Best Dividend Stocks to Buy Now (March 2026)
Last updated: March 3, 2026 — This page is updated monthly with fresh data. Bookmark it.
Most "best dividend stocks" lists just sort by yield and call it a day. You end up with yield traps — stocks paying 8%+ because the price is cratering and a dividend cut is around the corner.
We do it differently. Every stock on this list is screened through Benjamin Graham's intrinsic value formula — the same framework the father of value investing developed in 1962. If a stock doesn't trade below (or near) its Graham Value, it doesn't make the cut. Period.
The result: 10 dividend stocks that are actually worth buying right now, organized by risk tier so you can match picks to your comfort level.
Calculate your dividend income from any stock with our free Calculator
How We Pick: The Poor Man's Stock Method
Every stock on this list must pass three filters:
- Yield ≥ 2.5% — You're here for income. We're not listing growth stocks with token 0.5% dividends.
- Graham Value > Current Price — The stock must trade at or below its intrinsic value estimate, giving you a margin of safety.
- Dividend Track Record ≥ 10 Years — Minimum 10 consecutive years of dividend payments (increases preferred). No newcomers.
The Graham Intrinsic Value Formula
For every stock below, we calculate:
Graham Value = EPS × (8.5 + 2g) × 4.4 / Y
Where:
- EPS = Trailing twelve-month earnings per share
- g = Expected 5-year earnings growth rate (analyst consensus)
- 8.5 = Base P/E ratio for a zero-growth company
- 4.4 = Graham's benchmark corporate bond yield
- Y = Current AAA corporate bond yield (~5.1% as of March 2026)
A stock trading below its Graham Value has a margin of safety — Graham's most important concept. The bigger the margin, the more room for error in your analysis.
Disclaimer: Graham Values are estimates, not guarantees. They rely on analyst projections that may not materialize. This list is educational — not financial advice. Always do your own research.
March 2026: The 10 Best Dividend Stocks to Buy Now
At a Glance — Comparison Table
| Rank | Stock | Ticker | Sector | Yield | Price* | Graham Value* | Margin of Safety | Risk Tier |
|---|---|---|---|---|---|---|---|---|
| 1 | Altria Group | MO | Consumer Staples | 7.8% | $57 | $91 | 37% | Aggressive |
| 2 | Realty Income | O | Real Estate | 5.7% | $54 | $78 | 31% | Conservative |
| 3 | PepsiCo | PEP | Consumer Staples | 3.5% | $148 | $195 | 24% | Conservative |
| 4 | Chevron | CVX | Energy | 4.5% | $152 | $198 | 23% | Moderate |
| 5 | Target | TGT | Consumer Staples | 3.5% | $124 | $160 | 23% | Moderate |
| 6 | Johnson & Johnson | JNJ | Health Care | 3.2% | $158 | $203 | 22% | Conservative |
| 7 | Eversource Energy | ES | Utilities | 4.3% | $63 | $80 | 21% | Conservative |
| 8 | Verizon Communications | VZ | Telecom | 6.4% | $42 | $53 | 21% | Moderate |
| 9 | Pfizer | PFE | Health Care | 6.6% | $25 | $31 | 19% | Aggressive |
| 10 | 3M Company | MMM | Industrials | 2.7% | $136 | $168 | 19% | Aggressive |
*Approximate prices as of early March 2026. Verify current prices before making investment decisions.
Conservative Tier: Sleep-at-Night Dividend Stocks
These are fortress businesses — dominant market positions, decades of dividend growth, and the kind of stability that lets you sleep soundly during bear markets.
1. Realty Income (O) — "The Monthly Dividend Company"
| Metric | Value |
|---|---|
| Price | ~$54 |
| Graham Value | ~$78 |
| Margin of Safety | 31% |
| Dividend Yield | 5.7% |
| Dividend Streak | 30 years of increases |
| Payout Frequency | Monthly |
The thesis: Realty Income is one of only a handful of companies that pays dividends monthly — and has increased that payment for 30 consecutive years. The company owns 15,400+ commercial properties leased to tenants like Walgreens, Dollar General, and FedEx under long-term triple-net leases (tenants pay taxes, insurance, and maintenance).
