporation?

McDonald’s Corporation is a multinational fast food chain company with operations in more than 175 countries. They are most commonly known for their signature Big Mac, cheeseburgers and french fries.

In 2022, McDonald’s saw total net revenues of approximately $23 billion. The company’s full year 2022 comparable sales grew 12% year-over-year. However, its operating income shrunk due to shifting global macro economic uncertainties. This resulted in full year-over-year EPS shrinking 17% to $8.33.

With new challenges arising due to supply chain constraints and higher interest rates, McDonald’s comparable sales growth remained steady. Strong operating performance in Germany, France, Japan and Brazil will help further diversify their business, supporting growth in international markets. Despite shrinking EPS in 2022, McDonald’s has continued to grow its dividend at a 7.42% CAGR over the last decade.

8. Qualcomm (NYSE: QCOM)

Qualcomm Corporation is an American publicly traded semiconductor company founded in 1985. It is a global leader in research, development and manufacturing of semiconductor equipment and software.

With more than 36,000 employees worldwide, Qualcomm is the 8th largest semiconductor company by market capitalization.

As of March 2023, Qualcomm has a market capitalization of more than $140 billion, with approximately $49 billion in total assets.

Dividend Yield: 2.35%
10-Yr Dividend Growth Rate: 12.68%
Payout Frequency: Quarterly (Every 3 Months)
Payout Ratio (March 2023): 28.07%

Why Qualcomm Corporation?

Qualcomm Corporation is a multinational semiconductor company specializing in high performance semiconductors for telecommunications. It owns critical infrastructure including patents for 5G, 4G, CDMA2000 and other mobile communications.

In 2022, Qualcomm saw total net revenues of approximately $44 billion. The company’s net income increased to $11.78 billion in 2022 from 2021. Its operating income in 2022 rose 62% year-over-year to $15.86 billion despite heightened global supply chain constraints.

Over the last 10 years, Qualcomm has seen double digit dividend growth, at a roughly 12.68% CAGR. Furthermore, Qualcomm is set to benefit on the back of $39 billion in semiconductor incentives as part of the CHIPS and Science Act.

9. Caterpillar (NYSE: CAT)

Caterpillar is an American publicly traded infrastructure and construction company founded in 1925. It is a global leader and manufacturer in construction equipment, with an approximate 13% market share in the industry.

With more than 107,000 employees worldwide, Caterpillar is the 24th largest company in the Dow Jones by market capitalization.

As of March 2023, Qualcomm has a market capitalization of more than $120 billion, with approximately $82 billion in total assets.

Dividend Yield: 2.18%
10-Yr Dividend Growth Rate: 10.04%
Payout Frequency: Quarterly (Every 3 Months)
Payout Ratio (March 2023): 36.55%

Why Caterpillar?

Caterpillar is a multinational infrastructure company and the world’s largest manufacturer of construction equipment. It also operates a line of clothing for construction attire including work boots for the construction industry.

In 2022, Caterpillar saw total net revenues of approximately $59.4 billion. Despite global supply chain constraints, the company delivered double digit top line growth and strong gross margins of approximately 29%. Its operating cash flow rose 7.89% to $7.8 billion, despite increased pressure and limited materials for manufacturing of equipment.

Caterpillar is a staple in the infrastructure industry with almost a century of track record in business. The company is set to benefit from the Inflation Reduction Act, which will accelerate the demand for construction equipment for the development and installation of clean energy technologies. With a 10.04% CAGR over the last 10 years in its dividend, Caterpillar is among the elite of consistent dividend stocks for the long term.

10. Deere & Company (NYSE: DE)

Deere & Company is an American publicly traded infrastructure and agricultural machinery company founded in 1837. It is a global leader and manufacturer in agricultural machinery, diesel engines and heavy equipment, with an approximate 18% market share in the industry.

With more than 75,000 employees worldwide, Deere & Company is the 104th largest company in the United States by market capitalization.

As of March 2023, Deere & Company has a market capitalization of more than $122 billion, with approximately $91 billion in total assets.

Dividend Yield: 1.26%
10-Yr Dividend Growth Rate: 9.50%
Payout Frequency: Quarterly (Every 3 Months)
Payout Ratio (March 2023): 16.76%

Why Deere & Company?

Deere & Company is a multinational agricultural machinery company. It provides a number of heavy equipment machinery for the construction, forestry, golf, landscaping and related services.

In 2022, Deere & Company saw total net revenues of approximately $52.6 billion. Net income rose 19% year-over-year to $7.13 billion, despite supply chain constraints persisting from 2021.

Deere & Company has been in business for almost 2 centuries, delivering increased dividend growth to its shareholders on record. In addition, the company projects 2023 fiscal net income to be in the $8.0 – $8.5 billion range, projecting an approximate rise of 15-20% sequentially. With continued double digit net sales and net income growth over the next decade, Deere & Company is a staple for consistent dividend stocks.

11. The Home Depot (NYSE: DE)

The Home Depot is an American publicly traded home improvement company founded in 1978. It is the largest home improvement retailer in the United States, with an approximate 17% market share in the industry.

With more than 500,000 employees worldwide, it is the 27th largest company in the United States by market capitalization.

As of March 2023, The Home Depot has a market capitalization of more than $300 billion, with approximately $76 billion in total assets.

Dividend Yield: 2.93%
10-Yr Dividend Growth Rate: 20.44%
Payout Frequency: Quarterly (Every 3 Months)
Payout Ratio (March 2023): 45.54%

Why The Home Depot?

The Home Depot is a multinational home improvement company. It primarily sells construction tools, appliances, materials and related services.

In 2022, The Home Depot saw total net revenues of approximately $157.4 billion. Net income rose 4.1% year-over-year to $17.1 billion, despite a challenging operating environment.

Home Depot has paid dividends to its shareholders for over 3 decades, with exceptional shareholder returns over the last decade. The company is among the upper echelon of dividend growth stocks, having grown its dividend at a 20.44% CAGR over the last decade. The Home Depot remains one of the best consistent dividend stocks to buy and hold in 2023 and beyond.

Should You Buy These Consistent Dividend Stocks In 2023?

The last few years have been tough for growth stocks as the economy digests higher interest rates and earnings contractions. This has led many investors to search for recession proof stocks that provide safe and consistent dividends.

The benefits of investing in dividend growth stocks is that investors can get the best of both worlds of both income and growth. It’s important for beginners to analyze a company’s dividend growth track record and key financial metrics like; payout ratio, dividend yield and distribution per share.

Energy, healthcare and retail are common sectors in dividend investing that have a healthy track record of consistent dividend growth. If you’re an investor looking for both growth and income, these 11 consistent dividend stocks should be ones to consider.

Disclosure: The author holds a position in Brookfield Renewables Partners LP. Freedom Stocks has a disclosure policy.