3 Top-Rated Dividend Stocks To Buy In Q2 2021

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While high risk/reward investors focus on growth stocks, more conservative investors concentrate on less volatile stocks that pay dividends. Simply put, dividends are distribution payments a company makes to share profits with its stockholders. 

When looking for dividend stocks, investors can choose from an array of dividend strategies, but one that isn’t as well known to many investors is called the Dogs of the Dow. This strategy is based on selecting the highest dividend-paying stocks in the Dow Jones Industrial Average. The concept is to invest in the ten highest dividend-yielding, blue-chip stocks in the Dow at the beginning of each year.

This strategy has returned an average of 9.5% since 2000, outperforming the S&P 500’s 7.5% average return. So I thought I would take this strategy further and filter out those ten based on our POWR Ratings system. This resulted in three stocks with Buy ratings. So not only do these three companies offer dividends but are also more likely to offer price gains in the months ahead. That’s why I am highlighting Verizon Communications Inc. (VZ), Pfizer, Inc. (PFE), and International Business Machines Corporation (IBM) below.

Verizon Communications Inc. (VZ

VZ is one of the largest telecom companies in the U.S. It provides wireless and wireline services to retail, enterprise, and wholesale customers. The company serves about 89 million postpaid and 4 million prepaid phone customers and connects another 24 million data devices, like tablets, via its nationwide network, making it the largest U.S. wireless carrier.

With the largest customer base in the U.S., VZ is also more efficient than its competitors and therefore delivers higher profitability than its rivals. The company is pushing its core wireless business by expanding its fiber-optic network and deploying 5G wireless technology. VZ should expand its market share in the upcoming years due to its reputation and unparalleled experience.

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