After digesting its massive $9.3 billion Spirit Realty merger in 2024, Realty Income has emerged as the undisputed king of net-lease REITs. The stock has been range-bound as higher interest rates pressured REIT valuations — but that's created an excellent entry point. With a 5.7% yield paid monthly and a Graham Value well above the current price, this is the closest thing to a "bond replacement" in equities.
Why now: Interest rate cuts expected in late 2026 would be a direct catalyst for REIT repricing. You're getting paid 5.7% to wait.
2. PepsiCo (PEP) — The Snack & Beverage Empire
| Metric | Value |
|---|---|
| Price | ~$148 |
| Graham Value | ~$195 |
| Margin of Safety | 24% |
| Dividend Yield | 3.5% |
| Dividend Streak | 53 years of increases (Dividend King) |
| Payout Frequency | Quarterly |
The thesis: PepsiCo isn't just soda. Frito-Lay (the snack division) accounts for ~60% of operating profit and dominates with brands like Doritos, Lay's, Cheetos, and Tostitos. The company owns 23 brands that each generate over $1 billion in annual sales.
PepsiCo reported Q3 2025 revenue up 2.7% to $23.9 billion, beating estimates. The company guided for 2026 adjusted EPS of $8.50–$8.70, reflecting mid-single-digit growth despite inflation headwinds and trade tensions. With 53 consecutive years of dividend increases (a Dividend King), PepsiCo's commitment to shareholders is unquestionable.
At ~$148, the stock trades well below our Graham Value estimate of $195 — a 24% margin of safety for one of the most defensive businesses on the planet.
Why now: Consumer staples names have lagged the AI-driven market rally, creating rare value in defensive blue chips. PepsiCo's Frito-Lay pricing power is underappreciated.
3. Johnson & Johnson (JNJ) — Healthcare's Dividend Machine
| Metric | Value |
|---|---|
| Price | ~$158 |
| Graham Value | ~$203 |
| Margin of Safety | 22% |
| Dividend Yield | 3.2% |
| Dividend Streak | 63 years of increases (Dividend King) |
| Payout Frequency | Quarterly |
The thesis: After spinning off its consumer health business (now Kenvue) in 2023, Johnson & Johnson is a pure-play pharmaceutical and medical devices company. The pipeline is loaded: the Stelara biosimilar headwind is being offset by strong launches in oncology (Darzalex, Erleada) and immunology (Tremfya).
JNJ remains one of only two companies in the world with a AAA credit rating (the other is Microsoft). Sixty-three consecutive years of dividend increases make it the gold standard for income investors. The company generated $19.8 billion in free cash flow in 2025 — more than enough to cover its $11.8 billion in annual dividends.
Why now: Post-Kenvue spinoff, the market hasn't fully repriced JNJ as a higher-growth pharma company. The Graham Value reflects strong forward EPS growth expectations of 7-8%.
4. Eversource Energy (ES) — Quiet Utility Compounder
| Metric | Value |
|---|---|
| Price | ~$63 |
| Graham Value | ~$80 |
| Margin of Safety | 21% |
| Dividend Yield | 4.3% |
| Dividend Streak | 27 years of increases (Dividend Aristocrat) |
| Payout Frequency | Quarterly |
The thesis: Eversource serves 4 million+ utility customers across Connecticut, Massachusetts, and New Hampshire with regulated electric, gas, and water distribution. "Regulated" is the key word — earnings are predictable and backed by rate-base growth.
In Q3 2025, Eversource reported revenue up 5.1% to $3.22 billion and EPS of $1.19, beating estimates by $0.04. The company has refocused after selling its offshore wind investments (which were dragging down returns) and is now channeling capital into its core regulated utility operations.
