The Best Dividend Stocks

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Investors often search for the best dividend stocks, but that’s not always the best place to look for gains. Often, the best dividend stocks are those growing their dividends the most - not just maintaining high dividend yields. Tracking dividend growth is much harder than searching for dividend stocks, unless using AI tools like LevelFields. Often, large stock price increases follow dividend increases, creating opportunities for dividend yield as well as share price appreciation. Tracking dividend increases is a great way to locate long-term investments.
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Investing in dividend-paying stocks is a tried-and-true strategy for generating steady, reliable returns in your investment portfolio. This month, several companies have announced significant increases in their dividend payouts, signaling strong financial health and a commitment to returning value to shareholders. 

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Dividend Increases: What are they and why do they matter?
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Dividend increases occur when a company raises the amount of cash it distributes to its shareholders as dividends, reflecting its confidence in financial stability and future growth. This is significant for investors, as it signals that the company is generating sufficient profits and has a sustainable cash flow to reward its shareholders.

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A rising dividend can also indicate a healthy business, attracting more investors and driving up the stock price. For income-focused investors, dividend increases enhance the yield on their investments, providing a growing income stream over time. Additionally, companies with consistent dividend growth are often perceived as stable and reliable, making them attractive long-term holdings. In essence, dividend increases matter because they not only benefit shareholders directly but also serve as a key indicator of a company’s financial health and commitment to returning value to its investors.
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‍Here are some stocks to consider for long-term investment based on recent performance and dividend growth.

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10. Balchem Corporation (BCPC)
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• Dividend Increase: 10%
• Current Dividend Yield: 0.54%
• Sector: Specialty Chemicals Balchem Corporation, a leader in specialty chemicals for nutrition and health, has shown a solid commitment to growth and shareholder returns with a 10% increase in dividends. Its consistent performance and strategic market position make it a reliable stock for long-term investors.

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9. ServisFirst Bancshares, Inc. (SFBS)
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• Dividend Increase: 12%
• Current Dividend Yield: 1.49%
• Sector: Banking ServisFirst Bancshares continues to impress with robust earnings growth and capital strength, making it an attractive pick for those looking to invest in the financial sector with a growing dividend.

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8. First Farmers and Merchants Corporation (FFMH)
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• Dividend Increase: 12.5%
• Current Dividend Yield: 3.09%
• Sector: Regional Banking With a significant dividend increase and a high yield, First Farmers offers a great blend of income and stability in the banking sector, particularly appealing in the current economic environment.

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7. Accenture plc (ACN)
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• Dividend Increase: 15%
• Current Dividend Yield: 1.66%
• Sector: Consulting Services Accenture's global reach and diverse service offerings provide a solid foundation for growth. Its recent 15% dividend increase reflects strong financial health and confidence in future earnings.

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6. Mastercard Incorporated (MA)
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• Dividend Increase: 15%
• Current Dividend Yield: 0.58%
• Sector: Financial Services Mastercard's consistent growth in payment processing and expansion into new digital payment technologies make it a top contender for any dividend-focused portfolio.

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5. Zoetis Inc. (ZTS)
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• Dividend Increase: 16%
• Current Dividend Yield: 1.20%
• Sector: Animal Health As a leader in animal health medicines and vaccines, Zoetis presents a unique investment opportunity with steady growth and an increasing dividend, appealing to investors looking for exposure to the healthcare sector.

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4. Aflac Incorporated (AFL)
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• Dividend Increase: 16%
• Current Dividend Yield: 2.18%
• Sector: Insurance Aflac's role in supplemental insurance products, both in Japan and the U.S., coupled with a strong dividend increase, offers a solid value proposition for long-term investors.

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3. Ameris Bancorp (ABCB)
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• Dividend Increase: 33.3%
• Current Dividend Yield: 1.21%
• Sector: Banking Ameris Bancorp’s significant dividend increase is a testament to its financial strength and commitment to shareholder returns, making it a standout in the regional banking sector.

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2. Tecnoglass Inc. (TGLS)
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• Dividend Increase: 36%
• Current Dividend Yield: 0.70%
• Sector: Building Products Tecnoglass has demonstrated exceptional growth in the construction sector, and its substantial dividend increase reflects its robust earnings and optimistic future outlook.

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1. Royal Caribbean Group (RCL)
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• Dividend Increase: 38%
• Current Dividend Yield: 0.82%
• Sector: Leisure Despite the challenges in the travel sector, Royal Caribbean is bouncing back strongly, as evidenced by its significant dividend increase, making it a promising pick for those betting on a recovery in global travel.

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These companies are not just rewarding shareholders with higher dividends, but they are also well-positioned for sustainable business growth. Whether you're looking for steady income or long-term capital appreciation, these stocks represent some of the best opportunities in the market today. Remember, investing in dividend stocks requires consideration of your overall investment strategy and risk tolerance. Always perform due diligence before making investment decisions.

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FAQs about Dividend Stocks

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What is the best dividend stock to buy? 

The best dividend stock to buy depends on various factors including financial health, dividend yield, and growth prospects. Currently, companies like Royal Caribbean Group (RCL) and Accenture (ACN) stand out due to their significant dividend increases and strong market positions.

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How to make $1000 a month in dividends? 

To make $1000 a month in dividends, you need to invest a substantial amount in high-yield dividend stocks. For instance, if the average dividend yield is 3%, you would need to invest approximately $400,000 to generate $1,000 monthly. Diversifying your portfolio across several high-yield stocks can also help achieve this goal.

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What is the king of dividends?

The "king of dividends" refers to stocks that have a long history of increasing their dividend payouts annually. Companies like Procter & Gamble, Johnson & Johnson, and Coca-Cola are often referred to as Dividend Kings for their decades-long record of dividend increases.

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What are the safest dividend stocks?

The safest dividend stocks are typically found in well-established companies in defensive sectors such as utilities, consumer staples, and healthcare. These sectors tend to generate stable earnings regardless of economic conditions, supporting consistent dividend payments.

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Which is the highest dividend paying stock?

The highest dividend-paying stocks can vary, but sectors like real estate investment trusts (REITs) and master limited partnerships (MLPs) often offer the highest yields. These sectors benefit from favorable tax treatments and high cash flow requirements, allowing them to distribute substantial dividends.

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What are the cheapest stocks that pay the highest dividends?

Cheapest stocks with high dividends are often found in sectors like telecommunications, utilities, and energy. While these stocks may offer high yields, it’s important to assess the risk and sustainability of their dividend payments. Companies with unusually high dividends relative to their stock price may indicate potential red flags.

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