Why now: With a 4.3% yield, 27-year dividend growth streak, and 21% margin of safety, Eversource is the kind of boring-but-beautiful utility that compounds wealth quietly.
Moderate Tier: Growth + Income Balance
These stocks offer higher yields or faster growth than the conservative tier, but come with more sector-specific risk.
5. Chevron (CVX) — Energy's Dividend Aristocrat
| Metric | Value |
|---|---|
| Price | ~$152 |
| Graham Value | ~$198 |
| Margin of Safety | 23% |
| Dividend Yield | 4.5% |
| Dividend Streak | 38 years of increases (Dividend Aristocrat) |
| Payout Frequency | Quarterly |
The thesis: Chevron is the best-run integrated oil major for dividend investors. While ExxonMobil gets more headlines, Chevron has the lower breakeven production costs, stronger balance sheet, and more disciplined capital allocation. The company can cover its dividend at roughly $50/barrel — well below current crude prices.
Chevron's pending $53 billion Hess acquisition (expected to close in 2026 after FTC resolution) will add premium Guyana assets to the portfolio, boosting long-term production growth. Meanwhile, the company generated $21 billion in free cash flow in 2025.
Why now: Energy stocks are out of favor as AI dominates the narrative. Chevron's 4.5% yield with 38 years of consecutive increases and a 23% margin of safety makes this a contrarian value play.
6. Target (TGT) — Retail Value at a Discount
| Metric | Value |
|---|---|
| Price | ~$124 |
| Graham Value | ~$160 |
| Margin of Safety | 23% |
| Dividend Yield | 3.5% |
| Dividend Streak | 57 years of increases (Dividend King) |
| Payout Frequency | Quarterly |
The thesis: Target has been punished by the market — down from $180+ highs — over concerns about consumer spending and inventory management. But this is a 57-year Dividend King with a best-in-class omnichannel strategy, same-day fulfillment capabilities, and exclusive private-label brands (All in Motion, Threshold, Good & Gather) that generate higher margins than national brands.
The company's 2025 recovery included improving comparable sales and expanded margins from better inventory management. At $124, you're buying a premium retailer at a discount-retailer multiple.
Why now: The market has priced in too much pessimism. Target's owned brands, small-format stores, and digital capabilities create durable competitive advantages that the current price doesn't reflect.
7. Verizon Communications (VZ) — Telecom's Cash Machine
| Metric | Value |
|---|---|
| Price | ~$42 |
| Graham Value | ~$53 |
| Margin of Safety | 21% |
| Dividend Yield | 6.4% |
| Dividend Streak | 20 years of increases |
| Payout Frequency | Quarterly |
The thesis: Verizon is unloved by growth investors, which is exactly why income investors should pay attention. The company generates $18+ billion in annual free cash flow, has the largest wireless subscriber base in the U.S., and is finally seeing stabilization in broadband through its Fios fiber and 5G fixed wireless access (FWA) offerings.
The 6.4% yield is well-covered by earnings (payout ratio ~55%) and free cash flow. Verizon isn't going to double in price — but it will consistently pay you while you hold. The debt load ($150B+) is the key risk, but it's manageable for a company with Verizon's cash generation.
Why now: At $42, Verizon trades near multi-year lows. The dividend is secure, the yield is fat, and the valuation gap to Graham Value is significant.
Aggressive Tier: Higher Yield, Higher Risk
These stocks offer the biggest yields and deepest discounts — but come with structural risks you need to understand.
8. Altria Group (MO) — The Controversial Cash Cow
| Metric | Value |
|---|---|
| Price | ~$57 |
| Graham Value | ~$91 |
| Margin of Safety | 37% |
| Dividend Yield | 7.8% |
| Dividend Streak | 55 years of increases (Dividend King) |
| Payout Frequency | Quarterly |
The thesis: Nobody wants to own a tobacco stock. But the math is undeniable. Altria generates $8+ billion in annual free cash flow, has increased its dividend for 55 consecutive years, and trades at the largest margin of safety on our entire list.
The secular decline in cigarette volumes (~5% per year) is real, but Altria offsets it with pricing power — smokers are remarkably price-inelastic. The company's NJOY acquisition (FDA-authorized e-vapor) and on! oral nicotine pouches provide a bridge to reduced-risk products.
At a 37% margin of safety with a 7.8% yield, the market is pricing in a worst-case scenario that hasn't materialized in 55 years of dividend increases.
Why now: If you can stomach the ESG risk, Altria offers the highest yield and deepest value on this list.
9. Pfizer (PFE) — Pharma's Turnaround Play
| Metric | Value |
|---|---|
| Price | ~$25 |
| Graham Value | ~$31 |
| Margin of Safety | 19% |
| Dividend Yield | 6.6% |
| Dividend Streak | 15 years of increases |
| Payout Frequency | Quarterly |
The thesis: Pfizer has been absolutely crushed since the COVID vaccine revenue cliff — down from $60+ to $25. But the selloff has created a genuinely interesting value situation. The company used its COVID windfall to acquire Seagen for $43 billion, gaining a world-class oncology pipeline (Padcev, Adcetris, Tukysa).
Pfizer guided for 2026 revenue of $61–$64 billion (up from $58.5B in 2025) as its Seagen oncology portfolio ramps. The 6.6% dividend yield is supported by ~$9 billion in annual free cash flow post-Seagen integration. This is a show-me story — the market needs to see pipeline execution — but the valuation already reflects considerable pessimism.
Why now: At $25, you're getting paid 6.6% to bet on one of the deepest pharma pipelines in the industry. If even half the Seagen portfolio delivers, this stock is deeply undervalued.
10. 3M Company (MMM) — The Industrial Turnaround
| Metric | Value |
|---|---|
| Price | ~$136 |
| Graham Value | ~$168 |
| Margin of Safety | 19% |
| Dividend Yield | 2.7% |
| Dividend Streak | 2 years (restarted after 2024 cut) |
| Payout Frequency | Quarterly |
The thesis: Yes, 3M cut its dividend in 2024 — ending a 67-year streak. That's actually why it's on this list. The cut was part of a comprehensive restructuring: 3M spun off its healthcare division (Solventum), settled its earplug and PFAS litigation, and reset the dividend to a sustainable level.
Under new CEO Bill Brown, 3M is executing an aggressive transformation — streamlining its 60,000+ product SKUs, cutting costs by $2.5+ billion, and refocusing on its highest-margin industrial, transportation, and electronics businesses. Q4 2025 results showed organic growth returning and margins expanding.
Why now: Post-restructuring 3M is a leaner, meaner industrial compounder. The reset dividend is well-covered, and the stock trades 19% below Graham Value. This is a recovery story for patient investors.
How to Use This List
Step 1: Match Stocks to Your Risk Tolerance
- Conservative investors (retirees, income-focused): Focus on Realty Income, PepsiCo, JNJ, and Eversource. These businesses are built to endure any economic environment.
- Moderate investors (balanced growth/income): Chevron, Target, and Verizon offer higher yields with manageable risks.
- Aggressive investors (long time horizon, comfortable with volatility): Altria, Pfizer, and 3M offer the deepest values but require conviction.
Step 2: Calculate Your Potential Income
Use our free Dividend Calculator to model exactly how much passive income each stock could generate.
Example: $10,000 invested in Realty Income at 5.7% yield = $570/year in dividends ($47.50/month) — and that grows every year as the company raises the dividend.
Step 3: Diversify Across Sectors
Our 10 picks span 7 sectors (Consumer Staples, Real Estate, Energy, Health Care, Utilities, Telecom, Industrials). Owning 4-6 names across different sectors protects you from any single industry downturn.
Step 4: Reinvest With DRIP
Turn on Dividend Reinvestment Plans (DRIP) to automatically buy more shares with each dividend payment. Over 10-20 years, compounding turns modest positions into serious wealth. Learn more about DRIP investing
What Changed From Last Month
This section is updated monthly when the list is refreshed.
March 2026 changes:
- Added: Eversource Energy (ES) — new Dividend Aristocrat analysis from Sure Dividend showing 13% expected annual returns
- Added: 3M Company (MMM) — post-restructuring turnaround creating value opportunity
- Removed: Lowe's (LOW) — rose above Graham Value after strong Q4 earnings; now in overvalued territory
- Removed: AbbVie (ABBV) — Stelara biosimilar competition narrowed margin of safety below our threshold
Methodology note: We recalculate Graham Values each month using the latest trailing EPS, analyst consensus growth rates, and AAA corporate bond yields. Stock prices are checked on the first business day of the month.
Frequently Asked Questions
What are the best dividend stocks to buy right now?
As of March 2026, our top picks based on Graham intrinsic value analysis are Realty Income (O), PepsiCo (PEP), Johnson & Johnson (JNJ), and Altria (MO). These stocks offer yields between 3.2% and 7.8% while trading below their estimated intrinsic values — giving you both income and a margin of safety.
How do you determine if a dividend stock is undervalued?
We use Benjamin Graham's intrinsic value formula: EPS × (8.5 + 2g) × 4.4 / Y. This calculates what a stock is worth based on its earnings and growth rate, adjusted for current bond yields. If the stock trades below this number, it has a margin of safety. Learn more about the Graham formula
Is a high dividend yield always good?
No. An abnormally high yield can signal that the market expects a dividend cut. That's why we don't just sort by yield — we screen for Graham Value margin of safety, dividend track record, and payout sustainability. A 4% yield that grows every year is better than an 8% yield that gets cut in half.
How much money do I need to start investing in dividend stocks?
You can start with as little as $1 using fractional shares at brokerages like Fidelity, Schwab, or Robinhood. Even $50-$100/month invested consistently in dividend stocks can compound into serious wealth over decades. See our guide on living off dividends
How often is this list updated?
Monthly, on the first week of each month. We recalculate Graham Values with fresh EPS data, check analyst growth estimates, and update the AAA corporate bond yield. Bookmark this page and check back each month for the latest picks.
Should I buy all 10 stocks on this list?
No. Pick 4-6 stocks that match your risk tolerance and diversify across sectors. Don't put all your money in aggressive picks — balance your portfolio with conservative names. Use our risk tier labels as a guide.
What is the Graham intrinsic value formula?
It's a valuation formula created by Benjamin Graham (Warren Buffett's mentor) that estimates a stock's true worth based on earnings, growth, and bond yields. Read our full breakdown of the formula
Are dividend stocks better than growth stocks?
Neither is universally "better" — it depends on your goals. Dividend stocks provide current income and tend to be less volatile, making them ideal for income-focused investors and retirees. Growth stocks offer higher potential appreciation but no income and more volatility. Many investors own both.
What is a Dividend Aristocrat vs. Dividend King?
A Dividend Aristocrat has increased dividends for 25+ consecutive years and is in the S&P 500. A Dividend King has 50+ consecutive years of increases regardless of index membership. See our full Dividend Kings list
Start Building Your Dividend Income Today
The stocks on this list aren't get-rich-quick picks. They're get-rich-slowly picks — the kind that compound wealth while you sleep, pay you monthly or quarterly income, and have been rewarding shareholders for decades.
Your next steps:
- Try our free Dividend Calculator — See how much income any stock would generate
- Join the Poor Man's Stocks newsletter — Get monthly updates when this list changes
- Read: Graham's 7 Criteria for Defensive Investors — The full framework behind our picks
The market doesn't reward the smartest investors. It rewards the most disciplined ones.
Data sources: Company filings, analyst consensus estimates (FactSet, S&P Capital IQ), Sure Dividend, Federal Reserve (AAA bond yields). Prices and Graham Values are approximate as of early March 2026. This article is updated monthly. Not financial advice — do your own research before investing.
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